Tax credits for chargers are finished, and credits for EV purchases may be next

In a masterpiece of bad timing, a federal tax break for EV chargers, which allowed filers to take a tax credit for 30% of the cost of a home charger, will expire at the end of this year.

 

In a masterpiece of bad timing, a federal tax break for EV chargers, which allowed filers to take a tax credit for 30% of the cost of a home charger, will expire at the end of this year, just as Volts and Leafs begin to trickle into more showrooms, and at least half a dozen new EV models are set to launch. To be fair, we note that the feds are promoting EV charging with the other hand, as the DOE awarded $7 million this week in research grants to four companies to develop smart charging technology. Tax credits for two and three-wheeled EVs and gas-to-electric conversions will also expire at the end of this year.

The $7,500 tax credit for buying new EVs is still the law of the land. However, this and other energy-related tax credits are expected to be very much in play as the endless political battle over the budget moves into its next round. The EV tax credit is called a tax cut on one side of the aisle, wasteful spending on the other. Unfortunately, both sides seem to consider it a “football” which might be traded away when Congress considers a permanent extension to the Payroll Tax Holiday.

Plug In America, an advocacy group that lobbies for EV-friendly legislation, is trying hard to influence the ongoing debate in Congress. The group’s Legislative Director Jay Friedland said, “This is an exciting time for electric vehicles. The upcoming vote could halt production and lower buyer confidence, or it could boost it.”

For more information about Plug In America, which is financed by contributions, see:
http://www.pluginamerica.org