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 for Charging Stations
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.
Grant from the IEPA
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.
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.
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 Credit
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.
- 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
IEPA Grants
