Chamber partner and friend the Lake Oswego Sustainability Network recently posted updated information on how businesses who are interested in purchasing new fully electric or hybrid vehicles or installing charging infrastructure can qualify for significant tax credits. Progress is being made, or being planned, for charging infrastructure in Lake Oswego and throughout Oregon. If you’d like to consider adding such a facility to your business property, there are also tax credits available! Here are some details:
Why buy an electric vehicle (EV) for your business?
- You are eligible for a $7500 tax credit for a fully electric vehicle and an
estimated $7000 tax credit for a plug-in hybrid vehicle.
- You may have heard about the strict barriers to eligibility for consumer
tax credits based on household income, where the vehicles and their
batteries were made, and where the battery minerals were mined.
But these barriers don’t exist for purchases of EVs by
businesses. See the comparison below.
- You will save money. Operating and maintaining an EV are 70% less
than a fossil fuel car.
a. The costs of electricity for fuel are similar to paying $1-$2 per
gallon of gas.
b. The costs of maintaining an EV are much less than a fossil gas
fueled vehicle. Routine upkeep costs are minimal.
- Switching to an EV enhances your business reputation and
sustainability credentials. Customers and clients will notice.
- Having an EV will improve the morale, engagement and retention of
your employees. They will know that you care about climate change.
Your employees will be thrilled to drive an EV.
- You care about the environment. And #1-#5 make it easy to care.
- Why add EV charging to your business property? Also consider
adding EV charging to your business. Onsite charging encourages customers
to spend more time shopping as they wait for their car to recharge. PGE
offers rebates for installing charging at your business. You can receive up to
$6,000 for the installation costs associated with your Level 2 EV charger. If
you purchase a qualifying DC Fast EV charger you can receive up to a
|Requirement||Consumer New||Previously Owned||Commercial Clean Vehicle|
|Minimum Tax Credit Amount||$7,500||$4,000||$7,500/$40,000|
|Propelled to a significant extent by an electric motor with a minimum 7kWh capacity battery|
capable of charging from external source of
(min 15kWh for
|Vehicle must be made by Qualified Manufacturer||Yes||Yes||Yes|
|Cannot be acquired for resale||Yes||Yes||Yes|
|Must be manufactured primarily for use on public|
streets, roads, and highways and have at least four wheels
|Yes||Yes||Yes if <14,000 pounds |
No if >14,000 pounds
|Must undergo Final Assembly in North America||Yes|
|Vehicle MSRP limits apply||Yes||Yes|
|Taxpayer must include vehicle VIN on tax return||Yes||Yes||Yes|
|Income limits for purchaser/taxpayer||Yes||Yes|
|Must be purchased from dealer||Yes|
|Model year must be at least 2 years earlier than|
|Dealers must provide reports to taxpayer and IRS||Yes||Yes|
|Must be used for business||Yes|
|Subject to battery sourcing requirements upon|
release of proposed guidance