Understanding the AFV Property Credit
The IRS is currently offering a nationwide tax credit for the purchase of new EV charging stations. The credit can be applied to the purchase of any EV hardware that was installed in 2020. This includes residential or commercial AC charging stations, and even DC fast charging stations! The tax credit covers a portion of the cost of hardware and installation (30%) but how much you can claim and what your maximum threshold is depend largely on where you're installing your new EV charging hardware. It can also be applied to previously purchased EVSE all the way back to 2018. If you haven't already taken advantage of this, act soon—the tax credit expires on December 31, 2020. Here's are some examples of how the tax credit can be applied.
These high power DC fast charging stations (100-350kW) can charge an EV in around 15-30 minutes. These stations are ideal for rest stops, gas stations, and fleet depots—anyplace quick driver turnaround time is crucial.
Here's how much you could save on DC stations. (Actual prices may vary).
- Hardware cost (1 unit) — $43,250
- Installation ($21K/unit) — $21,000
- TOTAL— $64,250
- 30% Tax Credit — $19,275.00
These charging stations (3.7-7.4 kW) can charge an EV in around 3-4 hours. These stations are ideal for workplaces, shopping centers, hotels, and parking garages—any place a car is routinely left for over an hour.
Here's how much you could save on commercial AC stations. (Actual prices may vary).
- Hardware cost (2 units) — $11,760
- Installation ($3K/unit) — $6,000
- TOTAL— $17,760
- 30% Tax Credit — $5,328.00
These residential charging stations (3.7-7.2 kW) can charge an EV in around 3-4 hours. Same as the commercial stations in charging speed, these units are designed for single user access in residential conditions.
Here's how much you could save on residential AC stations. (Actual prices may vary).
- Hardware cost (1 unit) — $795
- Installation ($500/unit) — $500
- TOTAL— $1,295
- 30% Tax Credit — $388.50
Yes! One major feature to note is that this tax credit is stackable with other EV rebates. So, if you have a state or utility program in your area offering funding for new EV charging projects, you can pair that with this tax credit to maximize your savings!
Yes. Every location in the United States is eligible, in one way or another, to collect from this tax credit. If you've installed or intend to install EV charging stations at your location before December 31, 2020, you can save up to 30% off your hardware and installation.
All locations are eligible for 30% off their hardware and installation costs, but the threshold differs depending on the site location.
According to the IRS—depreciable properties (businesses and investment properties) are eligible up to $30,000, while non-depreciable properties (private residences) are eligible for up to $1,000.
Since this tax credit is processed along with all your other yearly taxes, you will receive your credit along with your annual tax return.
Yes. This federal tax credit initially expired on December 31, 2017, but has now been retroactively extended through December 31, 2020. Any stations installed in that time qualify for this federal tax credit.
Ready to see how much you'll save?
This tax credit comes off the table on December 31, 2020, so if you're planning on getting EV charging stations, the time to act is now. Ready to get started?Request a quote