26 USC 30C - Alternative fuel vehicle refueling property credit

United States Code

USC most recently checked for updates: Jan 15, 2025

§ 30B. Alternative motor vehicle credit

§ 30D. Clean vehicle credit

U.S. Code
Notes

§ 30C.

Alternative fuel vehicle refueling property credit

(a)

Credit allowed

There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent (6 percent in the case of property of a character subject to depreciation) of the cost of any qualified alternative fuel vehicle refueling property placed in service by the taxpayer during the taxable year.

(b)

Limitation

The credit allowed under subsection (a) with respect to any single item of qualified alternative fuel vehicle refueling property placed in service by the taxpayer during the taxable year shall not exceed—

(1)

$100,000 in the case of any such item of property of a character subject to an allowance for depreciation, and

(2)

$1,000 in any other case.

(c)

Qualified alternative fuel vehicle refueling property

For purposes of this section—

(1)

In general

The term “qualified alternative fuel vehicle refueling property” has the same meaning as the term “qualified clean-fuel vehicle refueling property” would have under section 179A if—

(A)

paragraph (1) of section 179A(d) did not apply to property installed on property which is used as the principal residence (within the meaning of section 121) of the taxpayer, and

(B)

only the following were treated as clean-burning fuels for purposes of section 179A(d):

(i)

Any fuel at least 85 percent of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquified natural gas, liquefied petroleum gas, or hydrogen.

(ii)

Any mixture—

(I)

which consists of two or more of the following: biodiesel (as defined in section 40A(d)(1)), diesel fuel (as defined in section 4083(a)(3)), or kerosene, and

(II)

at least 20 percent of the volume of which consists of biodiesel (as so defined) determined without regard to any kerosene in such mixture.

(iii)

Electricity.

(2)

Bidirectional charging equipment

Property shall not fail to be treated as qualified alternative fuel vehicle refueling property solely because such property—

(A)

is capable of charging the battery of a motor vehicle propelled by electricity, and

(B)

allows discharging electricity from such battery to an electric load external to such motor vehicle.

(3)

Property required to be located in eligible census tracts

(A)

In general

Property shall not be treated as qualified alternative fuel vehicle refueling property unless such property is placed in service in an eligible census tract.

(B)

Eligible census tract

(i)

In general

For purposes of this paragraph, the term “eligible census tract” means any population census tract which—

(I)

is described in section 45D(e), or

(II)

is not an urban area.

(ii)

Urban area

For purposes of clause (i)(II), the term “urban area” means a census tract (as defined by the Bureau of the Census) which, according to the most recent decennial census, has been designated as an urban area by the Secretary of Commerce.

(d)

Application with other credits

(1)

Business credit treated as part of general business credit

So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).

(2)

Personal credit

The credit allowed under subsection (a) (after the application of paragraph (1)) for any taxable year shall not exceed the excess (if any) of—

(A)

the regular tax liability (as defined in section 26(b)) reduced by the sum of the credits allowable under subpart A and section 27, over

(B)

the tentative minimum tax for the taxable year.

(e)

Special rules

For purposes of this section—

(1)

Reduction in basis

For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed (determined without regard to subsection (d)).

(2)

Property used by tax-exempt entity

In the case of any qualified alternative fuel vehicle refueling property the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such property to the person or entity using such property shall be treated as the taxpayer that placed such property in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such property (determined without regard to subsection (d)). For purposes of subsection (d), property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation.

(3)

Property used outside United States not qualified

No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.

(4)

Election not to take credit

No credit shall be allowed under subsection (a) for any property if the taxpayer elects not to have this section apply to such property.

(5)

Recapture rules

Rules similar to the rules of section 179A(e)(4) shall apply.

(6)

Reference

For purposes of this section, any reference to section 179A shall be treated as a reference to such section as in effect immediately before its repeal.

