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Treasury Provides Clarity on Census Tracts Eligible for EV Charging Equipment Tax Credit

Date: 01/19/2024
Type: Implementation of IRA

On January 19, 2024, Treasury released guidance on eligibility for claiming the IRC section 30C Alternative Fuel Vehicle Refueling Property Credit, which provides a tax credit of up to 30% of the cost of installing vehicle charging infrastructure placed in service either in low-income census tracts or non-urban areas. The 30C tax credit, expanded by IRA section 13404, may be claimed by taxpayers for the installation of home and business electric vehicle charging equipment and other refueling equipment, limited to $1,000 per item for personal property and $100,000 for business property.

The guidance announces Treasury’s intent to define eligible tracts and provides lists of eligible census tracts, Appendix A and Appendix B. Non-urban census tracts are defined as those within which at least 10% of the census blocks are outside urban areas. Low-income community census tracts follow the definition provided for purposes of the new markets tax credit.

Opportunities for Participation and Additional Resources:

https://www.irs.gov/pub/irs-drop/n-24-20.pdf

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