Policies Driving Investment in Public Charging: A Look at 30C

As EVgo continues to expand our network to serve the growing number of electric vehicles (EVs) on the road, governments at the federal, state and local level are key partners in the effort to electrify our transportation system. Government policy can help accelerate transportation electrification, and the Biden-Harris administration's historic Inflation Reduction Act (IRA) is doing just that. Beyond environmental benefits, electrifying our transportation also has a positive impact on public health, creates jobs, and grows the economy.

Electrified transportation is one of many sectors that is poised to accelerate in the U.S. thanks to the IRA. Notably, for the EV sector, the IRA incorporates a number of complementary policies that support the entire EV value chain, including battery manufacturing and recycling, consumer incentives to make vehicles more affordable, and tax provisions to spur the installation of public charging infrastructure, with a focus on equity and access by driving charging investments in rural and lower income communities. Working together, these critical tax provisions are catalyzing investment in the EV sector.

The Biden-Harris administration reached a key milestone this week when the Internal Revenue Service issued additional guidance for the 30C Alternative Fuel Refueling Infrastructure (30C) tax credit. This proposal provides much-needed certainty to the market and promises to propel further investments from the private sector. While 30C is technology neutral and applies to many alternative fuels - such as hydrogen and natural gas - EVgo is particularly excited about the benefits for electrified transportation. Passed by Congress and signed into law by President Biden in 2022, 30C represents one of the most effective policy tools for driving investments in public charging across the United States.

What is the 30C tax credit and why is the guidance significant?

Thanks to leadership from the Biden-Harris administration, the IRA extended and expanded the 30C tax credit, and now provides up to $100,000 of transferable tax credits for up to 30% of certain eligible costs involved in installing each item of charging infrastructure. In the electrified transportation sector, the credit is especially beneficial for alternative fuels providers like EVgo that are installing high-power charging infrastructure at large sites. Locations with multiple fast charging stalls require major up-front investments, and while those investments are recouped over time, incentives like 30C help lower that initial cost to build at scale. This makes 30C a very effective tool to fast-track progress towards President Biden's goal of installing 500,000 EV chargers.

The release of additional proposed guidance from the administration gives companies like EVgo more information on the rules of the road to utilize 30C as intended by the IRA. The recent announcement builds on guidance released in January 2024 which outlined eligible communities for 30C as low-income or rural communities to help ensure equitable access to alternative fueling options like public charging.

One of the most important updates in the IRA was amending 30C from being calculated by each charging location to each item of charging property. This may sound wonky, but what it means in practice for EV charging stations is that 30C now incentivizes installers to build bigger stations with even more chargers, which we know improves customer experience. The proposed guidance provided more detail on those key definitions, and we applaud the Treasury Department for proposing a technology-neutral definition that will enable continued innovation in charging hardware.

What does this mean for EVgo, EV drivers and the planet?

EVgo intends to leverage 30C to further expand our network footprint for years to come. For drivers, this means more options will be available to charge on the go at convenient locations like grocery stores, shopping centers and other retail areas. The credit's focus on low-income communities and rural areas will also result in investments in those underserved communities, in line with equity goals shared by EVgo and the Biden-Harris administration.

Transportation remains the largest source of carbon emissions in the United States and enabling EV adoption is necessary to meet emissions reduction targets. Innovative policy tools like 30C, made possible by the IRA, are critical to our transition to a lower carbon future and unlocking investment opportunities in communities across the nation. Thanks to the leadership of the Biden-Harris administration, we are well on our way to transforming our transportation system and realizing a future where EV adoption is possible for every American.

The proposed rule is open for public comments until November 18, 2024, after which the IRS is expected to publish a final rule.