Alternative Fuel Vehicle Refueling Property Credit
Sec. 30C EV Charging Station Credit“Per-Charger” Savings Make the Credit More Valuable than Ever
Over $1 Billion
in Tax Savings
30% Decrease
in Tax Liability
Multidisciplinary
Team
(Attorneys, Tax Professionals, Engineers)
PRECISE | RESPONSIVE | TRUSTWORTHY
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What is the Alternative Fuel Vehicle Refueling Property Credit/EV Charging Station Credit?
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Federal incentive incentivizing the installation of Qualified Refueling Property: property used to recharge electrical vehicles or to store/dispense clean burning fuel
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Dollar-for-dollar Credit that directly reduces tax liability by up to 30%
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Eligible costs include equipment and installation of the charger and “functionally interdependent” components (pedestals, concrete pads, electric panel upgrades)
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In order to qualify for the Credit, the Qualified Refueling Property must be placed-in-service between 1/1/2023-06/30/2026
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Who can Claim the Alternative Fuel Vehicle Refueling Property Credit/EV Charging Station Credit?
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Generally claimed by the taxpayer that places Qualified Refueling Property into service, often multifamily property owners and developers, or owners of public EV charging stations
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The claiming taxpayer must be the “first user,” and must be placing the property into service in an “eligible census tract”
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Tax-exempt organizations may benefit from the Credit via elective pay
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Why Consider the Alternative Fuel Vehicle Refueling Property Credit/EV Charging Station Credit?
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Excellent way to offset the cost of installing Qualified Refueling Property while attracting EV owners to your business or multifamily property
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Base rate of 6%, with a 5x increase if Prevailing Wage and Apprenticeship Requirements are met
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More lucrative than before – IRA has shifted the benefit cap from per-site to per-charger, meaning that one location may now claim the Credit multiple time
What Could Your EV Charging Station Credit Look Like?
EV Charging Station Case Studies
New Apartment Building
City Code Mandates
1 EV charging station for every 3 units
$240,000
Installation of 30 total charging stations
Credit Amount
$72,000 plus bonus depreciation
Alternative Fuel Vehicle Refueling Property Credit/EV Charging Station Credit/Sec. 30C FAQs
Is the Alternative Fuel Vehicle Refueling Property Credit the same thing as the EV Charging Station Credit and the 30C Credit?
Yes. The “Alternative Fuel Vehicle Refueling Property Credit” is the official title of this incentive, but most people think of this as the “EV Charging Station Credit,” since the incentive is commonly applied to charging stations for electric vehicles. The incentive is also referred to as the “30C Credit,” since the relevant legislation is located in Sec. 30C of the tax code.
What Exactly is Qualified Refueling Property?
There are 2 main categories of Qualified Refueling Property:
1. Property used to store and dispense clean burning fuels including ethanol, natural gas, hydrogen, biodiesel, etc.
2. Property used to recharge electric vehicles, including bidirectional charging stations and charging stations for 2 or 3 wheeled vehicles
In order to be considered Qualified Refueling Property, the following must also be true:
· The property must be subject to depreciation
· The property’s original use began with the taxpayer
· The property must be located in an eligible census tract
· The property was placed-in-service during the tax year in which the Credit is being claimed
How Do I Know if My Alternative Fuel Refueling Property is in an “Eligible Census Tract”?
Qualified refueling property must be located in an eligible low-income community census tract or non-urban census tract.
The Capstan team can help you determine whether your property falls within an eligible tract.
What is the Base Credit Amount of the EV Charging Station Credit?
The base Credit amount is 6% of the amount invested into the Qualified Refueling Property. That rate will quintuple to 30% if the Prevailing Wage and Apprenticeship (PWA) Requirements are met.
What are the Prevailing Wage and Apprenticeship (PWA) Requirements?
The “Prevailing Wage Requirements” state that contractors must pay mechanics and laborers no less than the prevailing wages required for federal work. The exact wage will vary by location and
job description. www.sam.gov lists prevailing wages for most locations and job descriptions and Notice 2022-61 states that taxpayers can rely on wages listed there.
The PW requirements apply to facilities for which construction begins on/after 1/30/2023. If construction began prior to this date, the project may be “grandfathered” in, and able to claim higher benefit rates without needing to meet PW requirements.
Is there a Cap on the Electrical Vehicle Charging Credit?
