How the new Wisconsin electric vehicle charging tax impacts you

With the surge in electric vehicle (EV) usage, staying updated on new tax laws is essential. The 2023 Wisconsin Act 121 introduces an EV charging excise tax and requires registration for specific parties. Here’s what you need to know:

What is the EV charging excise tax?

Starting January 1, 2025, an excise tax of 3 cents per kilowatt-hour will be imposed on the electricity delivered or placed into the battery or other energy storage device of an electric vehicle by:

• Level 3 chargers at electric vehicle charging stations.
• Level 1 or Level 2 chargers installed on or after March 22, 2024, at electric vehicle charging stations.

The excise tax applies to the total kilowatt-hours of electricity delivered or placed by an electric vehicle charging station, regardless of whether the electricity is charged for or if the charging station is publicly accessible.

What doesn’t the tax apply to?

• This excise tax does not apply to electricity delivered or placed by chargers located at residential properties.
• The sale of electricity through Level 3 chargers and Level 1 or 2 chargers installed on or after March 22, 2024, is not subject to sales tax beginning January 1, 2025.

Electric vehicle charging station registration

Owners, operators, managers and lessees must register with the Wisconsin Department of Revenue before delivering or placing, or offering to deliver or place, electricity from an electric vehicle charging station. Registration details must include the operating name of the applicant and the location of all the applicant’s electric vehicle charging stations.

Registration for the electric vehicle charging tax can be completed through the department’s online business tax registration portal.

How Wipfli can help

Wipfli’s experienced state and local tax team can assist you with the registration process and the subsequent filing of these excise tax returns. Contact us to learn more.