Alternative Fuel Vehicle Refueling Property Tax Credit (Personal)
You can claim a 30% tax credit up to $1,000 for installing eligible electric vehicle charging equipment at your home. Submit IRS Form 5695 when you file your taxes to claim the credit, and the qualifying amount will reduce your federal taxes or increase your refund. Note that this credit expires for equipment installed after June 30, 2026.
This credit applies to Level 2 EV charging equipment installed at residential properties, including single-family and multifamily homes. The 30% credit up to $1,000 does not require meeting commercial labor standards, making it accessible for residential installations. If your customer is a nonprofit, government entity, or rural electric cooperative, they may be able to monetize the credit directly or transfer it to another party.
This personal tax credit allows homeowners to claim 30% of installation costs up to $1,000 for qualifying EV charging equipment through IRS Form 5695. The Inflation Reduction Act enables direct payment options for eligible nonprofits, tribal governments, and rural electric cooperatives, and permits one-time transfers of credits between unrelated parties. The credit sunset was extended to June 30, 2026, after initially being set to expire December 31, 2032 under the original OBBB legislation.
Program details
- Program ID
- 22475
- Last updated
- 7/25/2025
Eligibility
- Sectors
- residential multifamily residential low income residential
- Technologies
- level-2 electric vehicle service equipment
Program summary
Note: Section 70504 of The One Big Beautiful Bill (OBBB) repealed this tax credit for equipment placed in service after June 30, 2026.
Qualified alternative fuel vehicle refueling equipment not subject to depreciation allowances, including electric vehicle charging equipment, is eligible for a tax credit of 30% up to $1,000. These projects do not have to meet the same labor standards as commercial projects in order to qualify for the full 30% tax credit.
Section 13801 of The Inflation Reduction Act of 2022 also established procedures for other parties to monetize certain tax credits, including this one, for equipment placed in service on or after January 1, 2023 and through December 31, 2032. The expiration date was later changed to June 30, 2026.
The direct pay option allows non-taxable entities to directly monetize certain tax credits. The provisions apply to nonprofits, a state or political subdivision thereof, the Tennessee Valley Authority, Indian tribal governments (as defined in Section 30D(g)(9)), any Alaska Native Corporation (as defined in Section 3 of the Alaska Native Claims Settlement Act), or any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. Such applicable entities can elect to be treated as having made a tax payment equal to the value of the tax credit they would otherwise be eligible to claim. The entity can then claim a refund for the excess taxes they are deemed to have paid. The option effectively makes this tax credit refundable for these entities.
The act also allows eligible taxpayers to transfer all or a portion of their eligible tax credits to an unrelated taxpayer. Transfers must be reported to IRS and only one transfer is permitted. Must be elected no later than the due date for tax filing for the tax year the tax credit is claimed.
Contact & resources
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