There is a $100,000 cap on the Credit, but the Inflation Reduction Act shifted the cap from “per location” to per “single item.” This is a very taxpayer-friendly change. If one location has multiple charging ports or fuel dispensers, each one may be considered a “single item.”
For example, if a charger has two ports that can each charge a vehicle simultaneously, the single charger may be eligible for up to $100,000 Credit on each of its ports.
How Can I Claim the Alternative Fuel Refueling Property Credit?
As mentioned previously, only “integral parts” of the property and “functionally interdependent” components actually qualify as Qualified Refueling Property.
A cost segregation study is the best way to identify, quantify, and assign costs to these integral parts and functionally interdependent components. By performing a cost segregation study in conjunction with the 30C Credit, you’ll benefit from accelerated and bonus depreciation while feeling confident that your 30C Credit was fully leveraged and claimed properly.
It’s important to make sure that your cost segregation study provider has experience assessing clean energy technology. If so, claiming the EV Charging Station Credit is a seamless add-on to a cost segregation study.
Do I Qualify for the Alternative Fuel Refueling Property Credit/EV Charging Station Credit?
If you’re considering installing electric vehicle charging stations, you may be eligible to claim the Credit. Let’s talk about your situation — we’re here to help.
Additional Information
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EV Charging Station Credit: Federal Incentives for Sustainable Infrastructure
The EV Charging Station Credit, formally known as the Alternative Fuel Vehicle Refueling Property Credit, offers significant tax relief to businesses investing in electric vehicle (EV) charging infrastructure. This federal tax credit for EV charger installations is designed to support the transition to cleaner transportation while encouraging private investment in sustainable solutions. Commercial property owners, developers, and fleet operators can all benefit from this forward-looking incentive.
LEARN MORE
EV Charging Station Credit: Federal Incentives for Sustainable Infrastructure
The EV Charging Station Credit, formally known as the Alternative Fuel Vehicle Refueling Property Credit, offers significant tax relief to businesses investing in electric vehicle (EV) charging infrastructure. This federal tax credit for EV charger installations is designed to support the transition to cleaner transportation while encouraging private investment in sustainable solutions. Commercial property owners, developers, and fleet operators can all benefit from this forward-looking incentive.
Eligibility for the Alternative Fuel Vehicle Refueling Property Credit
To qualify for the Alternative Fuel Vehicle Refueling Property Credit, businesses must install eligible EV charging equipment in locations that meet program requirements. Qualifying property may include:
- Chargers installed at commercial, retail, multifamily, or industrial sites
- Installations placed in service in designated census tracts (e.g., low-income or non-urban areas)
- Property used for business purposes (fleet charging, workplace charging, public access)
Both private entities and tax-exempt organizations (under certain provisions) can be eligible. Ownership structures and use cases must align with IRS-defined criteria.
Benefits of the EV Charging Station Business Tax Credit
The business tax credit for electric vehicle charging station installations can offset up to 30% of eligible project costs, capped at $100,000 per charging station. Financial benefits include:
- Direct offset of capital investment
- Improved site value and tenant appeal for commercial real estate owners
- Increased foot traffic and ESG alignment for retail and hospitality operators
This EV charger installation tax credit reduces upfront costs and supports long-term sustainability goals across industries.
How to Claim the Federal Tax Credit for EV Charger Installation
Claiming the federal tax credit for EV charger installation is an easy add-on to a cost segregation study. The cost segregation study will quantify and cost all assets, and then relevant property can easily be carved away for the Credit.
Documentation should clearly tie the property to IRS-defined qualifying use and demonstrate alignment with location-based eligibility.
Timing and Strategy for EV Charging Station Tax Credits
Proper timing and planning are essential to fully leverage the EV Charging Station Credit. Best practices include:
- An eye on the calendar, as the OB3 has instituted a sunset date
- Evaluating location eligibility early in site selection
- Coordinating with utility rebate programs and local or state incentives for additional savings
Stacking the EV charger installation tax credit with other incentives can significantly reduce project payback timelines.
Why Work with Specialists for EV Charging Station Tax Credits
Given the technical and regulatory requirements of the Alternative Fuel Vehicle Refueling Property Credit, partnering with professionals like Capstan Tax Strategies is critical. Our team provides:
- Expert qualification analysis and eligibility confirmation
- Complete credit calculation and filing support
- Precise documentation and compliance safeguards
Capstan helps clients confidently claim the business tax credit for electric vehicle charging station installations — maximizing savings while supporting the move toward cleaner transportation infrastructure.