Fed Incentives: Inflation Reduction Act

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EV Charging Infrastructure Tax Credits




Current Status

The federal tax credit for EV chargers, the alternative fuel vehicle refueling property credit (Section 30C), ended for property placed in service after June 30, 2026. The One Big Beautiful Bill Act (OBBBA, Public Law 119-21), signed July 4, 2025, set that end date. Property placed in service by June 30, 2026 is still claimed on 2026 returns using Form 8911. Nothing replaced the credit.

The two federal charging grant programs are in different positions: National Electric Vehicle Infrastructure (NEVI) formula funds are flowing under a court order, while Charging and Fueling Infrastructure (CFI) grant payments are paused and in litigation.

Program Status Key Date
Charger credit (30C) Ended In service by June 30, 2026
NEVI formula funds Active under court order Final judgment Jan 2026
CFI grants Paused, in litigation No FY2026 funding notice

What the Charger Credit Was

Under the Inflation Reduction Act, Section 30C covered the cost of charging hardware and installation for homes and businesses. The property had to be in an eligible census tract (low-income or non-urban).

Residential

For individuals the credit was 30% of cost, capped at $1,000.

Business and Government

For businesses the credit was 6% of cost, or 30% if prevailing wage and apprenticeship requirements were met, capped at $100,000 per item.

NEVI Formula Program

Under the original NEVI rules, federal funds covered up to 80% of project costs for stations that:

  • Were within 1 mile of a designated alternative fuel corridor (AFC) interstate or highway
  • Supported Level 3 DC fast charging (DCFC)
  • Could charge four vehicles at 150 kW at the same time
  • Covered the remaining 20% of project costs

NEVI Status, October 2026

  • February 2025: The Federal Highway Administration (FHWA) rescinded its guidance and suspended state plans.
  • August 11, 2025: FHWA issued revised interim final guidance and the pause ended.
  • January 2026: Final judgment in Washington v. DOT (W.D. Wash., order dated January 23, 2026) bars DOT from suspending or revoking approved state plans, or withholding funds for reasons outside the Infrastructure Investment and Jobs Act (IIJA) and its regulations.
  • Funding: $4.2 billion has been made available since FY2022; $1.4 billion was obligated as of December 31, 2025. FY2026, the last formula year, was apportioned October 1, 2025. About 183 NEVI-funded stations are open in 20 states.
  • February 2026: The Consolidated Appropriations Act, 2026 (Public Law 119-75) moved about $504 million of unobligated NEVI formula funds, plus $75 million and $300 million from set-asides.
  • April 3, 2026: The FY2027 budget request proposes canceling $4.2 billion in unobligated NEVI and CFI funds.
  • September 30, 2026: The IIJA authorization expired. A continuing resolution extends surface transportation programs to December 11, 2026; its specific effect on NEVI is not yet clear.

CFI Discretionary Grants

CFI awarded $1.8 billion across three rounds, covering 147 projects. The last awards were made in January 2025.

  • Disbursements were still paused as of June 16, 2026.
  • California v. DOT was filed December 16, 2025.
  • In March 2026, four states amended a lawsuit over an Office of Management and Budget (OMB) directive to cancel $135 million in CFI grants.
  • $700 million authorized for FY2026 has no notice of funding opportunity.

Key Dates

  • July 4, 2025: OBBBA signed.
  • June 30, 2026: Last date charging property could be placed in service and qualify for 30C.
  • December 11, 2026: End of the current surface transportation extension.

What Still Applies

NEVI-funded stations continue to open under approved state plans. Some states run their own charging incentives; see State EV Laws & Initiatives. For the broader build-out, see Charging Infrastructure.

Sources


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