30C: Alternative Fuel Vehicle Refueling Property Credit

Federal Agency

Sub-Department

Internal Revenue Service (IRS)

Purpose

To invest in alternative fuel vehicle refueling and charging property in low-income and rural areas. Alternative fuels include electricity, ethanol, natural gas, hydrogen, biodiesel, and others.

Applicant and/or Project Eligibility Requirements

To qualify for the credit, refueling property must be used to store or dispense clean-burning fuel. Qualified property includes charging stations for 2- and 3-wheeled vehicles (for use on public roads) and bidirectional charging equipment (vehicle-to-grid or V2G). The qualified alternative fuel vehicle refueling property must be located in low-income or rural areas.

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

Helpful Tips

Direct Pay is eligible for this credit for tax-exempt entities. 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