US Treasury Proposes Expanded EV Charging Tax Credit

US EV

The US Department of the Treasury has proposed a new rule to clarify and expand the eligibility of electric vehicle (EV) charging infrastructure for a key tax credit under the Inflation Reduction Act (IRA). The rule, if enacted, could provide a significant boost to the nation’s EV charging network by incentivizing investment in charging ports.

Under the proposed changes, businesses would be able to claim the "30C" tax credit, which covers up to 30% of the installation costs — or up to $100,000 — for each individual charging port. This proposal marks a shift in the definition of “a single item of property,” offering greater clarity for project developers.

Impact on National EV Charging Goals

The Biden administration has set an ambitious goal to deploy at least 500,000 public EV charging ports by 2030, in line with its broader efforts to reduce US carbon emissions. Currently, there are 192,000 charging ports in operation across the country, with around 1,000 new ports being added each week. At this pace, the US is projected to meet its target by mid-2030. The proposed tax credit expansion could further accelerate this progress by making it more financially viable for businesses to invest in EV infrastructure, particularly in low-income and rural areas that are eligible for the credit.

The Treasury Department will accept public comments on the proposed rule for 60 days, and a public hearing may be scheduled if requested.