EV home charging equipment installed on 06/30/2022

Forum|Forum|3 years ago
September 28, 2022
2 replies
48 views

I got my charger installed on 6/30/2022, before the IRA was passed. Is the 30% credit (up to $1000) retroactive till 1/1/2022 or valid only for installations after 8/16/2022?

Best answer by Irish22_CPA

What is the Tax Write Off for EV Chargers?

The federal tax credit for electric vehicle chargers originally expired on December 31, 2021. However, the Inflation Reduction Act’s Alternative Fuel Refueling Property tax credit extends the EV charger tax incentive ten years—through December 31, 2032.

So, what does that mean for you? Essentially, if you install a home EV charging station, the tax credit under the Inflation Reduction Act is 30% of the cost of hardware and installation, up to $1,000.

So a charger station purchased anytime during 2022, even before the legislation was passed, qualifies for the extended 30% credit.

Good news for you!

Irish22_CPAAnswer

Level 4

What is the Tax Write Off for EV Chargers?

So a charger station purchased anytime during 2022, even before the legislation was passed, qualifies for the extended 30% credit.

Good news for you!

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AHancock

Level 3

So why isn't that reflected already in the 2022 Turbotax software? See Note:

Note: The Energy-Efficent Vehicle Charging Station Credit is a "temporary" tax provision. At the time of this release of TurboTax, this credit has expired and is no longer allowed in 2022.

However, temporary credits that have expired often are renewed retroactively, sometimes long after the end of the tax year in which they expired. We continue to collect info about expired credits in TurboTax, but we will not include this information in your return unless and until the expired credit is renewed. If this credit is renewed, we will add it to your return if applicable, as well as help file an amendment if you have already filed without this credit

SteamTrain

Level 15

@AHancock

Yeah, it would be nice if TTX could have updated the software to include the changes made months ago...BUT they don't include the new tax rules in the software until a week or two AFTER the IRS updates their actual form 8911 for 2022....and the IRS still hasn't issued the official 2022 form 8911, nor it's instructions yet (appears to be scheduled for December some time). Thus, TTX may not have all that integrated until sometime around late Dec or the first of January.

Draft Tax Forms | Internal Revenue Service (irs.gov)

Same thing goes for any IRS forms needed that are also in Draft Form now (like form 5695 for home energy credits). TTX doesn't update the software until the IRS releases the new form with any new tax rules...and instead continues to use last year's tax rules until those forms are out of Draft Mode. Just the way it is....every year.

____________________________

Early releases of TTX software require MANY updates before they are anywhere near being accurate. Late Jan-to-mid Feb at the earliest. Folks who start prepping their actual entries before that date, for anything more than really simple income items, they get uselessly frustrated (Every Year !! without fail) as a result, I myself am unlikely to bother getting/loading the software until sometime in January.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

Esther M

Level 4

Prior to the Inflation Reduction Act a tax credit was available for electric charging stations put in place by businesses and main homes prior to January 1, 2022. The new law extends the credit for charging stations put in service before January 1, 2033. The new law extends the time, the credit is the smaller of 30% of the property’s cost or $1,000. So you're covered!

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