Notice 2024-20: Guidance on qualified alternative fuel vehicle refueling property credit under section 30C
Taxpayers may rely on the notice until proposed regulations are published.
The IRS today released Notice 2024-20 [PDF 113 KB] providing a list of census tracts eligible for the alternative fuel vehicle refueling property credit under section 30C, as amended by H.R. 5376 (commonly called the “Inflation Reduction Act” (IRA)) in Appendix A [PDF 571 KB] and Appendix B [PDF 1.5 MB], and explaining how to identify the 11-digit census tract identifier for the location where the property is placed in service.
As described in a related IRS release—IR-2024-16 (January 19, 2024)—the IRS intends to propose regulations including this information in the future, but taxpayers may rely on the notice until proposed regulations are published.
The notice also provides background and definitions, describes relevant census concepts, provides definitions for low-income communities and non-urban census tracts, and explains which delineation of census tract boundaries is applicable for each type of census tract determination. Further, the notice describes how updating of low-income community census tract determinations are considered for credit eligibility.
The IRS also released frequently asked questions (FAQs) related to the section 30C credit.
Background
The IRA amended the section 30C credit for qualified alternative fuel vehicle refueling property placed in service after December 31, 2022, and before January 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 may be increased to 30% of the cost of the qualified property if the prevailing wage and apprenticeship requirements are met. The credit is limited to $100,000 for depreciable property and $1,000 for non-depreciable property.
Property must be placed in service in an eligible census tract to qualify for the credit. An eligible census tract is any population census tract that is a low-income community or any population census tract that is not an urban area.