The Biden administration has proposed rules to maximize the number of electric vehicle (EV) chargers eligible for tax credits.
Before the proposed rules were released, it was unclear whether the tax credit would apply to the entire EV charging station or to the individual ports that make up the charger.
The proposal would apply on a per-port basis, meaning companies could apply multiple times for charging stations that can charge multiple cars at once.
The tax credit allows businesses to deduct 30 percent of the cost of installing chargers, up to $100,000. Individuals can also deduct 30 percent of the cost, up to $1,000 per port.
This exemption only applies to low-income or non-urban areas.
The tax credit is part of the comprehensive Climate Tax and Health Care Act of 2022, which President Biden signed into law.
Additionally, the proposal supports a broad definition of what counts as a non-urban area that the administration proposed earlier this year, which would provide credits for chargers in areas where roughly two-thirds of Americans live.
“To help more Americans make the switch to electric vehicles, we need to ensure they can charge them where they live, work and shop, from urban centers to rural areas,” White House adviser John Podesta said in a written statement.
“The Controlling Inflation Act would expand access to charging by reducing the cost for homes and businesses to install EV chargers by up to 30 percent,” he added.
One of the bill's chief architects, centrist Sen. Joe Manchin (R-Va.), had previously criticized the more flexible definition of non-urban areas, saying it “ignores the realities of rural America.”
But last year a group of 15 Democrats Request to the Biden Administration Adopt flexible guidance that maximizes eligibility for more chargers.
Currently, a lack of public chargers is a major obstacle to the widespread adoption of electric vehicles, with many Americans worried they won't be able to charge their cars during long trips.
The Biden administration announced last month that the number of public chargers had doubled since Biden took office. But at 192,000, the number of public chargers remains short of the 500,000 goal the Biden administration has set for 2030.
