EV Plug-in Credit Set to Expire on June 30, 2026: Have You Claimed Your Credit?
A looming deadline is coming for anyone thinking about adding a charging station to their personal residence or for their dental practice. As we see electric vehicles become more and more popular on the roadways, charging stations will soon gravitate in that same direction. Many of our clients both individual and dental have pulled the trigger on purchasing an EV but may not have considered the added benefit of installing a charging station. If you’ve been on the fence about installing a charging station, whether it be for your dental office or at your personal residence, the clock is officially ticking.
EVs Fit Naturally into a Modern Dental Brand
For dental practices, the installment of a charging station can signal:
- A forward-thinking, tech-driven brand.
- A commitment to the environment.
- Added convenience benefit to staff and patients who drive EV’s who can use the office charging station(s).
In a competitive market, these details matter.
Who can Claim the Credit:
Basic IRS guidelines indicate this credit is available to individuals and practice owners who install qualified refueling or recharging property, including electric vehicle charging equipment, in an eligible location before June 30, 2026.
Amount of Credit:
Individuals:
The IRS allows for individuals to buy and place in service at your main home from January 1, 2023, to June 30th, 2026, a plug in station. The credit equals 30% of the cost of the property up to a maximum credit of $1,000 per item (each charging port, fuel dispenser, or storage property).
Business/ practice owners:
The IRS allows qualified property placed in service at a business or organization from January 1, 2023, to June 30, 2026, the credit equals 6% of the cost of the property up to a maximum credit of $100,000 per item (each charging port, fuel dispenser, or storage property). Businesses and organizations can be eligible for up to a 30% credit with the same $100,000 per-item limit if certain prevailing wage and apprenticeship requirements are met. For practice owners, one of the first steps should be to check your location which is done through the U.S. Department of Energy’s 30C Tax Credit Eligibility Locator.
Claiming the Credit and Careful Considerations:
- To claim the credit for personal or for business property, you will need to fill out and attach Form 8911 with your current year tax return.
- IRS imposed special rules and limitations that are attached to this credit. Meeting with your CPA to ensure you are in compliance with the IRS and ensure you qualify for the Alternative Fuel Vehicle Refueling Property Credit should be considered.
Final thoughts
Depending on the route that you choose to take, discussing this credit with your CPA during tax planning meetings throughout the year can help avoid simple pitfalls when tax season come around. With the credit set to sunset in June 30, 2026, the opportunity to modernize your practice’s transportation — while saving thousands — is shrinking.
The bottom line: don’t wait until it’s too late to claim this credit. If you are still unsure, schedule a free consultation to discuss if this is the right decision for you or for your dental practice.
