Historic investments in charging infrastructure for electric vehicles (EVs) are creating opportunities for forward-thinking businesses. The $1 trillion Bipartisan Infrastructure Law (BIL) continues national momentum toward sustainability measures. One of the BIL’s clear objectives? To build a convenient, reliable, and affordable EV charging network across the United States. Drivers would have access to an EV charging station every 50 miles along 75,000 miles of federal highways, all within a mile of an exit.
To access money and other EV charger grants and subsidies that the BIL provides, businesses face jurisdictions with varying, complex requirements.
Entities at the federal, state, and local levels are offering millions of dollars if you know how to navigate the process. Future Energy can show your business how to stack incentives to offset nearly 100% of the cost of your EV charger installation.
What Does the New Federal Law Mean for EV Charger Installation Cost?
Passed in November 2021, the BIL established and funded the National Electric Vehicle Infrastructure (NEVI) Formula Program. The NEVI Formula Program makes $5 billion available to states over five years. Each state had to submit its own State EV Infrastructure Deployment Plan, a description of how it would use its apportioned funds in accordance with program guidance.
NEVI Requirements for EV Chargers
NEVI funds prioritize EV chargers along designated alternative fuel corridors. The alternative fuel corridors are locations along designated federal highways that will comprise a national network of sustainable charging solutions.
The government mandates that NEVI funding applies to EV charging stations with at least four direct-current fast chargers (DCFCs). DCFCs, also known as level 3 chargers, can fully charge an EV in about a half hour. DCFCs are the quickest type of charger available and will eventually comprise the backbone of the alternative fuel corridors.
State Plans for Grants
By September 2022, the federal government approved EV Infrastructure Deployment Plans for all 50 States, the District of Columbia, and Puerto Rico. Each approved plan determines its own requirements for the distribution of funds. Each state also explains where it plans to locate EV chargers.
Application of State Grant Money
States have a wide range of options regarding the use of their NEVI funding. For example, states can provide funding for:
Upgrades to existing EV charging infrastructure
Construction of new EV charging infrastructure
Installation of electric vehicle supply equipment (EVSE)
Operation and maintenance costs of EVSE
Community and stakeholder engagement
Workforce development activities
EV charging station signage
Data-sharing activities
Related mapping analysis and activities
Other Federal Highway Administration Funds
Outside of NEVI, the BIL designates additional money for organizations that meet certain requirements.
The Secretary of Transportation will fill gaps in the national network using discretionary grants. This money comes from 10% of NEVI funds that are set aside for this purpose.
The BIL established the Charging and Fueling Infrastructure Discretionary Grant Program (CFI Program) to strategically deploy EV charging in urban and rural areas. The EVSE must go into publicly accessible locations, such as downtown areas and neighborhoods. The CFI Program emphasizes underserved and disadvantaged communities.
What Tax Credits and Other Incentives Are Available for EV Charger Installation?
NEVI funds mandate the installation of level 3 chargers, but your business may not require the installation of DCFCs at this time. Instead, level 2 chargers may be more appropriate for your business use case.
Level 2 EV chargers are the most common type of EV charger. They operate off 240-volt power and are appropriate for commercial or residential use. A level 2 charger can generally fully charge an EV in about six to eight hours.
There are hundreds of EV charger grants and subsidies available for businesses that are looking to install level 2 EV chargers.
Tax Credits
Businesses can qualify for a 30% federal tax credit of up to $100,000. The Internal Revenue Code §30C known as the Alternative Fuel Vehicle Refueling Property Credit, applies to “any qualified alternative fuel vehicle refueling property.”
In addition to funds available under NEVI, many states offer tax credits. For example, New York offers an “alternative fuels and electric vehicle recharging property credit” equal to the lesser of $5,000 or 50% of the EVSE cost. Georgia offers a 10% tax credit off the cost of an EV charging station up to $2,500. Many other states offer similar tax incentives.
Make-Ready Programs
Electric utilities throughout the US are offering what they call “make-ready” programs.
The Joint Utilities of New York, for example, offers funds through its EV Make-Ready Program. The money is available to businesses who wish to install level 2 or level 3 EV chargers. These companies can earn incentives to offset up to 100% of the infrastructure costs associated with preparing a site for EV charger installation.
However, it can be a tedious process to identify which aspects of the EV charging infrastructure your state’s make-ready program covers.
Other State Grants
Many states offer EV charger grants that are funded through the Volkswagen Environmental Mitigation Trust. As part of a 2016 settlement with the Environmental Protection Agency, Volkswagen committed $2 billion toward EV charging infrastructure.
The states distribute this money in various ways. In Massachusetts, the Public Access Charging Program provides grants for 80% of the cost of level 2 EV charging stations and installations. The state provides additional money for installation of EV chargers at multi-unit dwellings and educational campuses.
How Does My Company Start the Process of Obtaining EV Charging Funds?
There are hundreds of available incentives that offset the cost of installing EVSE and EV infrastructure. The identification, qualification, and application processes can be confusing, complex, and tedious.
Together, we work to identify your use cases all the way through to obtaining and applying funds.
Identifying EV Charger Grants and Subsidies
Future Energy’s Financial Incentive National Database (FIND) tool identifies 99% of all available money to help our clients offset the cost of EV charger installation. We show you how to stack these incentives, which in many cases will cover up to 100% of your installation costs.
Applying for EV Charger Funds
Each application for an EV charging grant or subsidy requires different processes and paperwork. Future Energy handles every step of the process, including:
Determining grants applicable to your business
Gathering business information, including EV charging projections
Locating and filling out applications
Submitting necessary electrical diagrams
Monitoring deadlines
Following through on the process as you await a decision
Meeting Requirements to Obtain EV Charger Funding
The Future Energy staff specializes in understanding the details of the incentive programs, including qualification requirements, the application process, and the design of construction specifications. Once the FIND tool identifies available programs for your business, Future Energy helps to guide you through the process of accessing funds.
Where Can My Company Get Help in Obtaining EV Charging Funds?
The incentive landscape is becoming increasingly complex. Contact Future Energy today for guidance throughout the entire process. We help uncover all available money, determine your qualifications, and guide you through the application process.
Posted By Sam DiNello
Sam DiNello is Chief Executive Officer at Future Energy. He is an expert in the EV infrastructure space and passionate about innovative data-driven solutions that help companies access real-time intelligence for real-time action.
