EV Charging Funding Outlook: What’s Next for the Industry in 2025? 

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The policy landscape for electric vehicles (EVs) in 2025 is at a pivotal juncture. With a new administration in place, the future of clean energy initiatives faces renewed scrutiny, raising concerns about policy continuity and long-term investment stability. While policy direction may shift, the increasing number of EV drivers and the expanding charging infrastructure underscore electrification as both a practical and strategic business decision. Incentives at various levels continue to support this growth, reinforcing EV adoption as a long-term, viable investment. 

As recent federal developments have sparked discussions about policy stability, it is important to recognize that many EV projects do not rely on federal incentives. Instead, utility programs, state-level policies and private sector funding remain instrumental in supporting infrastructure expansion and ensuring project continuity. 

Utilities and Non-Federal Funding 

Many EV charging infrastructure projects are backed by utilities and state-level programs rather than federal funding. Utilities have committed significant resources to expanding the charging network, helping to offset costs for site hosts and ensuring long-term project viability. Key factors driving continued EV growth include: 

• Utility-Led Investments: Utilities play a pivotal role in funding and deploying charging infrastructure, providing rebates, incentives, and direct investments. 

• State-Level Regulations: Programs such as California’s Advanced Clean Cars II and similar initiatives in 17 other states continue to shape the EV market independently of federal policies. 

• Private Sector Funding: Venture capital, corporate investment, and institutional funding are fueling the expansion of EV infrastructure, supporting innovation and accelerating deployment. 

• Private Sector Commitments: Automakers and charging providers have invested heavily in electrification, ensuring continued market momentum. 

Clean Vehicle Regulations 

Beyond federal incentives, state-level regulations continue to shape the EV market.  California’s Clean Air Act waiver allows the state to implement stricter emissions standards than federal guidelines, serving as a blueprint for other states. More than a dozen states, including New York, Massachusetts, and Washington, have adopted California’s standards, influencing emissions policies nationwide. 

Notable regulations include: 

• Advanced Clean Cars II: Mandates 100 percent zero-emission vehicle (ZEV) sales for new passenger vehicles by 2035. 

• Advanced Clean Trucks: Requires a phased increase in ZEV truck sales from 2024 to 2035. 

• State Adoption: Seventeen states have adopted similar regulations, reinforcing market momentum toward ZEVs. 

• Legal Considerations: Attempts to revoke California’s Clean Air Act waiver have failed in the past, establishing a strong legal precedent for continued enforcement. Legal challenges to the waiver are not new. In December, the U.S. Supreme Court declined to review the D.C. Circuit Court’s decision that upheld the EPA’s approval of California’s waiver. While executive orders may lead to further lawsuits, the waiver itself cannot be unilaterally reversed without Congressional action, reinforcing the legal stability of California’s emission standards. 

Federal Policy Developments: Understanding the Impact 

While federal policies influence the EV landscape, they are just one piece of the puzzle. Most projects will continue moving forward, as they are not solely dependent on federal incentives. Instead, these policies help shape long-term market conditions and support broader industry growth, providing additional opportunities rather than determining the viability of charging infrastructure expansion. 

Inflation Reduction Act (IRA) Impact 

The IRA has played a transformative role in accelerating EV adoption by providing financial incentives for consumers and businesses alike. Key provisions include: 

• Consumer Tax Credits: Up to $7,500 for new EVs and up to $4,000 (or 30 percent of the sale price) for used EVs, helping to lower the upfront cost of ownership. 

• Commercial Clean Vehicle Tax Credit: Up to $40,000 for qualifying commercial EVs, making fleet electrification more viable. 

• Point-of-Sale Benefits: As of January 1, 2024, tax credits can be applied directly at the time of purchase, enhancing affordability and accessibility. 

• Leasing Advantages: Due to the commercial clean vehicle tax credit, leasing options may become more attractive, particularly for consumers who don’t qualify for direct purchase incentives. 

An Executive Order signed on January 20 requires federal agencies to immediately pause the disbursement of funds appropriated through the IRA and BIL. Agencies must submit a report within 90 days identifying how these policies align with the administration’s goal of eliminating the purported EV mandate. However, the IRA’s tax credits for clean energy investments—including EVs—are established by statute, meaning they require congressional action to be repealed. 

The rules outlining tax credits for new and used EVs were finalized last year, while those governing commercial EVs and EV charging remain in the rulemaking process, meaning taxpayers can currently rely on proposed rules, but they have not yet been finalized. Under the Impoundment Control Act of 1974, if Congress does not pass a law rescinding these appropriations within 45 days, the federal government must release the funds. 

Meanwhile, Congressional Republicans are exploring legislative efforts that could impact federal EV tax credits. The 2017 Tax Cuts and Jobs Act, which expires this year, will require new legislation to extend certain provisions. To offset costs, EV tax credits have been identified as a potential target for repeal. 

Bipartisan Infrastructure Law (BIL) Implications 

The BIL has been instrumental in building out the necessary infrastructure to support nationwide EV adoption. Major funding programs include: 

• National Electric Vehicle Infrastructure (NEVI) Formula Program: $5 billion allocated to states for deploying EV charging corridors along major highways. Of this, approximately $4 billion has already been committed and is likely legally protected from being rescinded. The program operates on a reimbursement basis, meaning states must first invest in charging infrastructure before receiving federal funds. Under federal law, the government is required to reimburse states for these expenditures, making it difficult for any administration to claw back committed funds. 

• Charging and Fueling Infrastructure (CFI) Discretionary Grant Program: Another key component of the Bipartisan Infrastructure Law (BIL) is the competitive issuance of CFI grants, aimed at supporting the buildout of community-based charging infrastructure. With a total appropriation of $2.5 billion, approximately $1.8 billion of these funds have already been committed to various projects. Any efforts to retract or attack these committed funds, without an act of Congress, are likely to face significant legal challenges. 

• Fund Distribution: The majority of allocated funds have already been disbursed to states and municipalities, making it legally complex to redirect or rescind them. 

Executive Order Effects 

While a new administration could influence policy direction, executive powers have limitations when it comes to altering existing legislation: 

• 90-Day Review Period: A potential temporary halt on fund disbursements for IRA and BIL programs. 

• Legal Constraints: Executive actions cannot override laws passed by Congress. 

• Congressional Hurdles: Any significant policy rollback would require bipartisan legislative support. 

Key Takeaways for Consumers and Industry 

Despite uncertainties, core elements of the EV transition remain stable: 

• Tax Credits Persist: Consumer and commercial incentives are expected to remain available through 2025. 

• Infrastructure Expansion Continues: Federally backed charging network deployments are progressing nationwide. 

• Automaker Commitments Hold Strong: Leading manufacturers have already invested heavily in EV technology and production lines, reinforcing the long-term shift toward electrification. 

• Policy Uncertainty Exists: While changes are possible, major reversals face significant legal and political obstacles. 

Conclusion 

The road ahead for EV policy is not without challenges, but the overarching trajectory remains clear. Global market demand, automaker investments, and existing federal and state commitments suggest that EV adoption will continue to accelerate. For consumers and industry stakeholders alike, staying informed about policy shifts and available incentives is key to navigating this evolving landscape.  

The EV sector has proven its resilience before, and it will undoubtedly adapt to whatever challenges 2025 may bring. 

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