30C: Alternative Fuel Vehicle Refueling Property Credit

Federal Agency

Sub-Department

Internal Revenue Service (IRS)

Purpose

To provide a tax credit for installing qualified vehicle refueling and recharging property in your home or business.

Applicant and/or Project Eligibility Requirements

To qualify for the credit, refueling property must be used to store or dispense clean-burning fuel. Beginning January 1, 2023, the Inflation Reduction Act expands qualified property to include charging stations for 2- and 3-wheeled vehicles (for use on public roads) and bidirectional charging equipment (vehicle-to-grid or V2G)

Decarbonization Considerations

This tax credit can be utilized by non-profit entities like municipalities that are working on fleet electrification. Local governments and Tribal communities can also highlight this tax credit for local businesses, landlords, and residents to encourage the private sector deployment of refueling and recharging infrastructure.

Equity Considerations

Qualifying property for businessess are limited to property placed in service within low-income communities or non-urban census tracts.

Helpful Tips

Tax-exempt entities can leverage these credits through a new mechanism known as "elective" or "direct" pay. To learn more about how these tax credits work for entities with and without tax liability, check out our Funding Guidance here: https://cityrenewables.org/funding-guidance/understanding-available-incentives/tax-credits-for-renewable-energy/

Other Notes

See IRA guidance here: https://www.irs.gov/newsroom/treasury-irs-issue-guidance-on-the-qualified-alternative-fuel-vehicle-refueling-property-credit See guidance on satisfying the geographical requirements here: https://www.irs.gov/pub/irs-drop/n-24-20.pdf