With the emergence of electric vehicles from most manufacturers, dealers are being required to purchase expensive equipment to service and maintain these vehicles. However, some of this equipment will be available for tax credits that are set to expire this year. The credit available is 30% up to $30,000 for the aggregated cost of new EV charging equipment that was purchased and placed in service in 2020. The credit is a dollar for dollar reduction in federal income tax. In addition to the credit, the charging equipment could also be eligible for accelerated depreciation.
Contact an HHM CPAs professional for more information on this tax credit and other tax planning strategies.