Trump Admin Creates EV Charger Roadblocks
The EV charging installation market is facing new headwinds as the Trump administration is reportedly throwing up new roadblocks, potentially slowing federal support. Stricter rules for tax credits, including new battery mineral sourcing requirements and income caps for used EVs, are tightening eligibility, complicating the rebate landscape for contractors and homeowners.
The administration's tax and spending bill, signed into law last summer, eliminated the federal tax credits of up to $7,500 for new and used electric vehicle purchases. This move is part of a larger effort that includes revoking the target for half of all new vehicle sales to be electric by 2030. Transportation Secretary Sean Duffy has also announced that states receiving federal funds for EV chargers must use units made entirely with U.S. parts. This is a significant increase from the previous requirement of 55% American parts, a standard that some experts say is nearly impossible to meet with the current global supply chain. The new rules for the clean vehicle tax credit, which were in effect until their elimination, were tied to the sourcing of battery components and critical minerals. To receive the full $7,500 credit, a vehicle's battery had to meet separate requirements for both, each worth $3,750. For battery components, the value manufactured or assembled in North America had to be at least 60% for 2024 and 2025. For critical minerals, at least 50% of their value needed to be extracted or processed in the U.S. or a free-trade agreement partner, or recycled in North America, for 2024. These percentages were scheduled to increase annually, reaching 100% for battery components by 2029 and 80% for critical minerals after 2026. Vehicles with battery components from a "foreign entity of concern" were ineligible starting in 2024. Income limitations also applied to the now-defunct tax credits. For new vehicles, modified adjusted gross income caps were $300,000 for joint filers, $225,000 for heads of household, and $150,000 for single filers. For used EVs, the credit was 30% of the sale price, up to $4,000, on vehicles costing $25,000 or less. The income caps were lower for used vehicles: $150,000 for joint filers, $112,500 for heads of household, and $75,000 for individuals. The Alternative Fuel Vehicle Refueling Property Credit, which supports the installation of charging equipment, is also impacted. Originally extended to 2032 by the Inflation Reduction Act, it is now set to expire on June 30, 2026. This credit covers 30% of the cost, up to $1,000 for residential installations.
