Tax Insights

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It’s back but did we miss it? Alternative Fuel Vehicle Refueling Property Tax Credit

It’s back but did we even know it existed? You may not have known, but there is a tax credit for the cost of charging infrastructure to power so called clean vehicles with alternative fuel. The credit applies to both business and individuals. For a business, the tax credit can be up to $30,000 for property subject to depreciation for each business location. For an individual the credit is up to $1,000 for any personal use property. This tax credit expired at the end of 2017 but was reinstated retroactively as part of the “extenders” provisions of the Further Consolidated Appropriations Act, 2020 signed by President Trump on December 20, 2019.

Find out what other tax breaks have been extended

Fueling equipment for natural gas, propane, liquified hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed through December 31, 2020 is eligible for tax credit of 30% of the cost, not to exceed the limits mentioned above. The credits are calculated via IRS form 8911 but you’ll want to seek the advice of your CPA for all the details and restrictions.

As more and more automakers are rolling out plug-in-electric vehicles (PEVs) as well as other clean type vehicles, it’s important to remember this tax credit exists and perhaps now is the time to act in case the credit is not extended further. More and more infrastructure will be needed to accommodate the charging and fueling of these vehicles and the government is trying to encourage development with this tax credit. One study showed that as companies provided charging stations for PEVs, their employees were six times as likely to drive PEVs as the general population.

For more information, check out this article about how to claim a refund for paying property taxes

For any questions regarding the tax credit for alternative fuel , or other tax and accounting issues, please don’t hesitate to contact your Henry+Horne tax professional.

Dale F. Jensen, CPA