New EV incentives in USA (including installing chargers)

[Rothgarr]

Saw this interesting article:

US announces retroactive subsidy extension

A new US American spending bill includes the retroactive extension of tax credits for home EV charger installation, electric motorcycles, and fuel-cell vehicles. Previously, the credits had been extended through 2017, and have now been extended to 2020.

Now US American taxpayers can qualify for a 30% rebate (with a $1,000 limit) on installation costs for EV chargers, a 10% credit (up to $2,500) on 2- or 3-wheeled electric vehicles such as electric motorcycles, and a $4,000 credit for the purchase of a new fuel-cell vehicle.

The retroactive tax credit subsidy initially happened because customers had not been aware of the programme at the time. Now the tax credits have been extended reaching back two years to 2017, as well as forward until 2020. The extension of the credits was done awkwardly in the past, as the application period at one point only covered five days, and the information was only broadcast after the fact. This means that most people who have benefitted from the credits were not planning on doing so, and those who were relying on them have not been able to do so.​

But I have questions...

- Is the 30% rebate on chargers an actual rebate? Or is it a tax credit?
- Does that include home charging solutions like the Tesla wall unit and installation?
- And do we just report this on our taxes this year? Or do we need to do something else to claim the rebate/credit?

Anyone know any additional details?

 

[RayK]

A quick Google search.... US extends tax credits for EV chargers, motorcycles, fuel cells, again retroactively - Electrek

 

[WilliamG]

Ahem:

Tax credits extended for home EV Charger installations

 

[srs5694]

But I have questions...

I'm basing the below on my memory of how it worked for the 2016 tax year, when I installed my Clipper Creek HCS-40 EVSE for the Chevy Volt that I leased beginning that same year. It's conceivable things have changed, or my memory might be faulty. Check the IRS's forms or consult a tax professional if you have more specific questions.

- Is the 30% rebate on chargers an actual rebate? Or is it a tax credit?

It's a tax credit. When I filed my taxes, I was annoyed to discover that H&R Block's tax software did not include the relevant form. I needed to download a PDF of the form from the IRS, fill it in manually, enter an override into my H&R Block software, print everything out, and file by snail-mail. This also prevented e-filing of my state tax return. A friend of mine TurboTax reported that TurboTax did include the necessary form. I have no idea if H&R Block has updated their software to include the necessary form. In any event, it's worth looking into this before you buy tax software if you want to claim this credit; or at the very least, be prepared to spend the extra time and effort to file by paper.

- Does that include home charging solutions like the Tesla wall unit and installation?

It should. From a tax perspective, I don't see why a Clipper Creek EVSE would qualify but a Tesla EVSE would not. (They're both EVSEs; don't be misled by the fact that the term "EVSE" isn't used by Tesla and is rarely used in the Tesla community. I don't recall if the term "EVSE" is on the tax form or if they use some other term, like "charging equipment.") The credit applies to the EVSE itself and all installation costs, including for new hardware like wiring and the services of an electrician, up to some limit that I don't recall. If you think you'll need big changes to your house wiring to support an EVSE, like a boost from 100A to 200A service, this tax credit can be a good way to reduce that expense.

- And do we just report this on our taxes this year? Or do we need to do something else to claim the rebate/credit?

Yes, you claim it when you file your 2019 taxes -- if you do the installation this year. This late in the year, if you haven't yet done the installation, scheduling it is likely to slip to next year, in which case you'd claim it with your 2020 taxes. I have no idea what to do if your expenses were split across years, like buying a Wall Connector in December but paying an electrician for installation in January.