IRS Alternative Fuel Vehicle Refueling Property Credit (2024-2025)

Quick Facts

• Credit value: Covers 30% of installation costs for qualified refueling property, up to $1,000 for home chargers and $100,000 per item for commercial projects meeting geographic requirements.
• Eligible equipment: Level 2 and DC fast electric vehicle chargers, bidirectional charging equipment, and hydrogen, natural gas, propane, or biodiesel fueling stations.
• Geographic rules: Commercial projects placed in service after 2022 must be in census tracts identified as low-income or non-urban. Use IRS mapping tools to confirm eligibility.
• Stackability: Can pair with utility rebates, state tax credits, NEVI grants, or Inflation Reduction Act incentives to slash net costs.
• Best first step: Validate census tract eligibility and gather invoices and labor costs before filing Form 8911.

Why This Credit Matters

Electric vehicle adoption is surging, but installation costs for home and public chargers remain a barrier. The Inflation Reduction Act expanded this credit dramatically, yet many installers miss it due to the new census tract requirement. Including a detailed guide in FindMyMoney helps homeowners, landlords, fleets, and small businesses unlock federal tax savings while building charging infrastructure.

Eligibility Checklist

1. Qualified property: Equipment must dispense or store alternative fuel and meet federal safety standards. For EV chargers, ensure they provide a minimum 240-volt outlet (Level 2) or DC fast charging.
2. Placement date: Property must be placed in service during the tax year you claim the credit.
3. Location requirement (commercial): Use the Department of Energy’s Qualified Census Tract locator or IRS Notice 2024-20 guidance to verify non-urban or low-income status.
4. Use requirement: Property must be available to the general public or for fleet fueling. Dual-use equipment (personal and business) must allocate costs accordingly.

Claiming the Credit

1. Track expenses: Save itemized invoices for hardware, installation labor, trenching, electrical upgrades, and permitting fees. Soft costs like network subscriptions do not qualify.
2. Complete Form 8911: Report total cost, apply the 30% rate, and subtract any utility or state incentives that reduce basis.
3. Coordinate with other credits: Businesses claiming bonus depreciation or Section 179 expensing must adjust basis. Avoid double-counting with clean commercial vehicle credits.
4. File with your tax return: Individuals attach Form 8911 to Form 1040; businesses include it with Form 1120/1065. Carryforwards apply if the credit exceeds tax liability.
5. Maintain records: Keep documentation for at least three years in case of IRS examination, including proof of census tract eligibility and placed-in-service dates.

Strategies for Different Users

• Homeowners: Pair the credit with utility rebates and state incentives. Schedule installation before year-end to claim the credit sooner. Consider smart chargers that enable time-of-use savings.
• Landlords and HOAs: Install shared charging in apartment garages; designate costs per charger to maximize the $100,000 per-item cap. Offer access passes to residents to demonstrate public availability if needed.
• Small businesses: Bundle projects with NEVI or local grants. Document how chargers support fleet electrification or customer access to strengthen additional funding applications.
• Fleets: Coordinate with IRS Form 8936 (Clean Commercial Vehicle Credit) to electrify vehicles and infrastructure simultaneously. Track demand charges and explore managed charging to control operating costs.

Frequently Asked Questions

Does the credit apply to used equipment? No. Property must be new when placed in service.

Can I claim the credit for portable chargers? Only if permanently installed and hardwired; portable plug-in units typically do not qualify.

What if the project spans multiple tax years? Claim costs in the year each unit is placed in service. Maintain a project ledger to track partial completions.

Insider Tips to Maximize the Refueling Credit

• Run a census tract analysis before signing contracts; relocating a charger a few blocks can determine eligibility.
• If your tax liability is low, coordinate with tax advisors about carrying the credit forward or timing installation with higher-profit years.
• For commercial projects, negotiate with installers to break out equipment costs per charger to leverage the per-item cap fully.
• Combine this credit with Inflation Reduction Act energy efficiency grants to upgrade electrical panels or add solar for onsite generation.
• Publicize your charging location on PlugShare or the Alternative Fuels Data Center to attract customers and demonstrate public availability for compliance.