With a new year comes new opportunities, and 2023 is shaping up to have BIG opportunities in electric vehicle (EV) charging!

The Inflation Reduction Act (IRA) of 2022, passed on August 16th, 2022, is the most significant transportation electrification legislation in U.S. History (so far!) and will impact the EV market for at least the next decade. So, what does it include?

Alternative Fuel Infrastructure Tax Credit

As of January 1, 2023, electric vehicle supply equipment (EVSE) is eligible for a tax credit of 30% of the cost OR 6% (in the case of property subject to depreciation), not to exceed $100,000. This is an important distinction to make, as many websites are erroneously stating only the 6% number. For most projects, this means that an owner installing EV charging stations will be eligible for a tax credit for 30% of total project costs up to $100,000, SIGNIFICANTLY higher than the $30,000 previously provided. However, this increased funding comes with some important requirements:

• Permitting and inspection fees are not included in covered expenses
• Eligible charging equipment must be installed in locations that meet certain census tract requirements:
  • Population census tract where the poverty rate is at least 20%
  • Metropolitan and non-metropolitan area census tract where the median family income is less than 80% of the state medium family income level
• Eligible projects must also meet apprenticeships and prevailing wage requirements

While these requirements are significant, the potential tax savings if your property qualifies are as well. Additionally, the IRA also provides new tax credits on new, used, and commercial fleet EV vehicles, with commercial EVs eligible for credits up to 30% of the sales price.

Local rebates, including California’s CaleVIP program, can provide additional savings of up to $6,000 to $7,000 PER charger depending on your county as well!

Make your facility EV-ready

Taken together, there has never been a better opportunity to electrify your fleet and make your facility EV-ready for customers and employees alike. Sunworks is ready to provide full turn-key installation of EV charging stations either alone or in conjunction with our PV and storage capabilities.

For any questions, or if you are ready to move forward with your EV project, contact us today.

Looking forward to an electrified 2023!