A Guide to EV Charging Tax Credits and Incentives

ev charging tax credits

The need for EV charging stations is increasing as more consumers switch to electric vehicles. As federal and state programs push for the installation of EV charging stations to help with net-zero goals, now is the best time to consider investing in EV charging for your properties. There is a plethora of EV charging funding programs available on the federal, state, and local levels that help make the installation costs more affordable and thus an easier financial decision. Here is a guide to the current major programs available and where you can learn more.

Federal EV Charging Tax Credits and Incentives

Alternative Fuel Infrastructure Tax Credit

The Inflation Reduction Act recently extended this tax credit to 2032, which offers an incentive for property owners and developers to install EV charging stations in low-income or rural areas. The federal program applies to properties of all types, and provides a tax credit of 30% of the project cost or 6% in the case of property subject to depreciation, not to exceed $100,000 per unit and up to $30,000 per property. Projects that meet prevailing wage/apprenticeship requirements may be eligible to receive the full 30% tax credit, regardless of depreciation status.

The National Electric Vehicle Infrastructure (NEVI) Formula Program

The NEVI program is part of the Infrastructure Investment and Jobs Act (IIJA), and allocates $7.5 billion for EV charging projects throughout the U.S. $5 billion is set aside for nationwide funding, and $2.5 billion is planned for corridor and community charging grants. NEVI promotes equal access to electric vehicles, aims to reduce emissions from transportation, and helps push forward the progress toward a federal goal of net zero emissions by 2050. The funding is dispersed to individual states, who then submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) about how the state intends to distribute the funds.

Volkswagen Environmental Mitigation Trust

The Volkswagen Clean Air Act Civil Settlement includes several settlements that resolve allegations of Volkswagen violating the Clean Air Act by selling approximately 590,000 model year 2009 to 2016 diesel motors. As part of this settlement, VW will provide $2.9 billion into a fund defined for eligible mitigation actions that will reduce nitrogen oxide emissions, which includes funding for EV charging stations. Funding from this trust is dispersed to various states for additional allocation toward EV projects and funding programs.

State and Local EV Charging Incentives

There are over two hundred state, local and utility rebates and incentive programs throughout the U.S. for various property types, and the programs vary depending on location, utility company, public or private charging, and other factors. For property owners considering EV charging stations, there is an abundance of financing options available on the state level. When the project meets requirements, federal, state and utility funding can be used together to fund a project. In addition to rebates for EV charging, there are various other incentives available, including: low/zero interest loans, utility bill credits, and property tax exemptions.


California has the most incentives of all states when it comes to EV-related programs. Among the many incentives, an established program is the Property Assessed Clean Energy (PACE) Loss Reserve Program, which provides loans to property owners to help pay for energy improvements, including the installation of EV charging stations. To be eligible, property owners need to agree to a contractual assessment on the property tax bill, have a clean property title, and be current on property taxes and mortgages. The financing limits for PACE are 15% of the first $700,000 of the property value and 10% of the remaining property value.

Additionally, various regions in California provide EV charging station rebates. One rebate program was just enacted in September 2023 for Northern & Southern California. This program provides up to 50% of the cost of installation, with maximum of up to $100,000 per station for DCFCs with greater than 274 kW outputs, and a maximum of $50,000 per station for outputs between 150kW and 274kW. Southern California Edison offers another rebate program. Charge Ready has assorted options for commercial, multi-family, and public sector properties providing financial incentives, infrastructure, and technical support to facilitate the installation and maintenance of EV charging stations.

New York

New York also has multiple state incentives. In addition to New York’s portion of NEVI program and Volkswagen Environmental Mitigation Trust funding, New York State Energy Research and Development Authority’s (NYSERDA) Charge Ready NY Program provides up to $4000 rebates per port for private companies toward the purchase and installation of Level 2 EV charging stations at public facilities, office, and multifamily dwellings.

Multiple utility and private incentives are available based on the area. For an extensive list of New York’s incentives, check out the U.S. Department of Energy page.

New Jersey

Right next door, New Jersey has a suite of robust EV charging station incentive programs as well. The New Jersey Department of Environmental Protection (NJDEP) offers grants for Level 1 and Level 2 charging station installations, with a maximum rebate of $750 for Level 1 and $4000 for Level 2. Eligible EV charging stations must be located at workplaces, government agencies, non-profits, or multi-unit dwellings. Learn more about the New Jersey programs here.


Heading west again, Colorado is currently updating its Greenhouse Gas Pollution Reduction Roadmap, which sets a pathway to meet the state’s climate targets of 90% reduction by 2050 from 2005 levels. To achieve reduction levels, the state is rolling out additional rebates for companies to purchase EVs and install charging stations, making it one of the best states for receiving rebates and incentives. The Colorado Energy Office (CEO) is providing grants that will fund up to 80% of the cost of EV charging stations, including up to $70,000 per station for dual-port DCFC stations. For disproportionately impacted communities, incentives are up to 90% of the cost of a Level 2 EV charging station. Various utility rebates are also available for charging stations. See Colorado’s laws and incentives here.

To find more renewable energy and EV charging incentives, check the U.S. Department of Energy site, which offers comprehensive lists by state.

Independent EV Charging Consulting

There are multiple considerations to take into account when installing EV charging stations on your property, including feasibility, design, and construction factors. With the varied EV charging tax credits and incentives available, it can be overwhelming to explore all the possibilities. Partner Energy’s multidisciplinary team of renewable energy and sustainability professions can help you with custom EV charging solutions to suit your properties and portfolios, providing end-to-end program management to guide you through the entire development cycle of a project.

Contact us for more information today.

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