The U.S. government will not renew a tax credit for installing home and commercial charging equipment.
The tax credit for chargers ends on December 31, although proponents press Congress to renew it in January. “The timing of this couldn’t be more unfortunate,” Genevieve Cullen, vice president of the Electric Drive Transportation Association, was quoted as saying by USA Today, as the discontinuation of tax credit comes while more electric cars are on the way to be launched.
The credit allows taxpayers to deduct 30 percent of the cost of chargers installed in their garages, up to a maximum of $1,000. The tax break for commercial units is up to $30,000. In 2010, the tax credit was 50 percent as part of the government’s stimulus package. The credit was seen as an incentive for adoption of electric vehicles, as the government seeks to cut carbon dioxide emissions and use of foreign oil. The discontinuation of tax breaks for chargers does not affect the $7,500 tax credit for buying new electric vehicles.
According to GM, loss of the tax credit will have a minimal impact on Volt sales, because about 40% of buyers recharge from their home 110-volt sockets, rather than a special 220-volt charger. Nissan declined to comment on the matter.