Wisconsin Electric Vehicle Charging Tax

Wisconsin is seeing a 54% rise in EV registrations in 2022 compared to 2021, indicating the state’s expanding EV adoption. A sizable percentage of EVs are located in urban areas. Concerns about climate change, federal infrastructure spending, and improvements in EV technology are some of the causes driving this rise. To encourage adoption, state laws have been implemented. For example, Act 121 exempts EV charging stations from public utility regulation and imposes an excise charge on public charging to pay for road upkeep. In this article we are going to consider Wisconsin electric vehicle charging tax, how it works, who is affected etc.

What Is The Wisconsin Electric Vehicle Charging Tax?

On January 1, 2025, Wisconsin implemented a $0.03 per kWh electric vehicle (EV) charging fee. This excise tax is meant to pay for road maintenance and is applied to power that is delivered to an EV’s battery at public charging stations. To collect and return this fee, owners of public EV charging stations are required to register with the state Department of Revenue.

Why Was the EV Charging Tax Introduced?

As more drivers transition to electric vehicles, the Wisconsin EV charging tax was implemented to provide ongoing financing for road building and maintenance. Beginning in January 2025, the levy levies an excise tax of three cents per kilowatt-hour on electricity used to charge electric vehicles at public charging stations, which helps fund road upgrades.

• Lost Fuel Tax Revenue

As more individuals choose electric vehicles (EVs) over internal combustion engine (ICE) vehicles, the state’s revenue from traditional fuel taxes (diesel and gasoline) is declining. Road construction, maintenance, and other transportation infrastructure have traditionally been financed by fuel taxes. Fuel sales have decreased, so that source of income is decreasing.

• Maintain Roadway and Infrastructure Funding

The goal of the tax is to guarantee equitable contributions from all users of the route. EV drivers do not now pay gasoline taxes, but they nevertheless use the roads just like gas-powered vehicles. The new charge helps guarantee that there will be sufficient money to maintain roads, fix damage, and carry out regular infrastructure work even as EV use rises.

• Equity Among Road Users

Lawmakers are worried that drivers of ICE vehicles are shouldering a greater portion of the cost of road maintenance in the absence of such a levy. Regardless of how they fuel their cars, the EV charging tax is viewed as a step toward a more “equitable system” where road users pay for them proportionately.

• Legal and Policy Reforms to Expand EV Charging Infrastructure

The fee is a component of larger legislation (2023 Wisconsin Act 121) that modifies regulations regarding EV charging stations (e.g., permitting more firms to operate them, unlocking federal funds) in addition to establishing this excise tax. There needed to be a framework for how charging stations are controlled and contribute to state revenues in order to be eligible for federal funds and to install fast chargers along highways, etc.

• Projected Modest but Growing Revenue

Although initially anticipated revenue is very low in comparison to the revenue generated by gas taxes, predictions indicate that the new tax will generate some revenue (~$3.35 million in 2025, increasing to ~$3.85 million in 2026). As EV use increases, this additional cash can assist in defraying the increased expenses of road maintenance.

• Encouraging Efficient Charging Behaviors

Some of the policy motives, though less clearly defined, include potentially discouraging free or “super convenient” charging that circumvents pricing signals and promoting EV charging at specific times or types of chargers (e.g., home vs. public). The statute concentrates the fee on public or non-residential stations, or more recent installations, and exempts residential billing (except from hotels). This strikes a balance between promoting EV adoption and guaranteeing that non-residential charging adds to public expenses.

Read also: How Long Does It Take To Charge an Electric Car?

Who Will Be Affected By The Wisconsin EV Charging Tax?

Owners / Operators / Managers / Lessees of Charging Stations

1. Any entity that owns, operates, manages, or leases an electric vehicle (EV) charging station must register with the the Wisconsin Department of Revenue and collect or remit the excise tax.
2. The tax and registration obligation applies regardless of whether the charging station is open to the public or whether the operator charges consumers for electricity.
3. Even stations that haven’t historically charged for electricity may now incur this obligation if they deliver electricity to EVs.

Public Charging Stations / Commercial Chargers

1. Publicly accessible Level 3 chargers (i.e. fast chargers) are explicitly subject to the tax.
2. Level 1 / Level 2 chargers installed on or after March 22, 2024, at commercial or non-residential charging stations will also be taxed.
3. Even private businesses that provide chargers (e.g. workplaces, shopping centers) could be impacted if their station meets the criteria (ownership, installation timing, electricity delivery).

