Federal Tax Deduction Not Only For Car But Also Charging Equipment Install?

Federal Tax Deduction Not Only For Car But Also Charging Equipment Install?

Any accountants or tax lawyers out there? The way I read the law, we could theoretically claim a tax credit of 30% of the cost, up to $1,000, for "fueling equipment". So, if we separately purchase the HPWC after the fact, and get the tax credit for it plus the install. Is this right? See below:

Alternative Fuel Infrastructure Tax Credit
Fueling equipment for natural gas, liquefied petroleum gas (propane), electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed between January 1, 2006, and December 31, 2013, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Consumers who purchased qualified residential fueling equipment prior to December 31, 2013, may receive a tax credit of up to $1,000. Unused credits that qualify as general business tax credits, as defined by the Internal Revenue Service (IRS), may be carried backward one year and carried forward 20 years. (Reference Public Law 112-240 and 26 U.S. Code 30C and 38)

noel.smyth | 7 février 2013

there must be more to it as i put the cost into turbo tax and got no tax benefit for it. TT didn't tell me why i didn't qualify though... | 7 février 2013

I pointed this out to my accountants & they thought I would get a 30% credit on my NEMA 14-50 install at my home.

rlpm | 7 février 2013

I heard you can't take the EVSE credit if you pay AMT.

queni | 7 février 2013

Be sure to check it out. Before our Leaf came we had the charging station installed. In 2010 if you got it done before 12/31/10 they were offering 50% up to $2000. We didn't even get the Leaf until May 2011. Well worth it.
There is form to fill out of course. Good luck.

stevenmaifert | 8 février 2013

This could explain why these forms and associated credits are not yet available in 2012 tax preparation software.

noel.smyth | 8 février 2013

that explains it - i finished my taxes in TT but it says I cannot file yet until they get the final updates from the irs.

fluxemag | 8 février 2013

The IRS is way behind this year from what I can tell. They don't even have the 2013 withholding calculator up yet.

I believe it's 30% of the install cost up to a certain amount.

peahl | 8 février 2013

That is all correct, the IRS is not even accepting Tax returns yet.

stevenmaifert | 8 février 2013

Actually, the IRS is accepting tax returns (as of Jan 30) as long as it doesn't require one of the forms that isn't ready yet. I e-filed my sister's last Sunday, and her refund is already in the queue.

Another heads up. For those who itemize, the Fiscal Cliff legislation restored the state sales tax deduction in lieu of state income tax deduction for tax years 2012 and 2013. After you run the IRS calculator for your allowable sales tax deduction, you are allowed to add the sales tax on big ticket items (cars, boats, motor homes, planes) on top of that. I paid over $6K CA sales tax on my Model S and will make out better that way for 2012 taxes.

akikiki | 8 février 2013

I contacted my tax person. They are very good. She told me the charging station federal tax credit is 30% up to $1,000 and was renewed for purchases in 2013. Got for it.

DouglasR | 8 février 2013

But as mentioned above, the credit cannot be used against the AMT.

dqb | 8 février 2013

I understood it to be that the credit is for expenses on the install, but using the install date not the payment date. So paying for the HPWC in 2012 but installing in 2013 means claiming next least these are my dates.

Schlermie | 16 mars 2013

I just went through this with TurboTax. You get $0 of this credit if the charging station is only used for personal use. If you check the box that says, "I use this station for a business vehicle", then it asks you to enter your "Business Use Percentage". The resulting tax credit is:

(Cost_of_charging_station) * (30%) * (Business_use_percentage)

DouglasR | 16 mars 2013


If that is what Turbo Tax says, it is incorrect, or perhaps you filled it out incorrectly.

hsadler | 16 mars 2013

Just checked Turbo Tax and the requirements specifically state that if you pay AMT, you are not eligible for the Charging Station Credit.
If you don't pay AMT, then any equipment whose sole purpose is to charge your Tesla and is located on your home's property, is eligible for the credit. (30% of cost up to $1000. So if you paid $2700, then your credit amount would be $810. That amount will be deducted from what you paid in tax for the year. If for some reason you paid less than the $810, you won't get the full amount. Disregard any amount you may owe or get back at the end of the year - it goes by your actual tax obligation.)

