For The Alternative Fuel Infrastructure Tax Credit
Fueling equipment for natural gas, propane, liquefied hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed through December 31, 2022, is eligible for a tax credit of 30% of the cost, not to exceed $30,000.
Tax Credits
The 2022 Inflation Reduction Act extends the Alternative Fuel Vehicle Refueling Property Credit, which originally expired in December of 2021. Businesses receive $30,000 for installing qualifying electric vehicle charging stations in 2022.
Note that beginning in 2023, updated eligibility requirements will impact which properties can qualify.
Visit the U.S. Department of Energy for details.
2023 Tax Qualification Requirement Changes
Starting in January 2023, many businesses will no longer qualify for the federal tax credit. Although, it’s notable that qualifying businesses will receive more money than before. Per-site credits will also shift to per-station credits, creating thousands of dollars in savings for qualified businesses.
Qualifying businesses will receive a credit of 6% of project costs, up to $100,000 per station. Although, chargers must be located in census areas with:
- 20% or higher poverty rat
- Areas in which the median family income is less than or equal to 80% of the statewide median
FAQ
What is the Alternative Fuel Infrastructure Tax Credit?
The 2022 Inflation Reduction Act extends the Alternative Fuel Vehicle Refueling Property Credit, which originally expired in December of 2021. Businesses receive $30,000 for installing qualifying electric vehicle charging stations in 2022.
Note that beginning in 2023, updated eligibility requirements will impact which properties can qualify.
Visit the U.S. Department of Energy for details.
How do I claim the tax credit?
Submit form 8911 to the IRS to claim the federal tax credit.
You can find that form on the IRS Forms and Publications website.
Can I combine this tax credit with other incentives?
The tax credit can be used simultaneously with other incentives and rebates. Note that the Alternative Fuel Vehicle Refueling Property Tax Credit can only be used for the out-of-pocket costs incurred during charger installation, which means that funds cannot be used for other projects.
How can I spend this tax credit?
The Alternative Fuel Infrastructure Tax Credit applies to out-of-pocket costs incurred during the construction of infrastructure and installation of “qualified equipment.” Permitting fees and inspection fees are not covered by the credit.
Businesses with chargers at more than one site can qualify for the incentive at each location.
What other incentive could I qualify for?
A complete list is on the Department of Energy’s website, but the following are some of the more common ones.
- Fueling equipment for natural gas or diesel fuels containing at least 20% biodiesel are eligible for a 30% tax credit.
- Qualifying residential properties that install chargers are eligible for a $1,000 tax credit.
