The Biden administration has offered a broad interpretation for where electric vehicle (EV) charger projects can qualify for new tax credits — making those credits available in places where about two-thirds of Americans live.
Under the Democrats’ climate, tax and health care bill, tax credits for EV chargers are available to those who build chargers in low-income communities or in areas that are not considered urban.
In new guidance announced Friday, the Biden administration offered a wide interpretation of nonurban — saying that it applied to any census tract where at least 10 percent of blocks have not been designated as urban areas.
A White House fact sheet said this means the credit will be “available to approximately two-thirds of Americans.”
The move was cheered by environmental groups, which say making the credit widely available will result in a greater buildout of infrastructure for climate-friendly vehicles.
“This guidance will help accelerate progress towards the administration’s climate, air quality, and equity goals,” said Katherine García, the Sierra Club’s Clean Transportation for All deputy director, in a written statement.
This is not the first time the Biden administration has opted for latitude in its tax credit guidance for EVs. It has previously done so in credits for consumers who purchase the vehicles, choosing to allow crossovers to qualify for tax credits for electric SUVs.
More broadly, the administration has sought to bolster the adoption of EVs as part of its strategy to mitigate climate change.
Alongside the tax credit guidance, the White House also announced $325 million in new investments to repair broken chargers.
It said that the number of publicly available chargers has grown by more than 70 percent — to 170,000 — since President Biden took office three years ago.
It also said that EV prices are down more than 20 percent from last year.
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