EVgo Inc. Income Taxes Disclosure

Note 16 — Income Taxes

Total loss before income taxes, which is primarily generated in the U.S., for the years ended December 31, 2025 and 2024 were $100.6 million and $129.0 million, respectively.

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The provision for income taxes consists primarily of income taxes related to U.S. federal and state jurisdictions where business is conducted related to the Company’s ownership in EVgo OpCo. All loss before income taxes is generated in the U.S. The Company’s provision for income taxes for the years ended December 31, 2025 and 2024 included $5.2 million and $2.3 million, respectively, of income tax benefit related to the net proceeds received from the transfer of EVgo OpCo’s 30C income tax credits.

The reconciliation of the U.S. corporate statutory income tax rate to our effective income tax after the adoption of ASU 2023-09 is as follows for the year ended December 31, 2025:

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The reconciliation of the U.S. corporate statutory income tax rate to our effective income tax before the adoption of ASU 2023-09 is as follows for the year ended December 31, 2024:

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Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as net operating loss and tax credit carryforwards. Types of events that would cause these temporary differences to become taxable include but are not limited to aging of the item(s) within the period allotted under regulations, disposition of business assets, and utilization of tax attributes. There were no deferred tax liabilities as of December 31, 2025 and 2024. The significant components of the Company’s deferred tax assets were as follows:

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In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Management considered all available material evidence, both positive and negative, in assessing the appropriateness of a valuation allowance for the Company’s deferred tax assets, including the generation of future taxable income, the scheduled reversal of deferred tax liabilities and other available material evidence. After consideration of all of the information available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance against its net deferred tax assets as of December 31, 2025 and 2024.

As of December 31, 2025 and 2024, EVgo had $213.2 million and $130.3 million, respectively, in federal net operating losses with an indefinite carryforward period, tax credits of $5.4 million and $6.7 million, respectively, with an indefinite carryforward period, and $176.3 million and $65.4 million, respectively, of state net operating losses, which will start expiring in 2027. In the event the Company generates positive taxable income, utilization of net operating loss carryforwards may be subject to limitations under Section 382 of the Code and other federal and state regulations.

The Company files income tax returns in the U.S. federal jurisdiction and in various state and local jurisdictions and is subject to examination by the various taxing authorities for all periods since its inception. As of December 31, 2025 and 2024, there were no unrecognized tax benefits for uncertain tax positions, nor any amounts accrued for interest and penalties.

For both of the years ending December 31, 2025 and 2024, the Company’s total state and local income taxes paid was $0.1 million. Due to the tax loss carryforwards, the Company had no federal income taxes paid for both of the years ending December 31, 2025 and 2024.

On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was signed into law and offered tax incentives targeting energy transition and renewables. The alternative fuel refueling property credit under Section 30C of the Internal Revenue Code (“30C”), which includes EV charging stations, was reinstated in 2022 and extended to apply to any property placed in service beginning January 1, 2023 and before January 1, 2033. The credit amount is calculated as 6% of the eligible costs of the alternative fuel refueling property with a potential higher tax credit rate of 30% of the eligible costs of the alternative fuel refueling property if specified prevailing wage and registered apprenticeship requirements are met during construction of the property, with a maximum credit amount of $100,000 per item of property. Under the IRA, 30C income tax credits may be transferred for cash consideration in the taxable year the credit is generated. The U.S. Department of the Treasury and the Internal Revenue Service have been granted broad authority to issue regulations or guidance that could clarify how these tax credits are calculated.

On July 4, 2025, H.B. 1, 119th Congress (2025), also referred to as the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. In particular, the OBBBA led to a sunset of federal incentives for EV purchases after September 30, 2025, and the federal tax credits for alternative fuels such as EV charging would terminate for any locations placed in service after June 30, 2026. EVgo does not expect the OBBBA to have a material impact on its consolidated financial statements due to the full valuation allowance currently being maintained.

During the year ended December 31, 2025, the Company transferred EVgo OpCo’s 2024 30C income tax credits to a third party for proceeds, net of transaction costs, of $14.8 million, of which $9.6 million represents the net proceeds attributable to the noncontrolling interest and contributed to EVgo OpCo. During the year ended December 31, 2024, the Company transferred EVgo OpCo’s 2023 30C income tax credits for proceeds, net of transaction costs, of $9.0 million, of which $6.6 million represents the net proceeds attributable to the non-controlling interest and contributed to EVgo OpCo.