COMMERCIAL EV PROPERTY TAX CREDIT
The Commercial Property Tax Credit can assist you in your corportation's efforts to reduce company carbon footprint
Alternative Fuel Vehicle Refueling Property Tax Credit
(Corporate EV Incentive)
Note: Section 13404 of The Inflation Reduction Act of 2022 (H.R. 5376) modified and extended the expiration date for the Alternative Fuel Vehicle Refueling Property Credit. Among other changes, it reduced the base tax credit from 30% to 6%, but allows the full 30% for projects that meet certain labor standards. The summary below described the credit as modified by H.R. 5376.
Qualified alternative fuel vehicle refueling equipment, including electric vehicle charging equipment, is eligible for a tax credit of 6% up to $100,000 for each single item of property. Projects that meet the following wage and apprenticeship requirements are entitled to a larger tax credit of 30%. The taxpayer must ensure that all laborers and mechanics employed by the taxpayer or any contractor or subcontractor engaged in building the project be paid prevailing wages. The project must also employ a certain percentage of apprentices. The project must also be located in a census tract described in section 45D(e) of the IRS Code, or not in an urban area. The Department of the Treasury issued Initial Guidance on these requirements on November 30, 2022. According to law, the labor provisions apply to projects for which construction begins 60 days or more after Treasury publishes its guidance. Given the publishing date of November 30, 2022, the effective date for the labor provisions is January 30, 2023.