By Maria Neve, Vice President, Electrification and Sustainability at Wheels Donlen
The adoption of the Inflation Reduction Act (IRA) is generating a lot of excitement among electric vehicle enthusiasts; however, it is also raising many questions for businesses who were looking to expand their EV footprint.
The good news is that the 200,000-vehicle cap per manufacturer has been lifted. Previously, federal tax credits were capped at 200,000 vehicles per manufacturer.
Also, prior to this bill, there was an IRS tax credit for installation of charging stations for both businesses and residences. The new law increases the maximum credit from $30,000 to $100,000 per location.
These incentives, along with any potential state incentives, are meant to close the gap between the cost of a new EV, versus an ICE vehicle. The credit will apply to any vehicles placed in service after Dec. 31, 2022, through the year 2032.