~ Author – Dylan Lapham, Deluzio & Company Staff Accountant I~
Already own an electric vehicle or thinking about purchasing one? Installing an at home charging station? The Alternative Fuel Vehicle Refueling Property Credit (AFVRPC) is back for all taxpayers who qualify. The AFVRPC, also referred to as a Section 30C tax credit, has been extended and will not expire until 2032.
To qualify for an AFVRPC, it is important to note that:
1. An EV charger must be installed at your primary residence
located inside the United States.
2. You must be the original user of the charger.
3. You must have placed the charging system in service
during the tax year in which you are claiming the AFVRPC.
The tax credit equals 30% of the cost for hardware and installation, up to a maximum credit of $1,000. This is a one-time credit and is nonrefundable. The unused personal portion of the tax credit cannot be carried forward or back to other tax years. Taxpayers filing Married Filing Jointly (MFJ) can only qualify for one AFVRPC.
Several states, such as New York and Arizona, also offer rebates for installation of an EV charger. Often, the taxpayer can qualify for this rebate as well as the AFVRPC in the same year. Pennsylvania has yet to put into effect a universal rebate system. Please feel free to contact our office for additional information.