Summary
- Guidance released on Alternative Fuel Vehicle Refueling Property Credit as expanded by the Biden-Harris Administration
- Credit provides up to 30% of the cost of installing clean vehicle infrastructure like chargers and hydrogen refueling property
- Businesses and individuals can claim the credit, with enhanced credit for businesses paying workers prevailing wages
- NPRM open for public comment for 60 days to receive stakeholder input
- Biden-Harris Administration has attracted over $120 billion in private investment for battery manufacturing, benefiting clean vehicles.
Article
The U.S. Department of the Treasury and Internal Revenue Service (IRS) have issued a Notice of Proposed Rulemaking (NPRM) and additional guidance on the Alternative Fuel Vehicle Refueling Property Credit, which was expanded by the Biden–Harris Administration’s Inflation Reduction Act. This credit aims to provide clarity on investments in alternative fuel vehicle refueling properties, such as battery-powered electric vehicle charging stations and hydrogen refueling infrastructure. By making clean vehicles more affordable for Americans, this guidance will help lower transportation costs and increase energy security. The credit provides a tax credit of up to 30% of the cost of installing qualified alternative fuel vehicle refueling property, benefiting individuals, businesses, tax-exempt entities, and governmental entities. An eligible census tract includes low-income communities or non-urban areas, encompassing approximately two-thirds of the U.S. population.
The Alternative Fuel Vehicle Refueling Property Credit, also known as section 30C, works in conjunction with other credits to create jobs, lower costs, and strengthen the country’s battery, critical mineral, and clean vehicle supply chains. Businesses and tax-exempt governmental entities can claim an enhanced credit if they pay prevailing wages and use registered apprentices to install the equipment. The Biden–Harris Administration has facilitated over $120 billion in private investments for battery manufacturing, with a majority going towards vehicles, as well as over $40 billion in other electric vehicle component manufacturing. This new tax credit aligns with the administration’s efforts to support clean vehicle adoption and build out the domestic clean vehicle supply chain with high-paying jobs.
The NPRM for the Alternative Fuel Vehicle Refueling Property Credit is open for public comment for 60 days, with a public hearing to be scheduled if requested. The Treasury and IRS welcome further input and stakeholder perspectives as the implementation of the Inflation Reduction Act progresses. The guidance provided by the NPRM will help in clarifying the eligibility criteria for claiming the tax credit and ensure that the benefits reach a wide range of entities involved in the installation of alternative fuel vehicle refueling properties. Public comments and feedback on the NPRM will play a crucial role in shaping regulations and ensuring that the intended objectives of the credit are met effectively.
For more information on the NPRM and the Alternative Fuel Vehicle Refueling Property Credit, individuals and businesses can visit the U.S. Department of the Treasury’s website. This resource will provide detailed information on the application process, eligibility requirements, and the potential benefits of claiming the tax credit. By encouraging the installation of clean vehicle infrastructure and reducing barriers to entry for consumers and businesses, the credit aims to accelerate the adoption of electric vehicles and other clean transportation alternatives. Stakeholders in the clean energy and transportation sectors can leverage this opportunity to contribute to the expansion of clean vehicle technologies and infrastructure across the country.
In conclusion, the Alternative Fuel Vehicle Refueling Property Credit, alongside other clean vehicle incentives, is a key component of the Biden–Harris Administration’s efforts to promote a cleaner, more sustainable transportation system in the U.S. By lowering costs for clean vehicle infrastructure and transportation, the credit aims to make electric and plug-in hybrid vehicles more accessible to a broader range of consumers. With ongoing investments in battery manufacturing and electric vehicle components, the administration is working towards building a robust domestic supply chain for clean vehicles. Public feedback and stakeholder engagement will play a vital role in shaping the implementation of the credit and ensuring its effectiveness in driving the adoption of clean vehicles and reducing greenhouse gas emissions in the transportation sector.
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