IRS Section 30C
Alternative Fuel & Vehicle Refueling Property Transferable Tax Credit

Summary:

The Section 30C tax credit is a federally transferable tax credit, created through the Inflation Reduction Act (IRA) which can be used to offset the cost of installing EV charging stations. The credit is worth up to 30% of the cost of the station, with a maximum of $100,000 per station. The full 30% of the transferable tax credit is only available if the station is located in an eligible census tract and meets certain prevailing wage and apprenticeship requirements.

Eligible census tracts must meet one of the following:

  1. Charging stations located in a “low-income community” defined by IRS Section 45D(e). The limitation are familiar to the New Markets Tax Credits in IRS Section 45D.

    A “low-income community” is a census tract with a poverty rate of at least 20 percent. The definition of “low income community” is also met if the tract is not located in a metropolitan area and the median family income for such tract does not exceed 80 percent of the applicable statewide median family income.

    Applicable census tracts can be searched here

  2. A census tract that is “not an urban area.” The definition of an urban area can be found here

Date in Effect:

January 1, 2023 - December 31, 2032

Calculation Details:

Internal Revenue Service Section 30C carries a maximum of a 30% credit ($100,000 maximum/charger) of cost. The base credit starts at 6% if prevailing wage, apprentice, and low-income census tract requirements are not met.

MIN([Total Capital Spent] OR [$100,000]) x [6% / 30% Multiplier] = Total Transferable Tax Credit

Filing Requirements:

  • Completion of IRS Form 8911

  • Register and obtain unique “identifier number” from the Internal Revenue Service

  • File tax return for self, or if transferring the credit for cash, then reflect the sale on both buyer and seller’s tax return

Direct Pay:

Direct Pay is an election that allows the taxpayer to sell directly to the Internal Revenue Service. Section 30C transferable tax credits allow the following entities to make this election:

  • Tax-exempt organizations

  • States

  • Political subdivisions

  • The Tennessee Valley Authority

  • Indian Tribal governments

  • Alaska Native Corporations

  • Rural electricity co-ops