Electrify Your Fleet Faster With Incentives and Rebates

May 17

Not long ago, the idea that major corporations around the world would make the bold move of switching to all-electric vehicle fleets would have seemed far-fetched, if not inconceivable. Nowadays, it’s a different story. Just last year, major corporations including Amazon, AT&T, IKEA North America, Siemens and more banded together in the Corporate Electric Vehicle Alliance. The initiative, led by Ceres, aims to push more corporations toward fleet electrification and help expand the demand for electric vehicles.

The reasons for this seismic shift are many, and certainly include a general growing consciousness for sustainability in the corporate world. The plummeting costs of technology haven’t hurt either — Ceres reported that electric vehicle battery costs, alone, dropped by 80% from 2012 to 2020.

One other significant reason is the push for electrification at all levels of government — from federal to local. Policies all across America are making it easier for companies big and small to make the leap to an electric fleet. Here are just a few incentives you can seek out to lower the cost of your transition and offset the costs of installing the necessary charging infrastructure.

Federal Incentives for Electric Fleets

There are a variety of federal tax credits and incentives for purchasing electric vehicles, as well as for expanding America’s charging network and EV infrastructure. Two, in particular, are significant.

Qualified Plug-In Electric Vehicle Tax Credit

One of the best-known incentives is the Qualified Plug-In Electric Vehicle Tax Credit which provides between $2,500 and $7,500 in credit for each vehicle purchased. The total amount depends on battery capacity, along with how many electric cars the particular EV manufacturer has sold. After a company sells 200,000 qualified PEVs, the credit begins to phase out for all of its electric models. So far, only General Motors and Tesla have passed this threshold. Current models, credit amounts and manufacturer phase-out info are available through the Internal Revenue Service.

Alternative Fuel Infrastructure Tax Credit

The other major tax incentive applies to companies that install alternative fuel sources including electric vehicle charging stations. This credit covers 30% of the cost of the station up to $30,000. One company that installs multiple EV charging stations can use this credit repeatedly — once for each station. Although this credit is currently set to expire at the end of 2021, there is hope that the Biden administration will extend it.

These credits are nonrefundable — meaning they run out once your tax bill hits zero, but they can lower your federal taxes significantly. Between these two credits, a company looking to install and provide charging for an electric fleet can save substantially on the upfront costs.

State Incentives for EV Fleets

The credits don’t stop there. Most states have at least some level of tax credits or other rebates available, and they continue to add more. Currently, all but six states offer something.

Exactly what you can get for your electric fleet will depend on where your company operates. In Missouri, for instance, Ameren Missouri offers incentives to nonresidential customers that install Level 2 or DC fast charging stations. Companies with electric fleets in the state would also avoid the cost of annual or biannual emissions inspections since Missouri exempts electric vehicles from this requirement.

California is far on the progressive end of the spectrum, offering a myriad of tax credit incentives that businesses can take advantage of for transitioning to electric fleets. There are tax credits for electric bus and truck fleets, charging rate reductions and a variety of programs from utility companies designed to assist with the costs of installing EV charging infrastructure.

You can find a full list of state incentives at the National Conference of State Legislatures’ website which has an interactive map that’s updated regularly. EV Connect can also help you navigate this complex web of incentive options.

Local Incentives

Local credits vary by region but as more counties and municipalities enact plans and mandates to make government vehicles fully electric, more incentive programs are likely to follow. The Chicago Department of Transportation already offers its Drive Clean Chicago program which offers grants and vouchers to assist with purchasing electric fleets and installing charging infrastructure. Funding for the program is currently on hold, but it is expected to resume.

More modest programs include Houston’s 24-hour expedited permitting process for electric vehicles. Programs like this are designed to make it easier to push a new fleet through inspections and permitting and get it on the road. Before you begin building the infrastructure needed to support your fleet, check with your local city and county governments and utility providers to see what EV infrastructure incentives are available. Once again, EV Connect is here to help.

The Rewards of Electrifying Your Fleet

Going electric — even on a massive scale — is easier than ever. With more public policies pushing toward aggressive moves away from carbon emissions and fossil fuel dependency, the incentives and rewards are only likely to continue. Don’t wait until every other company has an electric fleet. Make the transition today. Your employees and customers will notice.

Luke Daugherty is a freelance writer, editor and former operations manager based in St. Louis. His work covers operations, marketing, sustainable business and personal finance, as well as many of his personal passions including coffee, music and social issues.