Clean Fuel News

Refueling Infrastructure Tax Credit

The Inflation Reduction Act of 2022 (IRA) extended and amended the 30C Alternative Fuel Vehicle Refueling Property Credit (30C credit), which provides an income tax credit for qualified alternative fuel vehicle refueling property, including certain property for the recharging of an electric vehicle, placed in service in eligible census tracts, which are low-income community census tracts or non-urban census tracts as defined in IRS Notice 2024-20 (discussed further below). Individuals, businesses, and certain state, local, and other tax-exempt entities are eligible to claim the 30C credit.  The information this mapping tool provides is intended to reflect currently available data for the two types of eligible census tracts relevant to the 30C credit. The 30C credit provides:

• Consumers who purchase and install qualified alternative fuel vehicle refueling property for their principal residence, including electric vehicle charging equipment, between December 31, 2022, and January 1, 2033, may receive a tax credit for each item of property that is generally the lesser of 30% of the property’s cost or $1,000. 

• For businesses as well as applicable entities, including state, local, tribal and other qualifying tax-exempt organizations, the credit for each item of property is generally the lesser of 6% (or 30% if certain prevailing wage and apprenticeship requirements are met) of the property’s cost or $100,000. The credit is available for property placed in service between December 31, 2022, and January 1, 2033.

The IRA also expanded the definition of ​“qualified alternative fuel vehicle refueling property” to include charging stations for 2- and 3-wheeled vehicles (for use on public roads) and clarified that bidirectional charging equipment qualifies.

Eligible Census Tracts

Eligible census tracts fall into two categories and eligible property can be in either type of tract (or both, if the tract falls under both categories) to qualify:

1. Low-income community census tracts: Population census tracts as described in Internal Revenue Code section 45D(e), i.e., the ​“low-income community” definition of the New Markets Tax Credit (NMTC).
2. Non-urban census tracts: Population census tracts defined as ​“not an urban area” (or ​“non-urban area”) according to Treasury/IRS guidance.

These categories of population census tracts are defined IRS Notice 2024-20. The mapping tool on this page reflects currently available data on the two types of eligible census tracts.

This mapping tool is intended to reflect all eligible locations for the 30C credit but is not formal IRSguidance. Thus, this mapping tool may not be relied upon by taxpayers to substantiate a tax return position and will not be used by the IRS for examination purposes. The mapping tool does not reflect the application of the law to a specific taxpayer’s situation, and the applicable Internal Revenue Code provisions ultimately control.

30C Tax Credit Eligibility Locator Mapping Tool

Access the Tool

FAQ: https://www.anl.gov/esia/refueling-infrastructure-tax-credit-faq

30C Location Eligibility Decision Tree For Properties Placed in Service Between December 31, 2022, and January 1, 2030, Using Currently Available Data

* This flow chart was developed to assist users in understanding which map layers correspond to the year of installation when operating the mapping tool. The mapping tool is not formal IRS guidance. Thus, this flow chart may not be relied upon by taxpayers to substantiate a tax return position and will not be used by the IRS for examination purposes. The flow chart does not reflect the application of the law to a specific taxpayer’s situation, and the applicable Internal Revenue Code provisions ultimately control. Additionally, individuals or entities looking to claim the credit may wish to consult with a tax professional, accountant, or attorney on questions regarding eligibility. This decision tree only shows options for properties placed in service between Dec. 31, 2022, and Jan. 1, 2030, using currently available data. This decision tree and the map will be updated upon release of new data and Treasury/IRS guidance.

Source: https://www.anl.gov/esia/refueling-infrastructure-tax-credit