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. 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. 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 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. See the Department of Energy's map of eligible locations, established in Notice 2024-20PDF. 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. Businesses meeting prevailing wage and apprenticeship requirements may be eligible for a 30% credit with the same $100,000 limit. For qualifying property not subject to depreciation, the 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 claim the credit Use Form 8911PDF 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 8911PDF and Instructions for Form 8911 for Certain Filers with 2023 Short Years. 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. We're developing additional forms, instructions and guidance for the 2023 tax year. Check back for updates. 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 Notice 2024-20, Guidance on Satisfying Geographical Requirements of the Section 30C Alternative Fuel Vehicle Refueling Property CreditPDF 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
