Good news for property owners, real estate asset managers, and property managers! In August, Biden signed the Inflation Reduction Act into law which provides federal tax incentives for the electrical infrastructure and installation of Level 2 and Level 3 (DC fast) EV charging stations.
The credit, different than a rebate, will be deducted from the buyer’s federal tax liability at the end of the taxable year in which the system is installed. The program is active through the year 2032 only for non-urban or low-income zones. All other projects must be completed by December 21st, 2022 in order to qualify for the tax credit.
The credit amounts to 30% of the total project cost, capped at $100,000, which more than triple the benefits offered by a similar incentive that is set to expire on December 21st, 2022, which was capped at $30,000. However, as the law is explicitly written, if the property is in an ‘urban area’ or non-low-income area, it will not qualify at all (from 2023-2032).
In addition to the incentives offered for EV charging stations, the Inflation Reduction Act earmarks billions of dollars in subsidies for consumer electric vehicle purchases like Tesla, Nissan Leaf, Chevy Volt, Rivian, Polestar, etc. through a $7,500 credit on new EV purchases (with a smaller credit for used EV purchases).
In addition to the federal incentives encouraging consumers and corporations to adopt EV, there are various additional laws that will drive adoption. For example, Washington states Move Ahead Washington initiative outlaws the sale of any new vehicle that is not fully EV after the year 2030 through the internal combustion ban. And Bill 1793 requires apartment and condominium manager/owners to peruse equitable access to EV assets for their residents.
These incentives and laws will continue to drive EV sales, further incentivizing multifamily, commercial office and retail properties to provide EV charging assets/amenities in their parking areas. Providing EV charging assets increases property value, attract and retains both residential and commercial tenants, and increases traffic at retail shopping centers. Not to mention there is money on the table to help with implementation.
Resound Energy Services™ is the Pacific Northwest’s leading EV charging station installation contractor. With over 2,000 Level 2 and Level 3 ports installed, resound is well equipped to undertake all charging applications from simple level 2 multifamily garages to complex level 3 stations with large amounts of civil work required for the electrical infrastructure and utility engagement.
Resound Energy Services™ offers zero cost “owner operator agreements” where Level 3 chargers are installed at no cost to ownership and Resound Energy Services™ will pay an annual fee to lease stalls. Contractor cost is recouped through end user charging revenue over a 10 year term.