Margaret-Ann Leavitt Margaret-Ann Leavitt

What does the Inflation Reduction Act (IRA) mean for EV charging?

The Inflation Reduction Act (IRA) is a law that provides nearly $370 billion in climate change investments to help reduce carbon emissions by 40 percent by 2030. It provides significant tax breaks for businesses that purchase new medium and heavy-duty electric vehicles (EVs) and new chargers.

These include:

  • A Clean Commercial Vehicle Credit for 30% of the difference between the cost of the clean vehicle and its gas-powered counterpart – up to $40,000 per medium/heavy duty commercial EV

  • An Alternative Fuel Vehicle Refueling Property Credit for 30% of total costs of purchase and installation of charging equipment—up to $100,000 per charger

  • A renewal of the existing $7,500 Clean Vehicle Credit for passenger and light-duty vehicles

  • A Previously-Owned Clean Vehicles Credit of $4,000 or 30% of the vehicle sale price (whichever is lower) for used EVs

The IRA tax credits will start after December 31, 2022, and end after December 31, 2032. Businesses can use the credits after receiving other grants or rebates like NEVI funding. These credits, along with many other grants and programs, make electrifying your fleet in the US more affordable than ever.

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