If you install qualified vehicle refueling or electric vehicle recharging property in your home or business, you may be eligible for the Alternative Fuel Vehicle Refueling Property Tax Credit. The credit was extended and modified by the Inflation Reduction Act (IRA). The property must be installed in a qualifying location and the credit allowed is based on the placed-in-service date for the qualifying property. On this page Who qualifies Qualified refueling property Amount of credit How to claim the credit Who qualifies The credit is available to businesses and individuals that place qualified refueling property into service during the tax year. Eligible tax-exempt and governmental entities can also claim the credit through elective pay. Individuals If you install qualified vehicle refueling and recharging property at your home, including electric vehicle charging equipment, you may be eligible for a credit of up to $1,000 for each item of property. For more information see Publication 6027 Individuals, Electric Vehicle Chargers, and the Alternative Fuel Vehicle Refueling Property Credit PDF. Businesses If your business installs qualified vehicle refueling and recharging property, including electric vehicle charging equipment, it may be eligible for a credit of up to $100,000 for each qualified item of property. For more information see Publication 6028 Businesses and the Alternative Fuel Vehicle Refueling Property Credit PDF. Tax-exempt entities Eligible tax-exempt and governmental entities can claim the credit through a new mechanism called elective pay (also known as “direct pay”) of up to $100,000 for each qualified item of property. To claim the credit for your organization, you must notify the seller in writing that you intend to claim via elective pay. Otherwise, the seller can claim the credit if they clearly disclose to you the amount of the credit allowable. However, a seller that claims the credit may be willing to install the eligible property at a lower upfront cost to you by passing its tax savings to your organization. For more information see Publication 6029 Tax-Exempt Entities and the Alternative Fuel Vehicle Refueling Property Credit PDF. Qualified refueling property To qualify for the credit, refueling property must be used to store or dispense clean-burning fuel or to recharge electric motor vehicles. In addition, the property must: Be placed in service during the tax year Have original use that began with the taxpayer Be used primarily in the U.S. and U.S. territories If not business or investment use property, be installed on property used as a main home Be in an eligible census tract (as of January 1, 2023) Be depreciable property if not for personal use As of January 1, 2023, the definition of qualified property includes charging stations for 2- and 3-wheeled electric vehicles (for use on public roads) and includes bidirectional charging equipment. Eligible census tracts Refueling property must be placed in service in an eligible low-income community census tract or non-urban census tract. Approximately two-thirds of Americans are in eligible census tracts. To determine if your business or investment property is in an eligible census tract: In general: Determine your 11-digit census tract geographic identifier (GEOID) under the 2020 census tract boundaries by using the Census Bureau mapping tool. See if your identified 2020 GEOID is included in the IRS-provided list: Appendix B PDF. If your recharging or refueling property is placed in service prior to January 1, 2025, in addition to the directions above, you may alternatively: Determine your 11-digit census tract geographic identifier (GEOID) under the 2015 census tract boundaries by using the Census Bureau mapping tool. See if your identified GEOID under the 2015 census tract boundaries is included in the IRS-provided list: Appendix A PDF. The IRS will periodically publish lists of specific census tracts that meet the requirements, along with instructions on how taxpayers may determine their census tract identifying numbers, in the Federal Register or Internal Revenue Bulletin. Amount of credit As of January 1, 2023, the credit for qualified refueling property subject to depreciation equals 6% with a maximum credit of $100,000 for each single item of property (for each charging port, fuel dispenser, or storage property). Businesses and tax-exempt entities that meet prevailing wage and apprenticeship requirements are eligible for a 30% credit with the same $100,000 limit. For 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, the tax credit equals 30% of the cost with a maximum amount of $1,000 per item (for each charging port, fuel dispenser, or storage property). For property placed in service before January 1, 2023 (including personal property), the credit is 30% of the cost of qualified refueling property with a maximum total credit allowed of $30,000 per location for depreciable property and $1,000 per location for all other property. How to claim the credit Use Form 8911 PDF and Instructions for Form 8911 to determine and report your credit for alternative fuel vehicle refueling property placed in service during the tax year. Partnerships and S corporations must file Form 8911 to claim the credit. All other taxpayers are not required to complete or file the form if their only source for this credit is a partnership or S corporation. Instead, they can report this credit directly on line 1s of Part III of Form 3800, General Business Credit. Special rules The portion of the credit for business or investment use of refueling property is treated as a general business credit carried from the Form 8911 to the Form 3800 and subject to the rules applicable to the general business credit. The portion of the credit for personal use of refueling property cannot exceed the excess of the regular tax liability reduced by certain allowable credits over the tentative minimum tax (if any) for the taxable year as determined on Form 6251. The personal use part of the credit is carried from Form 8911 to the Form 1040, Schedule 3. The basis of any refueling property for which a credit is taken must be reduced by the amount of the credit. The credit is subject to recapture if the property the credit applied for ceases to qualify within 3 full years from the placed-in-service date. Laws and guidance Treasury, IRS issue guidance on the Alternative Fuel Vehicle Refueling Property Credit NPRM: Alternative Fuel Vehicle Refueling Property Credit Notice 2024-64, Modification of Notice 2024-20 PDF Notice 2024-20, Guidance on Satisfying Geographical Requirements of the Section 30C Alternative Fuel Vehicle Refueling Property Credit Treasury, IRS issue guidance on the Qualified Alternative Fuel Vehicle Refueling Property Credit Related Frequently asked questions regarding eligible census tracts for purposes of the Alternative Fuel Vehicle Refueling Property Credit under § 30C Refueling Infrastructure Tax Credit Refueling Infrastructure Tax Credit: FAQ Credits and Deductions Under the Inflation Reduction Act of 2022 About Form 8911, Alternative Fuel Vehicle Refueling Property Credit
