Commercial EV Charger Incentives in Chicago

Electric vehicles (EVs) are gradually changing our world, and businesses are taking notice. As more and more people adopt EVs, the demand for reliable and convenient EV infrastructure is constantly growing. Thus, drivers are also looking for free EV charging in Chicago. As a business, you can provide this service to your employees or regular customers. Catering early to a growing EV driver base will promote your business as a tech pioneer. Installing your own commercial EV charging station will demonstrate your commitment to a greener future and attract clients who prioritize environmental responsibility. It will also benefit your brand image in the long run. Today, you’ll learn about the EV charger incentives for Chicago-based businesses. These programs can lower the price of your initial investment, so this eco-friendly purchase pays off even faster than you think. Read on to learn about buying the best commercial EV charging stations in Chicago for your business without breaking the bank.

Government Programs: Commercial EV Charging Station Incentives

Here are some of the biggest EV charging station incentives in the Chicago, Illinois area that may help you save money:

Federal Tax Credit

Tax credits are available in two tiers. Tier 1 credits are offered to EV, EV components, and EV charging station manufacturers investing no less than $20 million and generating at least 50 new jobs in Illinois over four years. Tier 2 credits are available to EV manufacturers investing $1.5 billion, $300 million, and $500 million and retaining or creating a specified number of jobs. See the U.S. Department of Energy website for more information

IEPA Grant

The Illinois Environmental Protection Agency (IEPA) has made transportation electrification subsidies available.

Rebate awards can pay up to 80% of qualified project costs. Additional incentives are offered for EV charging stations installed in underserved or environmental justice communities. See the IEPA Climate and Equitable Jobs Act website for more information.

Electric Fleet Conversion

The IEPA encourages car buyers to convert to environmentally friendly options by offering additional discounts. Being an Illinois resident is a must to acquire a new or used EV. Timeframes, conditions, and rebate amounts are the following:

• July 1, 2022 – June 30, 2026       $4,000
• July 1, 2026 – June 30, 2027       $2,000
• Beginning July 1, 2028                  $1,500
• Purchase of electric motorcycle  $1,500

See the IEPA EV Rebate website for more information.

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The first option applies to everyone who installed their EV charger from 2023 to 2035. It includes both residential and commercial cases. It won’t reduce the cost of a commercial EV charging station, but it can lower your tax load. The IEPA grants are incentives from the Illinois Environmental Protection Agency. They usually offer multiple grants, so you can find one that suits you better. In the electric fleet convention, we’ve gathered other EV charging station incentives that can indirectly help commercial EV installers.

Federal Tax Credits

There are three types of EV-related federal tax credits available for businesses in Chicago. The first and primary option is the Alternative Fuel Vehicle Refueling Property Credit (often called the 30C Credit or home EV charging tax credit). However, it still works even with commercial stations.

This EV charger tax credit provides a 30% credit toward purchasing and installing qualified EV charging infrastructure. AFVRP’s maximum limit is $100,000 per single charger, meaning you can install expensive DC chargers onto your parking lot. Before 2023, the maximum EV charger credit was capped at $30,000 per location.

The current limit applies to stations installed between January 1, 2023, and December 31, 2032. You can claim this tax credit for an EV charger on your federal tax return using Form 8911. However, we recommend you consult with your accountant to double-check your eligibility.

The Commercial Clean Vehicle Credit is another incentive for purchasing new electric vehicles (EVs) and fuel cell electric vehicles (FCEVs) for commercial use. It covers 30% of fully electric cars and 15% of hybrid vehicle purchases. The maximum credit is $7,500 for vehicles with a gross weight rating under 14,000 pounds and $40,000 for larger vehicles. Since January 1, 2024, claiming the credit requires the dealer to submit a “time-of-sale” report to the IRS upon purchase.

Source: Alternative Fuels Data Center

The third type of EV charging incentives applies only to EV and EV station manufacturers. These tax credits are available in two tiers. Tier 1 credits are offered to EV, EV components, and charging station manufacturers that invest a minimum of $20 million and create at least 50 new jobs within four years in Illinois. On the other hand, Tier 2 of this EV Charging credit consists of more ambiguous businesses:

• Commercial EV charging station manufacturers that invest at least $1.5 billion and create at least 500 jobs within five years in Illinois
• EV parts manufacturers that invest at least $300 million and form at least 150 jobs within five years in Illinois
• Manufacturers that convert existing facilities for EV and EV parts production that invest a minimum of $500 million and maintain at least 800 full-time jobs within five years in Illinois

The final commercial EV charging station tax credit amount varies, and additional eligibility requirements may apply. Businesses located in priority areas, such as underserved communities or communities in energy transition areas, can receive an increase in tax credits.

IEPA Grants

Source: IEPA

The Illinois Environmental Protection Agency (IEPA) offers grants through its Driving a Cleaner Illinois Program. This initiative aims to support the installation of commercial EV charging stations in Chicago and Illinois. Grants from this program can cover up to 80% of the eligible project costs for installing Level 2 and DC fast chargers (DCFCs).  There’s a maximum award of $80,000 per charger. This can significantly lower the commercial EV charging station cost, making them more appealing to small and mid-size businesses.  The Driving a Cleaner Illinois Program prioritizes investment in medium and heavy-duty vehicle stations. Considering those cars have larger batteries, the potential commercial EV charging station profit from Level 2 and Level 3 DC chargers can exceed even the boldest expectations. DCFC EV charger rebate offers additional rebates for stations deployed in underserved and environmental justice communities. Beware that they add new grants occasionally. You should regularly check the IEPA website to be aware of the latest commercial solar EV charging station incentives from this agency.

Electric Fleet Conversion

Grant possibilities change annually based on the financial year. So, the best time to look for new grant opportunities and tax benefits for EV charging station commercial properties is late summer or the beginning of the fall. We recommend you explore IEPA and DOE (Federal Department of Energy) sites to find suitable grants. You can also open the grants.gov site to look for additional EV charging station incentives by state that may suit your business. In addition to the 30% commercial and home EV charger tax credit, Illinois has multiple programs offering rebates for commercial EV charger installations. One of the most well-known is the ComEd Charge Ahead Business Rebate. This program by ComEd, a major utility provider in Illinois, offers rebates to businesses and public sector organizations for purchasing electric vehicles and installing EV charging stations Chicago.  The total program budget for 2024 is $87 million. So, hurry up, buy a commercial EV charging station, and ask for this rebate before it ends. If your business is in rural areas near Chicago, R3 areas, or environmental justice communities, you can ask for additional incentives. Ask your local municipality for potential rebates and other stimuli for Chicago EV charging stations.

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Economic Advantages of Investing in Commercial EV Charging Stations Infrastructure

As EV adoption accelerates, the demand for convenient and reliable charging stations will surge. Businesses that install charging stations can position themselves to attract customers who own EVs and are looking for places to charge while they shop, dine, or work. It will increase traffic, sales, and customer loyalty, so your initial investment will naturally pay off in the long term.  By being early adopters of EV charging infrastructure, businesses can establish themselves as sustainability pioneers within their communities. It can give them a competitive edge and attract customers who prioritize eco-conscious practices. Investing in commercial EV charging station solutions can enhance a company’s brand image and reputation for innovation and sustainability. This optimistic perception can lead to increased brand loyalty and customer satisfaction. A commercial solar-powered EV charging station also helps you save money while becoming an even more eco-friendly