Full Title: Federal Incentive for Alternative Fuel Refueling Infrastructure, IRC § 30C
Author(s): The Transport Project
Publisher(s): The Transport Project
Publication Date: September 30, 2024
Full Text: Download Resource
Description (excerpt):
The Energy Policy Act (EPAct) of 2005 (PL 109–58, § 1342, 26 USC 30C) created an income tax credit equal to 30 percent of the cost of installing alternative fuel refueling equipment including equipment used to dispense natural gas and hydrogen. To qualify for the credit, the fueling equipment also must be used to refuel motor vehicles, which are defined as vehicles that have been manufactured primarily for “use on public streets, roads, and highways.” Over the years various improvements have been enacted by Congress.
Most recently, the Inflation Reduction Act (IRA) of 2022 (PL 117–169, § 13404) amended section 30C, increasing the economic incentive for fueling infrastructure investments, and putting in place various new requirements. The credit previously was worth 30% up to a maximum of $30,000 in the case of business property and $1,000 for home refueling. The tax credit also previously was limited to one credit per location per year (i.e. a fueling station was limited to one tax credit of $30,000 per year regardless of the number of fuel dispensers or cost). As of January 1, 2023, the credit now has a maximum value of $100,000 for business property and applies to each single item of qualifying property installed at a location. The other major change is that now qualifying refueling property must be placed in service within a low-income community or within a non-urban census tract.
This fact sheet includes updated information addressing the IRA 2022 changes and rule changes proposed by the Internal Revenue Service on Sept. 18, 2024. It is intended as a guide to highlight some of the main issues with respect to this tax credit, but it is not a comprehensive review of requirements, nor should it be considered tax advice.