The IRS and Treasury Department recently issued Notice 2024-20 to provide guidance on eligible census tracts for the qualified alternative fuel vehicle refueling property credit and to announce the intent to propose regulations for the credit.
The Inflation Reduction Act amended the credit for qualified alternative fuel vehicle refueling property. The changes apply to qualified alternative fuel vehicle refueling property placed in service after Dec. 31, 2022, and before Jan. 1, 2033.
The credit amount for property not subject to depreciation is 30% of the cost of the qualified property placed in service during the tax year.
The credit amount for depreciable property is 6% of the cost of the qualified property placed in service during the tax year but can increase to 30% of the cost of the qualified property if meeting the prevailing wage and apprenticeship requirements.
The credit has a $100,000 limit for depreciable property and $1,000 for non-depreciable property.
The primary purpose of the notice is to provide taxpayers with a list of eligible census tracts in advance of the 2023 filing season and to explain how taxpayers can identify the 11-digit census tract identifier for the location where the property is placed in service. Learn more.