The U.S. Department of the Treasury and Internal Revenue Service on Jan. 19 released additional guidance aimed at providing clarity on eligibility for tax incentives to install electric vehicle charging stations and other alternative fuel refueling stations.
The Alternative Fuel Vehicle Refueling Property Credit (30C) provides a credit for up to 30% of the cost of qualified alternative fuel vehicle refueling property placed in service by the taxpayer.
The credit may be claimed by individuals for home electric vehicle charging and other refueling equipment and by businesses.
The credit with respect to any single item of property is limited to $100,000 for business property, and $1,000 for personal property.
The credit can also be claimed through “elective pay” (often called direct pay), meaning that elective pay-eligible entities such as governments and tax-exempt organizations, including public power utilities, making investments in EV infrastructure can benefit.
While expanding the 30C credit, the IRA added a requirement that qualified property must be placed in service in an eligible census tract.
An eligible census tract is any population census tract that is a low-income community or that is not an urban area.
The Jan. 19 Treasury/IRS notice announces an intent to propose regulations to define eligible census tract and includes two appendices that provide the list of eligible census tracts.
Low-income community census tracts follow the definition provided for purposes of the new markets tax credit.
Non-urban census tracts would be those tracts within which at least 10% of the census blocks are outside of urban areas. See Appendix A and Appendix B for eligible census tracts.
