Article
Find out if your EV fueling station is eligible for a tax credit
Feb. 22, 2024 · Authored by Gabriel Sermeno, Craig Lammlin
The IRS issued Notice 2024-20, which details geographical requirements for alternative fuel vehicle refueling credit property for taxpayers or entities installing electric vehicle (EV) charging stations pursuant to Internal Revenue Code Section 30C.
Issued on Jan. 19, 2023, the notice provides taxpayers with a list of eligible census tracts and helps with determining if IRC Section 30C property is in an eligible census tract. The notice also clarifies the interaction between Section 30C and Section 45D as they relate to eligible census tracts.
View eligibility details and more to see if you may be able to leverage this opportunity.
Who can use this opportunity
This opportunity applies to all taxpayers considering installing EV charging stations or other alternative fuel vehicle refueling property under the Inflation Reduction Act that wish to claim the credit on their federal income tax return or that wish to transfer, either through the sale or purchase, the credits.
In addition, this opportunity applies to applicable entities, such as government entities, not-for-profit, and Tribes, considering elective pay, also known as direct pay, from the installation of EV charging stations or other alternative fuel vehicle refueling property under the Inflation Reduction Act.
Background on alternative fuel vehicle refueling credit property
Under the Inflation Reduction Act, IRC Section 30C was modified to provide for as much as a 30% credit for installing alternative fuel vehicle refueling property, such as EV charging stations, up to $100,000.
IRC Section 6417 was also added to provide a mechanism where applicable entities, such as Tribes, governmental entities, or not-for-profit entities, could receive the credit generated under Section 30C via a mechanism referred to as elective payment or direct pay
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The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.