Federal tax credit for EV charger installation costs

[JindoFuzz]

I'm hoping to get some first-hand input on the federal home EV charger tax credit, which allows homeowners to claim 30% of the cost of EV chargers up to a total $1000 credit (ie, a 30% credit on up to $3333 in costs). The DOE site simply refers to deducting the cost of "property" used for EV charging. The consumer-facing sites interpreting the law all say that installation costs are similarly subject to the credit. In my case, I have a very crowded 100-amp service box, and it seems likely I'll need to upgrade to 200+ amp service. Has anyone tried taking the credit for that cost? I wouldn't be upgrading the panel except for the EV charger, so I think it's plausibly an installation cost, but I suppose I might realize some other benefits from the upgraded panel down the road (even if it's just incidentally-increased home value).

 

[Akikiki]

Long term have a EV charging-ready home is going to be a plus you can add to attract buyer to your home.

City insisted I upgrade my 100 to 200 amp service before I could add more solar. Did and my CPA took the fed tax credit on the service upgrade too because it was required for the solar project. Did it all in same year and that helped to justify the cost.

 

[sewing1]

In my opinion, if you have to upgrade your power panel from 100 Amp to 200 Amp in order to install EV charging equipment, then you claim the 30% federal income tax credit for that cost. But I'm not a tax professional.

 

[SageBrush]

I'm hoping to get some first-hand input on the federal home EV charger tax credit, which allows homeowners to claim 30% of the cost of EV chargers up to a total $1000 credit (ie, a 30% credit on up to $3333 in costs). The DOE site simply refers to deducting the cost of "property" used for EV charging. The consumer-facing sites interpreting the law all say that installation costs are similarly subject to the credit. In my case, I have a very crowded 100-amp service box, and it seems likely I'll need to upgrade to 200+ amp service. Has anyone tried taking the credit for that cost? I wouldn't be upgrading the panel except for the EV charger, so I think it's plausibly an installation cost, but I suppose I might realize some other benefits from the upgraded panel down the road (even if it's just incidentally-increased home value).

I think the panel is fair game, but my understanding is that up to $1,000 of costs may be eligible, so up to $300 tax credit.

The way to play this if you can is to upgrade your panel as part of a PV install.

I am not a CPA

 

[JindoFuzz]

Long term have a EV charging-ready home is going to be a plus you can add to attract buyer to your home.

City insisted I upgrade my 100 to 200 amp service before I could add more solar. Did and my CPA took the fed tax credit on the service upgrade too because it was required for the solar project. Did it all in same year and that helped to justify the cost.

This is exactly the kind of anecdote I was looking for. I think the same rationale would apply here. THANK YOU!!

 

[JindoFuzz]

I think the panel is fair game, but my understanding is that up to $1,000 of costs may be eligible, so up to $300 tax credit.

The way to play this if you can is to upgrade your panel as part of a PV install.

I am not a CPA

That was my initial read too. But there are several websites that describe it as a $1000 credit, not 30% of $1000. I’ll ask my CPA to give it a shot.

I looked into solar. But we’re in the PNW - land of cheap hydroelectricity and scant sunlight - so it would take decades to break even.

Thanks for your response!

 

[SageBrush]

That was my initial read too. But there are several websites that describe it as a $1000 credit

The IRS instructions for form 8911 says

Amount of Credit For property of a character subject to an allowance for depreciation (business/investment use property), the credit for all property placed in service at each location is generally the smaller of 30% of the property’s cost or $30,000. For property of a character not subject to an allowance for depreciation placed in service at your main home (personal use property), the credit for all property placed in service at your main home is generally the smaller of 30% of the property’s cost or $1,000.

That reads to me like max $300 credit per property if a business, $1,000 max credit if 100% personal. So I think you are right if you are talking about a personal install. I also looked at Form 8911 and again come to this conclusion.

On thing though: I would not try to gain tax credit for the panel upgrade unless it was necessary. I would want the electrician to specify on the invoice that the panel upgrade was required to accommodate the EVSE. This should not be too hard, by the way: just buy an EVSE that can pull too much current for your current panel

 

[JindoFuzz]

On thing though: I would not try to gain tax credit for the panel upgrade unless it was necessary. I would want the electrician to specify on the invoice that the panel upgrade was required to accommodate the EVSE. This should not be too hard, by the way: just buy an EVSE that can pull too much current for your current panel

oh, I’m way ahead of you. I already did that accidentally.

Thanks for posting the IRS instructions. I’m saving the citation to share with my CPA.