Senator Wants IRS to Clarify Tax Treatment of Employer-Provided Charging of Electric Vehicles

Sen. Ron Wyden, D-Ore., the ranking Democrat on the Senate Finance Committee, has sent a letter to Internal Revenue Service commissioner John Koskinen asking the agency to issue guidance to make clear that electrical vehicle charging provided by employers is a de minimis fringe benefit.

Wyden argues that employer-provided electric vehicle charging should not be included as an employee’s income because it is so small as to make accounting for it unreasonable or administratively impractical.

“Promoting alternative vehicles and fuels is vital to our economy, our environment, and our national security,” Wyden said in a statement. “The IRS needs to end the uncertainty for businesses who are eager to help grow this important piece of American infrastructure.”

In partnership with the Department of Energy, Wyden’s office noted that businesses across the country have been working to install EV charging stations to help grow electric charging infrastructure. However, the lack of guidance from the IRS regarding the tax treatment of workplace EV charging has created uncertainty for participating businesses and could prevent others from installing these chargers due to the high cost of tracking charge usage.

In Oregon alone, the electric vehicle industry is valued at more than $250 million annually and supports more than 1,500 jobs. Wyden's office contends that the continued growth of the technology is being hampered by the lack of clarity in federal tax law.

For reprint and licensing requests for this article, click here.
Tax practice
MORE FROM ACCOUNTING TODAY