The Biden administration is making moves to clear up how homeowners and businesses can get their hands on some serious tax credits for installing electric vehicle (EV) chargers. The Treasury Department proposed a new rule on Wednesday that could maken credits worth up to $1,000 for individuals and a whopping $100,000 for businesses available for each EV charger installed.

This is big news for businesses planning to set up multiple chargers, as they could be eligible for significant credits to offset the costs, reports AP News.

Big Boost for EV Charging Infrastructure

John Podesta, the White House senior advisor for international climate policy, put it plainly: “In order to help more Americans go electric, we need to make sure they can charge their EVs where they live, work and shop – from inner-city neighborhoods to rural areas.”

The 2022 Inflation Reduction Act is making this happen by offering families and businesses up to 30% off the cost of installing EV chargers.

This proposal follows guidance issued in January that made these tax credits available in about two-thirds of the land. The idea is to ensure that the credits for EV chargers are limited to low-income or non-urban areas, as directed by Congress in the climate law.

The Treasury chose a broad definition for these areas, covering about two-thirds of the country.

Expanding Access and Reducing Pollution

The plan announced Wednesday takes an expansive approach, targeting individual charging ports rather than a single credit for a multi-port installation.

Advocates say these tax credits could play a huge role in expanding the use of EVs and reducing pollution from the transportation sector, which is the single-largest source of U.S. climate-warming emissions.

Katherine García, director of the Sierra Club’s Clean Transportation for All program, appreciates the Treasury’s movement on this incentive. She believes it will help Americans benefit from the EV provisions of the 2022 climate law.

“Together with other EV provisions in the climate law and the 2021 bipartisan infrastructure law, this charging incentive will accelerate the transition to clean vehicles, create good-paying jobs and help our nation meet our climate and clean-air goals,” García said.

Building a National Network

Congress approved $7.5 billion in the 2021 infrastructure law to meet President Joe Biden’s goal of building a national network of 500,000 publicly available chargers by 2030.

As of late last month, there are over 192,000 publicly available charging ports nationwide, more than double the amount in January 2021 when Biden took office.

Albert Gore, executive director of the advocacy group Zero Emission Transportation Association, sees the new tax plan as a boost for chargers where people live and work.

“One of the great things about driving an EV is that drivers can charge while their vehicle is parked, rather than adding another errand to their busy day,” said Gore, the son of former Vice President Al Gore.

EVXL’s Take

This move by the Biden administration is a significant step forward in making EVs more accessible and convenient for everyone. As we see more charging stations pop up across the country, it becomes easier for people to make the switch to electric vehicles.

This not only helps reduce our carbon footprint but also supports the growing EV industry. For more on how Tesla is leading the charge, check out our recent articles on Tesla’s Superchargers.

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