States Increase Incentives for Electric Vehicle Charging Stations

Charging network expands beyond the “West Coast Electric Highway,” thanks to tax breaks.

December 18, 2014

WASHINGTON – An increasing number of states are offering tax credits as an incentive to create networks of charging stations for electric vehicles (EV). As more EV models have been introduced over the past several years — including plug-in electric vehicles, battery electric vehicles and plug-in hybrid electric vehicles — have been introduced in the light-duty vehicle market. EVs are limited by driving range, which is related to battery capacity, and can usually travel between 60 and 200 miles before recharging. Therefore, charging infrastructure is crucial to the success of these kinds of vehicles.

Since 2008, Washington and Oregon have established plans to facilitate EV travel by installing recharging stations at convenient intervals on major travel corridors, resulting in a network of fast chargers every 25 to 50 miles along the 585 miles of I-5 running through the two states. California also plans to add charging stations along its length of I-5, extending what state governments have called the “West Coast Electric Highway” all the way to Mexico.

Now, several other states are offering incentives for EV infrastructure, including:

  • Maryland offers incentives for PEV recharging equipment: a tax credit of 20% of the cost, up to $400, and a rebate of 50% of the cost, up to $900 for individuals, $5,000 for businesses and $7,500 for retail gas stations.
  • The District of Columbia offers a tax credit of 50% of the cost of installing a charging station, up to $1,000 for residences and $10,000 for publicly accessible stations.
  • Arizona offers a $75 tax credit for installing charging equipment.
  • Louisiana offers a 50% tax credit for the cost of charging equipment.
  • Missouri’s tax credit covers 20% of the cost of installing fueling station, up to $15,000 for individuals and $20,000 for businesses.
  • New York’s income tax credit of 50% of the cost of charging equipment covers up to $5,000.
  • Oklahoma has a 75% tax credit for the cost of commercial charging infrastructure.
  • Utah has made electricity used for vehicles exempt from taxes.
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