EV Charging Station Tax Credit: How Businesses Can Benefit
Virginia’s governor signed into law last month legislation that makes clear the state’s goal of reducing vehicle refueling costs and reducing emissions of greenhouse gases via the electrification of the transportation sector. It’s no secret that the widespread adoption of electric vehicles will help Virginia meet these goals, and the state has enacted a number of measures that incentivize citizens to start driving electric vehicles.
These measures help ensure a cleaner, cheaper and healthier transportation sector for all who call the commonwealth home. But how can Virginia further its plans for transportation electrification while also maintaining its reputation as an excellent place to do business?
Virginia can establish a tax credit for businesses that install electric vehicle charging infrastructure. Those who drive gas-powered vehicles are able to stop at any gas station to refuel, while drivers of electric vehicles have more specific needs and it takes longer to charge. EV drivers should be able to charge their vehicle while patronizing local businesses, if those businesses have provided charging infrastructure. A tax incentive would ease the cost of installing and maintaining a charger and would increase patronage to those businesses. Imagine perusing a farm stand or spending some time at a brewery while your vehicle charges in the parking lot, waiting to take you to your next location.
It’s a win-win situation for everybody: without worrying about the price of gas, drivers stretch their legs while their car charges, and businesses benefit from an extra reason for people to stop in and explore. Businesses in rural areas that install charging infrastructure would give electric vehicle drivers — of which there will be an increasing number of in the coming decades — a reason to visit, all the while reducing range anxiety, which remains a major barrier to widespread electric vehicle adoption.
The benefits that come with a business installing charging infrastructure are numerous. While the cost may stand in the way for some businesses, a tax credit could help make the idea a reality.
Virginia wouldn’t be the first state to introduce a tax credit for businesses that install electric vehicle charging infrastructure. New York provides an income tax credit for 50% of the cost up to $5,000 for the installation of electric vehicle charging infrastructure. Businesses that install charging infrastructure in Washington also enjoy a tax credit. In Oklahoma, businesses installing charging infrastructure receive a tax credit worth up to 45% of the installation costs. Providing tax credits for businesses that install charging infrastructure is commonsense policy being enacted in states throughout the country.
Even the federal government offers a tax credit for businesses looking to install charging infrastructure. With the Alternative Fuel Vehicle Refueling Property Credit, businesses that install charging infrastructure are credited either $30,000 or 30% of the cost of installation, whichever is less.
Providing tax credits for businesses that install electric vehicle charging infrastructure is a simple, popular way to incentivize the use of electric vehicles. When drivers can shop while their cars charge, everyone wins.