Electric vehicle and charging station credits

[HelenC12]

If you're asking what the requirements are to get the electric vehicle credit, see What is the electric car tax credit?

• To quickly get to that section of TurboTax, type electric vehicle credit in the search bar and click on the Jump to link.

If you're asking what the requirements are to get the charging station credits:

You may be eligible for the credit for charging or refueling stations for energy-efficient vehicles if you install an alternative fuel vehicle station at your home or business.

Note: For more information, visit the IRS Web site at www.irs.gov and search for the instructions for Form 8911, Alternative Fuel Vehicle Refueling Property Credit.

Eligibility requirements
The following conditions must be met to qualify for this credit:
 - You started using the station in 2021.
 - You are the original owner of the station.
 - The station is used primarily in the United States.
 - The station is installed in your main home or business location.

Limitations of this credit - Personal Use

 - If your credit is bigger than what you owe in taxes, the taxes you owe are reduced to zero, and the rest of your credit is lost.

Example: If you owe $800 in taxes, and you receive a credit of $1,000, the tax you owe is reduced to zero, and the remaining $200 is lost. You won't receive a refund for the remaining $200.

 - If you pay alternative minimum tax (AMT) you will not be able to claim this credit. If you are close to paying AMT, this credit may be limited by your tentative minimum tax as calculated on Form 6251, Alternative Minimum Tax - Individuals, line 33.

Limitations of this credit - Business Use
 - The business portion of the credit is part of Form 3800, General Business Credit, so any unused amount of the credit is not lost, but is eligible for the carryback/carryforward provisions of the general business credit.

 - If you use this station for business and claim a depreciation deduction, you must subtract the credit amount when TurboTax asks you to enter the cost of the refueling station in the Business (Schedule C) or Farm section of the program.

Example: You paid $5,000 for your Nissan Leaf charging station, which you use for your own business. The charging station is eligible for a credit of $1,500. To claim the depreciation deduction, you must subtract this credit amount when entering the cost of the refueling station in the Business or Farm section of TurboTax.

Credit Recapture
You may have to recapture some or all of the credit if the station no longer qualifies for the credit.


TurboTip: For more information, visit the IRS Web site at www.irs.gov and search for the instructions for Form 8911, Alternative Fuel Vehicle Refueling Property Credit.

To enter:

1. In the federal section of TurboTax, select the Deductions & Credits tab at the top of the screen.
2. Scroll down to Cars and Other Things You Own.
3. Select Energy-Efficient Vehicle Charging Station, Start/Revisit. 
4. Continue with the onscreen interview until complete. 

[saurabhchug]

Hello Turbo Tax Team,

I installed a EV charging station for 2000 in 2021 and started using it. When I add this information in Turbo tax it shows me tax credit of 0. Can you tell me what is the reason for this?

[AnnetteB6]

There are a couple of things that can cause the Alternative Fuel Vehicle Refueling Property Credit to be reduced to zero.

First, the credit is non-refundable and you must have a tax liability in order to take advantage of the credit.  Also, the calculation of possible Alternative Minimum Tax (AMT) is involved in the calculation of the credit and may reduce it to zero.  

There is a tentative minimum tax for AMT that is calculated in the background as your return is completed.  Form 8911 compares that tentative minimum tax to the net regular tax after certain other credits have been taken into account.  If the tentative minimum tax is greater than the net regular tax, then the Form 8911 credit is disallowed.  

Take a look at your Form 8911, lines 16, 17, and 18.  If line 17 is greater than line 16, then your personal credit for Form 8911 will be disallowed.  

@saurabhchug

[saurabhchug]

Thank you @AnnetteB6 - You are absolutely right. AMT is the reason why all of my credits are not getting applied. 

Since I installed solar panels, battery and ev charging station, am I allowed to apply a portion of these credits next year because AMT is kicking in?

[JohnW152]

If there’s an amount left over for the credit for your solar panels on Form 5695, that can carry over to next year’s return.

However, there’s no carryover for the others.  

@saurabhchug