EVSE Incentives: Complete Guide For 2023

DETROIT, MI - February 10th, 2023 | The immense benefits of electric vehicles are now common knowledge. Not only do they reduce our impact on the environment, but they offer significant cost savings in terms of fuel and maintenance costs. 

However, one of the essential elements for any successful electric vehicle program is the availability of electric charging infrastructure. This is where EVSE incentives can play a significant role in encouraging the widespread adoption of EVs.

EVSE stands for Electric Vehicle Supply Equipment, which refers to the hardware that allows you to charge your electric vehicle at home or on the go. Governments offer incentives across the United States to help offset some or all of the cost associated with installing an EVSE in homes and businesses, making it more affordable to switch to electric. 

Let's examine the incentives most relevant to commercial and residential EVSE installations in 2023.


Commercial EV Charging


Commercial Incentives

For businesses considering installing EVSEs, several incentives are available in 2023. We'll be covering the incentives applied across all states – however, your state may have additional incentives and programs that you can research if interested. 


Congestion Mitigation and Air Quality (CMAQ) Improvement Program

Transport departments need to reduce mobile source emissions and regional congestion to abide by the Clean Air Act. The CMAQ Program incentivizes this by partially funding projects that help alleviate congestion, like:

  • - Travel demand management strategies
  • - Diesel retrofit projects
  • - Transit improvements
  • - EV charging equipment installation

If a transportation project is demonstrated to reduce emissions OR positively impact a maintenance area, it may be approved for funding. 

More information: Department of Energy


Clean School Bus Program

The EPA runs a Clean School Bus Program to help replace high-emissions school buses with lower or no-emission models. Between 2022 and 2026, $5 billion will be split between applicants with maximum grants of up to $375,000. 

More information: Environmental Protection Agency


Airport Zero Emission Vehicle (ZEV) and Infrastructure Incentives

There are plenty of opportunities for airports to cut down on emissions, and this incentive aims to do just that. Public use airports can apply to be funded for up to 50% of ZEV (zero-emissions vehicle) expenditure – so any no-emissions vehicles and their supporting infrastructure can be rebated. 

More information: Department of Energy


Public Transportation Research, Demonstration, and Deployment Funding

To boost innovation and research, any organization or entity conducting research-based projects on ZEV in the public transportation sector can apply to be funded for a portion of their project costs. 

More information: Department of Energy


Electric Vehicle (EV) Charging and Clean Transportation Grants

Research projects that support the shift toward widespread decarbonization can apply for Department of Energy (DOE) grants. Specific projects will be prioritized over others, like:

  • - Improving mobility in underserved areas
  • - Making EV charging more affordable for individuals and entities
  • - Alternative fuels research
  • - Improving the efficiency of EV batteries

Applicants who can prove the project’s viability will be considered for a grant. 

More information: Department of Energy


Commercial Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit

Businesses can now apply for a tax credit on electric vehicles as long as they meet the following standards:

  • - Vehicles under 14,000 pounds must have seven kilowatt-hours of battery capacity

  • - Vehicles above 14,000 pounds must have fifteen kilowatt-hours of battery capacity

 Hybrid cars are eligible for 15% credit, while EVs and FCEVs are eligible for 30%. 

More information: Department of Energy


Home EV Charging


Residential Incentives

Homeowners can also take advantage of specific incentives to make EVSE installation more attractive and feasible. 


Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit

The Department of Energy has set up a first-come, first-serve initiative in which EV and FCEV owners can be credited up to $3,000. Individuals may only credit one vehicle per person, while businesses can be credited for up to 10. The total purchase price of each vehicle can be at most $50,000. 

More information: Department of Energy


Pre-Owned Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit

Similar to the incentive above, purchases of pre-owned EVs or FCEVs can be credited up to $4,000 if the purchase price doesn't exceed $25,000. 

More information: Department of Energy


Alternative Fuel Infrastructure Tax Credit

Fueling station owners can also apply for tax credits. More specifically, "...fueling equipment for natural gas, propane, hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel" can be credited 30%, not exceeding $100,000. 

More information: Department of Energy


Natural Gas Vehicle (NGV) and Plug-In Electric Vehicle (PEV) Weight Exemption

Under this exemption, vehicles powered by natural gas, electricity, and propane can exceed the federal weight limit by 2,000 pounds or less. However, the total weight can be at most 82,000 pounds. 

More information: Department of Energy



Are You Eligible?

Suppose you or your business are making an effort to lower emissions by adopting electric vehicles. In that case, you’re likely eligible to apply for one or more of the abovementioned incentives. Follow the links to the relevant websites for further information to see if you're eligible – you could be in the running for thousands of dollars in credits and grants.


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