Why New U.S. Treasury Tax Credit Guidance is Welcome News for the EV Industry and Beyond

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) recently unveiled new guidance on the Alternative Fuel Vehicle Refueling Property Credit, a move that can significantly benefit Blink Charging and the EV industry. This announcement is set to lower costs for clean vehicle infrastructure and transportation, marking a pivotal moment for the electric vehicle (EV) charging industry. Here's what you ned to know.

Increased Affordability for EV Infrastructure

Included by Congress in the 2022 Inflation Reduction Act, the Alternative Fuel Vehicle Refueling Property Credit (section 30C) offers a tax credit of up to 30% of the cost of installing qualified alternative fuel vehicle refueling property. For businesses, this credit can be as high as $100,000 per single item of property. This substantial financial incentive will make it more affordable for Blink Charging to expand its network of EV charging stations.

What It Means for Small Business

The new Treasury guidance is also a boon for small businesses looking to invest in EV charging infrastructure. Now small businesses can more easily afford to offer EV charging stations to their customers and employees, enhancing their appeal and competitiveness. This move not only supports the growth of small enterprises but also contributes to the broader adoption of clean energy solutions, creating a more sustainable future for all.

Enhanced Credit for Prevailing Wages and Apprenticeships

Businesses that pay prevailing wages and use registered apprentices for installation can receive an enhanced credit beyond the six percent base credit. This not only supports fair labor practices but also encourages the creation of good-paying jobs, aligning with Blink Charging’s commitment to sustainable and ethical business practices.

Broad Eligibility Across the U.S.

Approximately two-thirds of Americans live in eligible census tracts, which include low-income communities and non-urban areas. This broad eligibility means that Blink Charging can strategically place charging stations in a wide range of locations, from urban neighborhoods to rural areas, ensuring that more Americans have access to EV charging infrastructure.

Support for Energy Storage Solutions

The new guidance also defines energy storage property, including rechargeable electrochemical batteries, as eligible for the 30C credit. This is particularly beneficial for Blink Charging as it allows the company to increase investments in energy storage solutions that can retain cheaper, non-peak hour energy for use during higher-cost peak hours, optimizing operational efficiency and reducing costs.

Long-Term Savings for EV Owners

Treasury’s Office of Economic Policy estimates that EV owners will save between $18,000 to $24,000 over the 15-year lifespan of a vehicle compared to gasoline vehicles, primarily due to lower fuel costs. This significant savings will likely drive more consumers towards EVs, increasing the demand for charging infrastructure provided by companies like Blink Charging.

In short, this announcement from the U.S. Treasury is a game-changer for the EV charging industry. By making it more affordable to install and operate EV charging stations, the Alternative Fuel Vehicle Refueling Property Credit will help the American charging industry expand, create jobs, and support the transition to a clean energy economy. This is a win-win for businesses, consumers, and the environment, positioning Blink Charging at the forefront of the global clean energy movement.

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