Electric vehicle charging tax credits will be available in most parts of the country

Electric vehicle charging tax credits will be available in most parts of the country

The Biden administration released guidance Friday that makes much of the country eligible for a tax credit to offset the cost of installing electric vehicle chargers.

Consumers and businesses can claim the credit for charging devices installed at homes or commercial properties for public or private use. The initiative aims to make it more affordable for Americans to deploy electric vehicle chargers, which will need to be widely available across the United States to meet the Biden administration’s goal. electric vehicles are half New car sales by 2030

Before Friday’s guidance, it was unclear which sectors might qualify for the tax credit. Eligible chargers were required to be placed in low-income or non-urban areas, but it was unclear how many locations would fall under the categories.

The Treasury Department opted to make a broad group of locations eligible, covering much of the country outside major cities. eligible area Covering about two-thirds of the US populationTreasury Department spokeswoman Ashley Shpittal said in a statement.

Deputy Treasury Secretary Wally Adeyemo pointed to the surge in electric vehicle sales last year and said the administration expects new guidance to spur greater progress this year.

“Additional clarity around the legislation’s incentives to build new charging infrastructure in the communities that need it most will help drive continued progress in 2024,” Mr. Adeyemo said in a statement.

Individuals and businesses purchasing chargers or other eligible refueling devices can get a credit Up to 30 percent of the cost of installation.

Clean energy proponents said the widespread availability of the tax credit would accelerate the installation of chargers across the country, helping drive widespread adoption of electric vehicles. Sales of such vehicles have been growing faster than any other major category of automobile, but demand has not increased as much as expected. This has prompted some car manufacturers to stop production.

The Biden administration is trying to entice consumers to buy electric vehicles by offering tax credits of up to $7,500 per vehicle. The federal government is also spending billions of dollars to help build a national network of reliable, high-speed chargers, but implementation has been slow.

Luke Tonchel, a senior director at the Natural Resources Defense Council, said more clarity on eligible locations could have accelerated the deployment of charging infrastructure last year, and there were concerns that federal officials would not make the credits widely available. But he said the new guidance now will help speed up the installation of more chargers.

“I hope that with this clarity, there will be both businesses and consumers who are going to invest more in charging knowing that it is now available,” Mr Tonchel said.

Albert Gore III, executive director of the industry group Zero Emission Transportation Association, said the new guidance is a “positive step” that will help attract more investment in rural and low-income communities.

“This is going to significantly increase the availability of public charging,” Mr Gore said. “We’re very pleased to see where the guidance ended up.”

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