New Wisconsin tax on EV charging will start in 2025
December 19, 2024
By Scott Brawdy, CPA
Principal and SALT Practice Leader
A new excise tax on electric vehicle (EV) charging in Wisconsin will take effect next year.
The tax implemented by the State of Wisconsin will go into effect on January 1, 2025. It is part of Wisconsin Act 121 and aims to generate revenue for maintaining the state's roadways and infrastructure.
Key Elements of the New Tax
- The excise tax will be 3 cents per kilowatt-hour (kWh) of electricity delivered from an EV charging station into the battery or other energy storage device of an EV.
- Residential EV charging stations are exempt, except for those at hotels.
- The tax will be charged on electricity delivered by all Level 3 chargers. It also applies to Level 1 and Level 2 chargers that were installed on or after March 22, 2024.
- The registration and excise tax apply regardless of whether the charging station is available for public use and whether there is a charge to the consumer for the electricity from the EV charging station.
Possible Action Required
Registration: The owners, operators, managers or lessees of EV charging stations must register with the Wisconsin Department of Revenue before delivering electricity subject to the new excise tax. They can register using the Online Business Tax Registration system before January 1, 2025.
Compliance: Ensure that your charging stations are compliant with the new tax regulations and that the appropriate tax is collected and remitted.