Program Name: | Alternative Fuel Vehicle Refueling Property Credit |
Program Sponsor: | U.S. Internal Revenue Service |
Program Type: | Tax Credits |
Technology: | Energy Efficiency |
Fuel: | Electricity |
Eligibility: | Business’ and Individuals |
Cost: | None |
Description
If you install qualified vehicle refueling and 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 credit allowed is based on the placed -in-service date for the qualifying property.
Eligibility
The credit is available to businesses and individuals that place qualified refueling property into service during the tax year.
How the Program Works
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
As of January 1, 2023, qualifying property is limited to property placed in service in eligible census tracts. An eligible census tract is a population census tract that is a low-income community as described in section 45D(e) or that is not an urban area.
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.
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.
Businesses meeting prevailing wage and apprenticeship requirements may be 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 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 Apply
Use Form 8911 to figure and report your credit for alternative fuel vehicle refueling property placed in service during the 2022 tax year. See also Instructions for Form 8911.
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.
Contact Information
Internal Revenue Service (IRS)
1111 Constitution Avenue, N.W.
Washington, D.C. 20224
1(800) 829-1040