Here is info taken from Turbo Tax software just to explain it.
Charging stations for plug-in electric vehicles qualify for this credit.
You can claim this credit if you installed a charging or refueling station at your home.
You can claim this credit if you installed a charging or refueling station at your business location.
The following conditions must be met to qualify for this credit:
- You started using the station in the current tax year (2022).
- You are the original owner of the station.
- The station is used primarily in the United States.
- The station is installed at a residential or business location.
Eligible Expenses to Claim
The cost of the charging or fueling station include:
- The amount you paid to purchase the station
- The fees you paid to have the station installed in your home or business location (i.e., electrician fees).
- Permit fees
- Any city, local, or state fees that you were required to pay in order to be able to install your station.
Example: You purchased your charging station for $850, paid an electrician $2,000 for installation and hardware. You would enter total cost as $2,850 for your station.
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.
Example: If you owe $500 in taxes, and you receive a credit of $1,000, the tax you owe is reduced to zero, and the remaining $500 is lost. You won't receive a refund for the remaining $500.
- If you pay alternative minimum tax (AMT) you will not be able to claim this credit. If you are close to paying AMT, this credit may be limited by your tentative minimum tax as calculated on Form 6251, Alternative Minimum Tax - Individuals, line 33.
Limitations of this credit - Business Use
- The business portion of the credit is part of Form 3800, General Business Credit, so any unused amount of the credit is not lost, but is eligible for the carryback/carryforward provisions of the general business credit.
- If you use this station for business and claim a depreciation deduction, you must subtract the credit amount when TurboTax asks you to enter the cost of the station in the Business (Schedule C) or Farm section of the program.
Example: You paid $5,000 to purchase and install your station at your business location. The station is eligible for a credit of $1,500. To claim the depreciation deduction, you must subtract this credit amount when entering the cost of the station in the Business or Farm section of TurboTax.
You may have to recapture some or all of the credit if the station no longer qualifies for the credit.
This credit is claimed on Form 8911.