Demand for electric vehicle registrations is growing steadily, albeit slowly, but it is necessary to expand and expand the charging network, including at home, in an effort, if nothing else, to overcome ongoing concerns about the presumed long-term range of these vehicles. Today, thanks to tax incentives, installing an electric charging station at home can become easier and more affordable.
Interventions to promote the installation of charging stations fall within the category of eligible technologies defined by Legislative Decree 257/2016, which defines “the minimum requirements for the construction of infrastructure for alternative fuels, including electric vehicle charging points.”
What are the tax incentives for installing an electric charging station?
Currently, there are two main tax incentives available:
50% Tax Incentive
110% Tax Incentive
How to Get the 50% Tax Deduction for an Electric Vehicle Charging Station
The 2019 Budget Law introduced a 50% tax deduction for the purchase and installation of electric vehicle charging infrastructure, to be used between March 1, 2019, and December 31, 2021. This incentive also includes the initial costs for requesting an upgrade to the electricity grid up to a maximum of 7 kW. The maximum expenditure is €3,000, divided into 10 equal annual installments. Starting January 1, 2021, the spending limits have been revised, setting a limit of €2,000 for single-family homes and €1,500 for condominiums with up to eight charging stations.
How to obtain the 110% tax deduction for an electric charging station
Regarding the possibility of using the 110% Superbonus tax deduction, it is important to remember that it is only available if the project is carried out in conjunction with one of the key projects defined by the Relaunch Decree:
Thermal insulation of vertical, horizontal, and inclined opaque surfaces affecting the building envelope, with an impact greater than 25% of the building’s gross heat-dissipating surface area;
Replacement of existing winter air conditioning systems with centralized condensing systems for heating, cooling, or hot and domestic water supply in condominiums;
Replacement of existing winter air conditioning systems with heat pump systems for heating, cooling, or hot and domestic water supply in single-family buildings.
Electric vehicle charging stations: which expenses are eligible for tax relief?
Expenses incurred between March 1, 2019, and December 31, 2021, for the purchase and installation of an electric charging station are eligible, in addition to the option of increasing the power of the home meter up to a maximum of 7 kW, as mentioned above.
Who can benefit from the tax deduction?
Whether the tax deduction is 50% or 110%, six categories are eligible. These categories include individuals, condominiums, independent public housing institutions, jointly owned housing cooperatives, non-profit organizations, and amateur sports associations and clubs.
Companies, however, will only be eligible for the 50% bonus.
Electric charging station: invoice discount or credit transfer?
Individuals who meet all the requirements listed above can benefit from the tax deduction in the following forms:
As a contribution, i.e., a discount on the fee due, up to a maximum amount equal to the advance payment made by the supplier who performed the work;
By converting the deduction into a tax credit and subsequently transferring it to third parties.
In conclusion, it is useful to summarize the requirements to obtain the tax deduction:
The expenses must be incurred within the period beginning March 1, 2019, and ending December 31, 2021 (pending confirmation of the extension until the end of June 2022);
The installation must be performed in conjunction with one of the key works defined in Article 119 of the Relaunch Decree;
The works thus defined must result in an improvement of at least two energy classes of the building, which must be demonstrated through the Energy Performance Certificate (EPC) before and after the work;
The interventions must be carried out by condominium owners, individuals, independent public housing institutions, and housing cooperatives with undivided ownership.