Section 13404 of the IRA extends the tax credit for EV chargers and alternate refueling property established in section 30C of the IRC. The tax credit expired on December 31, 2021. The IRA extended the credit through 2032 for qualified property placed in service after December 31, 2021.
Section 13404 of the IRA also lowered the credit rate for certain property. The credit rate previously was set equal to 30% of the cost of any qualified alternative fuel vehicle refueling property. The IRA caps the credit rate at 6% for depreciable property, unless certain wage and apprenticeship requirements are met. If those requirements are met, depreciable property will be eligible for a credit of 30%. The Department of Treasury must issue guidance or regulations on the prevailing wage standard, as well as set record-keeping and reporting requirements.
Finally, the IRA also expanded the definition of qualifying property to include bidirectional charging equipment and charging for two-and three-wheeled vehicles. However, charging equipment will only be eligible for the credit, starting in 2023, if it is placed in service in a low-income or rural census tract.
Eligible Entities:
Environmental Justice Considerations:
Starting in 2023, charging equipment is only eligible for the credit when located in low-income or rural census tracts.
Current Status:
Section 70504 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) phases out the availability of the section 30C alternative fuel vehicle refueling property credit (IRA section 13404) by June 30, 2026.
Trump Administration Actions:
- Congress Passes Budget Bill, Rescinding Funds and Repealing IRA Programs and Tax Credits [07/03/2025]
- Senate Parliamentarian Advises Several Provisions in Republicans’ “One Big, Beautiful Bill” Are Not Permissible, Subject to Byrd Rule [06/19/2025]
- Senate Finance Committee Releases Budget Reconciliation Draft Text [06/16/2025]
- OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025]
- OMB Clarifies Scope of the Order to Halt IRA Spending [01/21/2025]
- Trump Issues Executive Order to Halt All IRA Funding Disbursements [01/20/2025]
Implementation Status at End of Biden Administration:
Biden Administration Actions:
- Treasury Releases Proposed Rule on Vehicle Recharging Equipment Tax Credit [09/18/2024]
- Treasury Finalizes Prevailing Wage and Apprenticeship Requirements for a Variety of Tax Incentives [06/18/2024]
- Treasury Provides Clarity on Census Tracts Eligible for EV Charging Equipment Tax Credit [01/19/2024]
- Treasury Issues Proposed Rule on Clean Energy Apprenticeship and Prevailing Wage Requirements [08/30/2023]
- IRS Launches Website on Alternative Fuel Vehicle Refueling Credit [06/22/2023]
- DOE Launches New Consumer Energy Savings Hub [04/24/2023]
- Treasury Issues Initial Guidance on Prevailing Wage and Apprenticeship Requirements [11/30/2022]
- Treasury Seeks Comments on Commercial Clean Vehicle and Alternative Fuel Refueling Property Credits [11/03/2022]
- Treasury Requests Comments on Prevailing Wage, Apprenticeship, Domestic Content, and Energy Community Requirements [10/05/2022]
Program Stakes:
Congress’s Joint Committee on Taxation estimates taxpayers will claim $400 million in Alternative Fuel Vehicle Refueling Property credits by 2028.