The U.S. Department of Treasury and Internal Revenue Service issued a Notice of Proposed Rulemaking and additional guidance on the Alternative Fuel Vehicle Refueling Property Credit, which was expanded by the Biden-Harris Administration’s Inflation Reduction Act. 

The guidance released today will provide clarity on alternative fuel vehicle refueling property investments for battery-powered electric vehicle charging and other clean fuel infrastructure such as hydrogen refueling. Today’s guidance will lower transportation costs and increase energy security by making clean vehicles like electric and plug-in hybrids more affordable for Americans.

The Alternative Fuel Vehicle Refueling Property Credit (section 30C) works in concert with the New and Previously Owned Clean Vehicle Credits and Advanced Manufacturing Production Credit to create good-paying jobs, lower consumer costs and strengthen America’s battery, critical mineral, and clean vehicle supply chains. The section 30C provision provides a tax credit for up to 30% of the cost of installing qualified alternative fuel vehicle refueling property, such as chargers and hydrogen refueling property. The credit may be claimed by individuals up to $1,000 and by businesses up to $100,000 for each single item of property placed in service in an eligible census tract. The credit may also be claimed by tax-exempt and governmental entities using elective pay or, alternatively, by the sellers of eligible property to such entities. An eligible census tract is any population census tract that is a low-income community or that is not an urban area. Approximately two-thirds of Americans live in eligible census tracts. Business and tax-exempt governmental entities claiming the Alternative Fuel Vehicle Refueling Property Credit can receive an enhanced credit if they are paying workers prevailing wages and using registered apprentices to install the equipment.

“The steps we are taking today will help lower transportation costs for Americans and strengthen our energy security,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo. “The Biden-Harris administration is committed to saving Americans money as we grow a clean energy economy, and today’s announcement marks important progress.”