Reports from the IRS and Treasury Department

Biden Administration Proposes Expanded EV Charger Tax Credits, Expected to Reach $2.5 Billion

Sep 18, 2024, 02:07 PM

The Biden administration has proposed new rules to expand the eligibility for tax credits related to electric vehicle (EV) charging stations and other clean fuel infrastructure. The IRS and Treasury Department detailed the proposed guidance on Wednesday, which aims to lower transportation costs and increase American energy security through the Alternative Fuel Vehicle Refueling Property Credit. This initiative is part of the Inflation Reduction Act. The proposed rules outline which EV charging stations, individual charging ports, and hydrogen fueling infrastructure would qualify for the tax credits. Additionally, the Treasury Department has waived certain subsidy requirements for leased EVs, which has led to an increase in tax credits claimed by Americans. The Congressional Budget Office had estimated that $0.5 billion in tax credits would be claimed in 2024, but the actual amount is expected to be $2.5 billion.