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VEHICLE REFUELING PROPERTY TAX

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.

Electric Car

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 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.  

 

Qualified Commercial Clean Vehicle Tax Credit (EV Incentive) 

 

 

 

Section 13403 of The Inflation Reduction Act of 2022 (H.R. 5376) established a tax credit for qualified commercial clean vehicles purchased on or after January 1, 2023. To qualify, the vehicle must have a gross vehicle weight rating of less than 14,000 pounds and have a battery rating of not less than 7 kilowatt hours. Mobile machinery, as defined in section 4053(8) (including vehicles that are not designed to perform a function of transporting a load over the public highways) can exceed the 14,000 pound weight limit, but must have a battery capacity of not less than 15 kilowatt hours. The tax credit is worth 30% of the cost, up to $7,500 for vehicles less than 14,000 pounds, or $40,000 for mobile machinery.  

 

Section 13801 of The Inflation Reduction Act of 2022 also established procedures for other parties to monetize certain tax credits, including this one, for equipment placed in service on or after January 1, 2023 and through December 31, 2032. 

DSIRE (dsireusa.org) 

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.  

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Vehicle Tax Credits
Property Tax Credit
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