No, I'm not a tax accountant - so feel free to correct me.

DonS | 12 février 2014

Going through this process for 2013 taxes, I've found that the "Alternative Fuel Vehicle Refueling Property Credit" can be disallowed even if you do not hit the AMT. After multiple readings of the extremely complicated instructions, I've concluded that the $7500 tax credit for the car is subtracted BEFORE figuring out whether you can take the Refueling credit. You still have to go through all the AMT calculations and use a value off the AMT form for the Refueling form, even if the AMT result is 0. Lots of people are going to be annoyed (myself included) when they figure out the Refueling tax credit is very hard to use if you also bought the car in the same year.

j_iliz | 31 mars 2014

Turbo tax has a "Read these important credit qualifications" link in the associated part of their page.

The AMT stipulation is listed as people have posted earlier. But there is this other item:

Limitations of this credit - Personal Use
- If your credit is bigger than what you owe in taxes, the taxes you owe are reduced to zero, and the rest of your credit is lost.

The way I read this is that those who have a refund coming dont qualify for the credit. The credit can help zero out your tax liability but not contribute to any positive refund you might have coming. This stinks.

shop | 31 mars 2014

No, it has nothing to do with refunds. It is talking about your total tax liability. Ie the total amount you owed in taxes for 2013. Many salaried people will have had slightly more tax deducted from paychecks than what they truly owe the govt, but that has no bearing on it.

AmpedRealtor | 1 avril 2014

If the car was purchased 100% for business, then the charger is used 100% for business as well. Tax credits aside, can the $1,200 be viewed as a Section 179 Deduction?

DTsea | 1 avril 2014

Rlpm is right. If you owe AMT you cant claim credit on charging equipment.

TomServo | 1 avril 2014

I received the full $7500 for the purchase of our second Volt, but when my tax guy tried to claim the EVSE credit he said I hit the AMT and couldn't claim it. Bummer. But I did get the federal $7500, Illinois $3914.50 and $9K off MSRP from the dealer putting me OTD for $22,600. Looking at a Tesla MS next year after they get their SC installed in the St Louis metro area.

j_iliz | 2 avril 2014

OK, I spent some time on this and have things figured out why some claim to being able to leverage the Personal Charging Station Credit (PCSC) and others not.

The summary is, a person will only benefit from the PCSC if their Tax Before any Credits (TBC) [line 1040 line 44) is greater than their theoretical AMT by $7500. That is, for every dollar (TBC-$7500) > AMT, you gain the same for the credit until you reach the $7500 maximum.

This is what it all boils down to.

Turbo tax has got it right. They just dont explain the circumstances very well why the credit washes away dependent on ones tax liability with respect to the AMT.

DTsea | 3 avril 2014

If you look in Turbotax at Forms view you can see the AMT part.

j_iliz | 3 avril 2014

I made an error in my last post. It says: for every dollar (TBC-$7500) > AMT, you gain the same for the credit until you reach the $7500 maximum.

It should have said: you gain the same for the credit until you reach the 30% station+install price of the unit.

Czech | 3 avril 2014

Maybe someone that knows a little more about taxes can help with this I had 7900 with held last year in taxes and will have at least that much or more withheld this year. I just bought a Chevy volt for my stepping stone for my MX. So the way I see it I would only have to pay 400 dollars in taxes this year. So I would assume that I would get back the 7500 dollars.

BobN @US-CA-SoCal | 3 avril 2014

Not a tax expert, but I believe the tax credit is a function of battery size or something. So for example my old Plug-In Prius yielded much less than $7500. I disrecall exactly how much. Don't count on the full $7500, but obviouly I defer to those who know what they're talking about :-)

Czech | 3 avril 2014


You are correct that it depends on battery size the chevy volt meets the requirement for the full 7500 tax credit.

BobN @US-CA-SoCal | 3 avril 2014

Gotcha. Thanks. Sorry to distract the thread.