Businesses Can Receive Tax Credits for Purchasing Electric Vehicles, Installing Charging Stations

LOCC featured event template copy

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?

  1. 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.
  2. 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
    . See the comparison below.
  3. 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.
  4. Switching to an EV enhances your business reputation and
    sustainability credentials. Customers and clients will notice.
  5. 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.
  6. You care about the environment. And #1-#5 make it easy to care.
  7. 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
    $25,000 rebate
RequirementConsumer NewPreviously OwnedCommercial 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
14,000 pounds)
Vehicle must be made by Qualified ManufacturerYesYesYes
Cannot be acquired for resaleYesYesYes
Must be manufactured primarily for use on public
streets, roads, and highways and have at least four wheels
YesYesYes if <14,000 pounds
No if >14,000 pounds
<14,000 GVWRYesYes
Must undergo Final Assembly in North AmericaYes
Vehicle MSRP limits applyYesYes
Taxpayer must include vehicle VIN on tax returnYesYesYes
Income limits for purchaser/taxpayerYesYes
Must be purchased from dealerYes
Model year must be at least 2 years earlier than
year acquired
Dealers must provide reports to taxpayer and IRSYesYes
Must be used for businessYes
Subject to battery sourcing requirements upon
release of proposed guidance
Source: Lake Oswego Sustainability Network