Alternative Fuel Infrastructure Tax Credit
Stored: Alternative Fuel Infrastructure Tax Credit
| Type | Initiative |
|---|---|
| Sponsor Organization | Office of Energy Efficiency and Renewable Energy |
| Top Organization | Department of Energy |
| Creation Legislation | Inflation Reduction Act |
| Website | Website |
| Purpose | Tax credits encourage installing refueling stations for electric, hydrogen, and clean fuel vehicles to expand infrastructure and boost adoption of alternative fuel vehicles nationwide. |
| Program Start | 2023 |
| Initial Funding | |
| Duration | Until December 31, 2032 |
| Historic | No |
Alternative Fuel Infrastructure Tax Credit offers tax incentives for installing alternative fuel vehicle (AFV) refueling infrastructure, including equipment for electric, hydrogen, natural gas, propane, and other clean fuels. It aims to accelerate the expansion of refueling stations, thereby promoting the use of AFVs to reduce greenhouse gas emissions and enhance energy security.[1]
Goals
- Increase the availability of alternative fuel refueling infrastructure.[2]
- Stimulate market demand for AFVs by ensuring refueling convenience.
- Support the transition to cleaner transportation options.
Organization
The Alternative Fuel Infrastructure Tax Credit is managed by the Office of Energy Efficiency and Renewable Energy (EERE) within the U.S. Department of Energy. The initiative operates under the broader framework of EERE's Vehicle Technologies Office, with oversight by the Assistant Secretary for EERE. Funding for the credit is provided through tax policy rather than direct budgetary allocations.
The leader of the program holds the title/position of **Assistant Secretary for Energy Efficiency and Renewable Energy**.
Partners
- No specific partnerships are listed, but the initiative benefits from coordination with various stakeholders in the transportation and energy sectors.
History
This tax credit was reauthorized and expanded by the **Inflation Reduction Act** in 2022, extending eligibility and increasing the scope of covered fuels and technologies compared to previous iterations. It was designed to address the infrastructure gap for alternative fuels, especially in light of increasing electric vehicle adoption. The program has evolved from earlier versions that had less comprehensive coverage, focusing on broader accessibility and inclusion of hydrogen and other fuels.
Funding
The initiative does not have a direct funding amount but operates through tax credits. Businesses and individuals can claim up to 30% of the cost of qualified refueling infrastructure, with a cap of $100,000 per item installed, for installations between January 1, 2023, and December 31, 2032. The funding mechanism is tax expenditure, meaning it reduces future tax liabilities for eligible entities.
Implementation
The implementation involves:
- Providing tax guidance and eligibility criteria through the IRS.
- Supporting the development of refueling infrastructure in low-income and rural areas.
- Regular updates to the list of qualified technologies and fuels.
The program has a defined end date in 2032, after which the credit will no longer be available unless extended by new legislation.
Related
External links
- https://www.energy.gov/eere/alternative-fuel-infrastructure-tax-credit
- wikipedia:Alternative Fuel Infrastructure Tax Credit
Social media
- No specific social media accounts; follow the Department of Energy for updates.
References
- ↑ "Alternative Fuel Infrastructure Tax Credit". https://www.energy.gov/eere/alternative-fuel-infrastructure-tax-credit. Retrieved January 30, 2025.
- ↑ "Alternative Fuel Infrastructure Tax Credit". https://www.energy.gov/eere/alternative-fuel-infrastructure-tax-credit. Retrieved January 30, 2025.