Businesses have a unique opportunity to capitalize on the convergence of a growing trend and a money-saving tax credit.

BY NICK HAWKINS

Electric vehicles are growing in popularity across the U.S. but a lack of charging stations makes many would-be buyers think twice about the purchase. Small business retailers could step in to fill the gap, providing chargers in their parking lots, and turn a profit in the process.

A recent Consumer Reports study shows that retailers see an average increase of four percent in foot traffic and five percent in revenue as consumers shop and run errands while they charge their vehicles. It also states that 89 percent of EV drivers make a purchase while charging their vehicle.

That should help business owners cover the purchase and installation costs, typically between $4,400 to $10,600 per port for slower Level 2 chargers and between $112,200 and $285,300 per fast charger port, according to CR. If that's not enough, many retailers can claim tax credits to further offset the cost.

More financial incentives are available through the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, reports CR. The Infrastructure Investment and Jobs Act holds $7.5 billion to build a national EV charging network through grants to install EV chargers in local communities and along travel corridors. The Inflation Reduction Act provides tax credits of up to 30 percent of the cost of installing EV chargers, up to $100,000 per charger for qualifying retail store locations until 2032. This tax credit is limited to charger installations in specific areas identified as non-urban or low-income. Two-thirds of Americans live in covered locations.

The report suggests "right speeding," in other words, matching the types of chargers that you install to the amount of time your customers are already spending at your shop. For example, stores with shorter "dwell times" like fast-food businesses will want to focus on fast charging, while department stores may be better served by investing in slower charging stations.

You can also explore various pricing strategies. Some retailers offer EV charging as a free amenity. Others have used it to generate revenue by placing a charging station in a fee-based parking garage or other gated area or charging for the electricity delivered. Some retail locations use a combination, with free charging for an initial shorter period followed by an hourly charge, reports CR.