The U.S. Department of the Treasury and Internal Revenue Service (IRS) recently issued a proposed rule and additional guidance on the Alternative Fuel Vehicle Refueling Property Credit.
The guidance provides clarity on alternative fuel vehicle refueling property investments for clean fuel infrastructure. The departments expect the guidance will make clean vehicles like electric and plug-in hybrids more affordable, which will lower transportation costs and increase energy security.
“Today’s announcement is a key step forward in our efforts to reduce transportation costs for Americans and build out the U.S. domestic clean vehicle supply chain with good paying jobs,” U.S. Deputy Energy Secretary David M. Turk said. “Under the Biden-Harris Administration, (more than) $120 billion in private investment has been so far announced for battery manufacturing, the majority of which is headed to vehicles, as well as (more than) $40 billion in other electric vehicle component manufacturing. This new tax credit will further help consumers and businesses across the country make the affordable choice of clean vehicles.”
Up to 30 percent of the cost of installing EV charging infrastructure can be claimed as a federal tax credit. This includes installation costs and expenses related to the charger itself such as conduit and wiring, panel upgrades, and mounting hardware.