(f)

Special rule for electric charging stations for certain vehicles with 2 or 3 wheels

For purposes of this section—

(1)

In general

The term “qualified alternative fuel vehicle refueling property” includes any property described in subsection (c) for the recharging of a motor vehicle described in paragraph (2), but only if such property—

(A)

meets the requirements of subsection (a)(2),1

 So in original. There is no subsec. (a)(2) in this section.

and

(B)

is of a character subject to depreciation.

(2)

Motor vehicle

A motor vehicle is described in this paragraph if the motor vehicle—

(A)

is manufactured primarily for use on public streets, roads, or highways (not including a vehicle operated exclusively on a rail or rails),

(B)

has 2 or 3 wheels, and

(C)

is propelled by electricity.

(g)

Wage and apprenticeship requirements

(1)

Increased credit amount

(A)

In general

In the case of any qualified alternative fuel vehicle refueling project which satisfies the requirements of subparagraph (C), the amount of the credit determined under subsection (a) for any qualified alternative fuel vehicle refueling property of a character subject to an allowance for depreciation which is part of such project shall be equal to such amount (determined without regard to this sentence) multiplied by 5.

(B)

Qualified alternative fuel vehicle refueling project

For purposes of this subsection, the term “qualified alternative fuel vehicle refueling project” means a project consisting of one or more properties that are part of a single project.

(C)

Project requirements

A project meets the requirements of this subparagraph if it is one of the following:

(i)

A project the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (2)(A) and (3).

(ii)

A project which satisfies the requirements of paragraphs (2)(A) and (3).

(2)

Prevailing wage requirements

(A)

In general

The requirements described in this subparagraph with respect to any qualified alternative fuel vehicle refueling project are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in the construction of any qualified alternative fuel vehicle refueling property which is part of such project shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such project is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code.

(B)

Correction and penalty related to failure to satisfy wage requirements

Rules similar to the rules of section 45(b)(7)(B) shall apply.

(3)

Apprenticeship requirements

Rules similar to the rules of section 45(b)(8) shall apply.

(4)

Regulations and guidance

The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.

(h)

Regulations

The Secretary shall prescribe such regulations as necessary to carry out the provisions of this section.

(i)

Termination

This section shall not apply to any property placed in service after December 31, 2032.

(Added Pub. L. 109–58, title XIII, § 1342(a), Aug. 8, 2005, 119 Stat. 1049; amended Pub. L. 109–135, title IV, §§ 402(k), 412(d), Dec. 21, 2005, 119 Stat. 2615, 2636; Pub. L. 110–172, § 6(b), Dec. 29, 2007, 121 Stat. 2479; Pub. L. 110–343, div. B, title II, § 207(a), (b), Oct. 3, 2008, 122 Stat. 3839; Pub. L. 111–5, div. B, title I, §§ 1123(a), 1142(b)(3), 1144(b)(2), Feb. 17, 2009, 123 Stat. 325, 331, 332; Pub. L. 111–312, title VII, § 711(a), Dec. 17, 2010, 124 Stat. 3315; Pub. L. 112–240, title IV, § 402(a), Jan. 2, 2013, 126 Stat. 2337; Pub. L. 113–295, div. A, title I, § 161(a), title II, §§ 218(b), 221(a)(34)(B), Dec. 19, 2014, 128 Stat. 4023, 4035, 4042; Pub. L. 114–113, div. Q, title I, § 182(a), Dec. 18, 2015, 129 Stat. 3072; Pub. L. 115–123, div. D, title I, § 40404(a), Feb. 9, 2018, 132 Stat. 148; Pub. L. 115–141, div. U, title IV, § 401(b)(3), Mar. 23, 2018, 132 Stat. 1201; Pub. L. 116–94, div. Q, title I, § 125(a), Dec. 20, 2019, 133 Stat. 3231; Pub. L. 116–260, div. EE, title I, § 143(a), Dec. 27, 2020, 134 Stat. 3054; Pub. L. 117–169, title I, §§ 13404(a)–(e), 13704(b)(2), Aug. 16, 2022, 136 Stat. 1966–1968, 2002.)

cite as: 26 USC 30C