If you’ve been thinking about installing an electric vehicle (EV) charger at your home or business, now is the time to act.

A valuable federal tax incentive for EV charging equipment—the Alternative Fuel Vehicle Refueling Property (AFVRP) Credit—is set to expire soon. Under current law, the credit ends for property placed in service after June 30, 2026, leaving just seven months to take advantage of potentially significant tax savings.

Here’s what you need to know—and why waiting could cost you.

The Opportunity: A Generous Federal Tax Credit

The AFVRP credit allows individuals and businesses to claim a federal income tax credit equal to up to 30% of the cost of qualifying EV charging equipment.

However, the details matter. Depending on how and where the equipment is used, the value of the credit can range from modest to substantial.

For Homeowners

• Credit equals 30% of qualified costs, capped at $1,000

• Equipment must be installed at your principal residence

• The residence must be located in an eligible census tract

• Typical residential chargers cost $1,000–$3,000, making this a meaningful, though limited, benefit

For Businesses

• Credit applies to depreciable property used for business purposes

• Maximum credit of $100,000 per item of qualifying property

• Standard credit rate is 6%

• Credit increases to 30% if wage and apprenticeship requirements are met

• No overall limit on the number of qualifying items—large installations can generate six-figure credits

A Critical Requirement: Eligible Census Tracts

One of the most overlooked—but essential—rules is location.

To qualify, EV charging equipment must be placed in service in an eligible census tract, defined as either:

• A low-income community, or

• A non-urban (rural) census tract

The good news? Approximately 97% of U.S. land area and 62% of the population fall within eligible tracts. Still, verification is required before claiming the credit.

When Business and Personal Use Overlap

If charging equipment is installed at a residence but used for both personal and business purposes, the credit must be apportioned.

• More than 50% business use: The credit is treated entirely as a general business credit.

• 50% or less business use: The credit is split between business and personal portions, each subject to its own limits.

This allocation can significantly affect the final credit amount, making careful planning essential.

What Qualifies as EV Refueling Property?

Qualified property includes more than just the charger itself. Eligible costs may include:

• EV charging stations and charging ports

• Pedestals and mounting hardware

• Electrical panels, conduit, and wiring required to operate the charger

• Smart charge management systems

• Bidirectional charging equipment

To qualify, the property must be:

• Original use by the taxpayer

• Functionally interdependent

• Integral to recharging electric vehicles

The Big Payoff: Commercial Installations

For businesses installing multiple chargers—such as fleet operators, warehouses, apartment complexes, or retail locations—the credit can be substantial.

Because each charging port can qualify as a separate item of property, costs for chargers, electrical infrastructure, and related systems can be allocated across multiple ports. When the 30% credit rate applies, total credits can easily exceed $200,000 for larger projects.

How to Claim the Credit

Claiming the AFVRP credit involves IRS Form 8911:

• Business portion flows to Form 3800 (General Business Credit)

• Personal portion flows to Schedule 3 of Form 1040

Be aware:

• The basis of the property must be reduced by the amount of the credit

• Future IRS regulations may require credit recapture in certain situations

The Clock Is Ticking—Act Now

The AFVRP credit remains a powerful incentive—but only for a limited time. With the June 30, 2026 deadline fast approaching, delaying installation could mean losing the credit entirely.

Key Takeaways

• Up to 30% federal tax credit for EV charging equipment

• $1,000 cap for personal use, $100,000 per item for business use

• Location and wage requirements can make or break eligibility

• Large commercial installations can generate significant tax savings

• Equipment must be placed in service before July 1, 2026

If you’re considering installing EV charging equipment, now is the time to plan, verify eligibility, and move forward. Waiting could turn a valuable tax benefit into a missed opportunity.