Policies Driving Infrastructure Investments: A Look at 30C

As EVgo continues to expand our network to serve the growing number of electric vehicles (EVs) on the road, governments at the federal, state and local level are key partners. Government policy can help accelerate domestic investments, and the historic Inflation Reduction Act (IRA) is doing just that.

Electrified transportation is one of many sectors that is poised to accelerate in the U.S. thanks to the IRA. Notably, for the EV sector, the IRA incorporates a number of complementary policies that support the entire EV value chain, including battery manufacturing and recycling, consumer incentives, and tax provisions to spur the installation of public charging infrastructure, especially in rural and lower-income communities. Working together, these critical tax provisions are catalyzing investments in the U.S. 

This week, the Internal Revenue Service issued additional guidance for the 30C Alternative Fuel Refueling Infrastructure (30C) tax credit. This proposal provides much-needed certainty to the market and promises to propel further investments from the private sector. 30C is technology neutral and applies to many alternative fuels such as ethanol, biodiesel, hydrogen, electricity, and natural gas. Passed by Congress and signed into law in 2022, 30C represents one of the most effective policy tools for driving investments in public charging infrastructure across the United States.  

What is the 30C tax credit and why is the guidance significant? 

The IRA extended and expanded the 30C tax credit and now provides up to $100,000 for up to 30% of certain eligible costs involved in installing each item of charging infrastructure. In the electrified transportation sector, the credit is especially beneficial for alternative fuels providers like EVgo that are installing high-power public charging infrastructure at large sites. Locations with multiple fast charging stalls require major up-front investments, and while those investments are recouped over time, incentives like 30C help lower that initial cost to build at scale. This makes 30C a very effective tool to fast-track infrastructure deployment in the U.S.  

The release of additional proposed guidance gives companies like EVgo more information on the rules of the road to utilize 30C as intended by the IRA. The recent announcement builds on guidance released in January 2024 which outlined eligible communities for 30C as low-income or rural communities to ensure alternative fueling options like public charging are deployed nationwide.  

What's next? 

Innovative policy tools like 30C, made possible by the IRA, are critical to unlocking further investment opportunities in communities across the nation, with a focus on rural and lower income communities. EVgo intends to leverage 30C to further expand our network footprint for years to come. For drivers, this means more options will be available to charge on the go at convenient locations like grocery stores, shopping centers, retail centers and other businesses across the U.S.