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Business Tax Credits for Electric Vehicle Charging: How Much Can You Get?

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Thinking about installing EV charging stations at your California or Colorado business? The benefits are numerous. For one, EV charging stations can improve the overall convenience and satisfaction of your customers, making them more likely to spend time on-site or return for repeat visits. Second, your efficiency and operating costs can benefit too. On-site EV charging ensures that commercial EVs are always ready for use, eliminating the downtime associated with refueling at off-site locations.

Better still, businesses can take advantage of various government incentives and tax benefits associated with the adoption of electric vehicles, further enhancing their financial returns. In this article, we’ll explore those tax savings by delving into:

Want to future-proof your operations and reduce costs? Get a free custom EV charger installation estimate.

Photon Brothers has licensed electricians available to handle EV charger installations. Contact us today to get expert solar advice on Colorado incentives and California incentives for installing an EV charger on your company’s premises. 

You can also check out our commercial case studies page to learn more about past solar projects, including average 30-year savings!

The Push for Electric Vehicle Adoption

Many government agencies are encouraging businesses to adopt electric vehicles. When you add EVs to your fleet, you reduce your gasoline consumption. This saves your company money and makes it possible to reduce harmful emissions. If you’re interested in qualifying for grants or earning credentials related to sustainability, transitioning to EVs may also help you reach your goals.

Federal Tax Credits

The U.S. government offers the Alternative Fuel Vehicle Refueling Property Credit to business owners who install qualified equipment. If you’re eligible for the federal EV, you’ll get 30% of the hardware and installation costs, up to a limit of $1,000. For example, if it costs you $3,000 to purchase an EV charger and have it installed, you’d qualify for a credit of $900 ($3,000 cost times 30%). If the hardware and installation cost $5,000, you’d get $1,000. You can’t get more than that because the credit has a limit of $1,000.

At Photon Brothers, we use all in-house labor to ensure quality. We also have a 25-year warranty on all labor and parts, along with a 25-year production warranty, which means we guarantee at least 90% efficiency after 25 years.

State and Local Incentives

If you have a business in California, you may qualify for one of the many rebates available through the state’s network of utility companies. The amount of the credit depends on which program you use. For example, Burbank Water and Power offers a rebate of up to $5,000 for the installation of a Level 2 charger or a DC Fast charger. The Los Angeles Department of Water and Power offers a rebate of up to $75,000 for each DC Fast charger. Check with your utility company to find out if you qualify for any of its EV rebate programs. Central Coast residents can also take advantage of the Electrify Your Ride program offered by Central Coast Communities Energy (3CE) and receive up to $2,400 back for a Level 2 charger and installation. 

Colorado has also programs to help business owners reduce the total cost of EV charger installation. For example, Charge Ahead Colorado offers grants for Level 2 chargers and multiple types of DC Fast charger. If you’re interested in a Level 2 charger, you may qualify for a grant ranging from $4,500 to $6,250. DC Fast chargers are more expensive, so the maximum grant amounts are much higher. Your company may qualify for a grant of $35,000 to $70,000 to install one of these chargers.

Other Benefits of Installing EV Charger Stations

Reduced gasoline consumption is one of the most obvious benefits of using electric vehicles. What many business owners don’t realize is that installing EV charger stations also has a positive impact on financial performance. Although charger installation requires an initial investment, you spend less in the long run. For example, you don’t have to fill up your fleet vehicles as often, and you don’t have to perform as much maintenance.

Installing EV chargers may even increase productivity, as employees won’t have to drive around looking for charging stations. Drivers may even be able to travel much farther without stopping, reducing delivery times and increasing customer satisfaction.

Finally, having EV charger stations on your premises may help you create a new revenue stream. If you have a customer-facing business, you can charge a fee to use them. You may even be able to persuade other business owners to charge their EVs with your equipment, giving you another opportunity to earn money. No matter how you plan to use your EV chargers, Photon Brothers is ready to offer expert solar advice and help you choose equipment that qualifies for each EV charger business tax credit, rebate, or grant program.

Are you ready to experience the benefits of EV charging at your business?

At Photon Brothers, we understand the requirements for the federal tax credit, as well as multiple Colorado incentives and California incentives. Call us today to learn more about our experience with EV charger installations for commercial outfits of all sizes: (720) 370‑3344 (Colorado) and (805) 351‑3371 (California). You can also click below to book a free custom estimate today.

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