Hotels (for EV Charging Stations)

Except for residential charging stations at hotels, residential exemptions usually apply. Depending on the station and consumption, hotels that provide EV charging may need to register and pay the tax.

State & Local Government Entities

1. The law covers state agencies and local governments, though with certain restrictions and nuances under Act 121
2. For example, government-owned chargers that are made available to the public may be taxed, unless they satisfy particular conditions (free use, predecessor installations) under the statute.
3. Local governments’ ability to own or operate pay-for-use chargers is constrained by the legislation.

Electric Vehicle Owners / Users (Indirectly)

1. While Electric vehicle owners do not themselves pay the tax directly (unless they own a charging station), they may indirectly pay higher costs due to the excise tax being passed through in electricity prices at charging stations.
2. The impact is greater for those who rely heavily on public charging or have to charge while traveling (rather than at home).

Entities Exempted (i.e. Less Affected / Not Affected)

1. Residential EV charging stations (i.e. home chargers) are exempt—except when the charging station is located at a hotel.
2. Charging stations installed before March 22, 2024 (for Level 1 / Level 2) may not be subject to the excise tax under transitional or “grandfathering” rules.
3. Purely internal-use chargers (e.g. a business that charges only its own fleet and not “delivering electricity” to the general public) might be exempt or treated differently under the statute (depending on context). The statute draws lines around “delivery or placement of electricity from an EV charging station.

How Wisconsin EV Owners Can Adapt

• Prioritize Home Charging: Use your home’s standard or 220V outlet for charging overnight whenever possible, as this is the cheapest and most convenient alternative
• Use Public Charging Wisely: Avoid using a public fast charger to charge all the way to 100% because the final 20% takes a long time. Use your home charger after you’ve charged enough to get to your destination.
• Maintain Battery Health: Don’t let the battery run down to 20% or charge it to 100% too often. For most daily driving, it’s a good idea to keep the charge between 50% and 80%.
• Use Route – Planning Apps: For finding chargers, examining costs, availability, and user reviews, apps such as PlugShare are indispensable. These applications can assist you in locating chargers at establishments such as Walmart stores or recently constructed stations funded by the National Electric Vehicle Infrastructure Initiative.

FAQs On Wisconsin Electric Vehicle Charging Tax

Is there a new EV charging tax in Wisconsin?

Yes, Wisconsin enacted a new excise tax on power supplied to EV charging stations, which will go into effect on January 1, 2025. Electricity supplied to an EV’s battery at a charging station is subject to the tax, which is set at 0.03 per kWh.

How much is the Wisconsin EV charging tax per kWh?

Effective January 1, 2025, an excise tax at the rate of 3 cents per kilo-watt-hour is imposed on electricity delivered from an electric vehicle charging station into the battery or other energy storage device of an electric vehicle.

Does the tax apply to home EV chargers?

No, the majority of Wisconsin’s household EV chargers are exempt from the fee. With one significant exception, domestic charging stations are expressly exempt under the state’s regulations. Residential EV charging stations are exempt from the excise tax on electricity provided by EV charging stations under 2023 Wisconsin Act 121. There is one exception, though: hotel-based residential fees are not exempt. Stated differently, if a hotel provides EV charging to its visitors (despite the fact that it is somewhat “residential-style”), the charger might be liable to the tax.

When does the Wisconsin EV charging tax take effect?

In accordance with 2023 Wisconsin Act 121, the Wisconsin EV charging tax went into effect on January 1, 2025. Electricity transferred to an electric vehicle’s battery from a charging station is subject to a tax of 3 cents per kilowatt-hour kWh. Tax returns must be filed by registrants every two years.

How does Wisconsin’s EV tax compare to other states?

Due to a new 3 cents per kWh excise tax on charging and a combined yearly registration surcharge of $175, Wisconsin has a higher EV tax than most states. In contrast, many other states have lower or no EV taxes, and some are even providing incentives. Other states focus on providing tax incentives rather than imposing new taxes, or they have particular EV registration fees that range from $50 to $200 or more.

Conclusion

In an era of increasing EV adoption, the Wisconsin electric vehicle (EV) charging fee represents a significant change in the way the state finances road maintenance. Home EV chargers are still exempt, allowing private EV owners to charge at home at a reasonable cost, even though it mainly impacts public and commercial charging stations. This new strategy, which aims to replace the state’s diminishing fuel tax revenue, supports the growth of the state’s charging infrastructure while fostering equity for all users of the road. Knowing this tax helps EV owners and companies get ready for the future as Wisconsin continues to invest in renewable energy and sustainable mobility.