New Guidance Unlocks Charging Tax Credits
WASHINGTON, D.C. – The U.S. Treasury Department issued new guidance defining eligibility for electric vehicle charging tax credits set by the Inflation Reduction Act. The guidance will allow chargers built last year to qualify for the credits and provide certainty for future investments so that more vehicle charging will come online.
The following is a statement from Jordan Brinn, clean vehicles and infrastructure advocate at NRDC (Natural Resources Defense Council):
“The biggest thing we can do to get more electric vehicles on the road is to build the charging stations they need to juice up. Treasury’s action today will help jump start the installation of charging stations all across the nation – at schools, homes, convenience stores, rest stops and apartment buildings.
“The guidance gives consumers and businesses the rules they need to qualify for tax credits to build more chargers. This is a crucial step to deliver on the Biden administration’s goal to get more clean cars, trucks, and buses on the road.”
Background
This new Treasury announcement builds on guidance released earlier this year for the so-called 30C tax credit. While the earlier guidance had clarified which areas of the country qualified as eligible non-urban or low-income census tracts, this new guidance clarifies what equipment qualifies for the credit and what types of expenses can be included. With this clarification consumers, businesses and non-profits can determine the amount they can qualify for – and then actually claim the credit.
This new guidance clarifies eligible property, capitalization, and apprenticeship definitions and provides additional information necessary for tax filers to take advantage of the credits.
NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd).