At the beginning of the year I would have never predicted we could accomplish so much for plug-in vehicles at the Federal level. As usual the year starts with hopes and dreams, as well as fears. Our number one legislative priority in Congress is always protecting (and if possible expanding) the Federal Tax Credit for plug-in vehicles. We spend a lot of time educating legislators across the country and in Congress on why EVs make so much sense but it is often an uphill battle.
This year we were able to queue up a number of initiatives, but then had to wait until the last moments of this Congress to see if they would be included and become law. We do much work behind the scenes to reach votes like we did on the transportation bill that passed on 12/3/15 and the omnibus bill which passed on 12/18/15.
There were two important victories for EVs included in the omnibus bill that Congress passed and the President signed on Friday December 18, 2015. These are both things that Plug In America has been aggressively advocating for in Washington, DC this year as part of our policy work. The bill included a 30% Federal tax credit for installing EV charging equipment and 10% Federal tax credit for buying an electric motorcycle, both retroactively for 2015 through the end of 2016. If you would like to thank Congress and the President for supporting electric vehicle legislation, we have set a page where you can send them an email.
Here are some specifics about each of the tax provisions:
The tax credit for EV charging equipment is officially called the Alternative Refueling Tax Credit (IRS Section 30(C)):
For Consumers, this allows for a 30% tax credit up to a total of $1,000 on EV charging equipment, including installation.*
Purchase an EVSE in either 2015 or 2016 and you can receive a tax credit of up to $1,000.
If you are a business you can receive a 30% tax credit up to $30,000. This tax credit is valid for 2015 (retroactively) and all of 2016.
The IRS will provide new forms for this tax credit in early 2016, however you can see the 2014 form here.
The Federal Tax Credit for e-motorcycles, also known as the 2-wheeled Plug -in tax credit (IRS Section 30(D)g), was also included in the tax extenders deal.
It covers 10% of the purchase price up to a maximum of $2,500.* The credit only applies to street legal motorcycles with 2-wheels that can go over 45 mph.
The federal tax credit is available in all 50 US states and applies to motorcycles purchased in both 2015 (retroactive) and 2016.
The IRS will provide new forms for this tax credit in early 2016, however you can see the 2014 form here.
As part of the transportation bill, Plug In America drove for a nationwide corridor of EV fast chargers, advocated for allowing federal employees to charge their electric vehicles at work, and helped to keep more EV road taxes out of the bill.
Everyday we continue to advocate for EV drivers to make sure your voices are heard.
So if you installed an EV charger or bought an electric motorcycle in 2015, we just got you a huge tax credit, and if you have been thinking about either of those things, then 2016 is your opportunity to make a purchase and get a nice tax credit.
And remember we always need more support for our policy efforts. Your donation will help us accomplish even more for electric vehicles in 2016!
Jay Friedland
Senior Policy Advisor – Plug In America
*These are true tax credits and not a tax deduction. It reduces your tax liability. Please note this information does not constitute tax advice, please consult your tax advisor, attorney, or accountant for specific details on how to claim these tax benefits. The IRS will be providing final forms and instructions for these tax incentives later in 2016.
Photo Credit: BMW Group PressClub USA
