Public Law 116-94 retroactively extended the Alternative Fuel Vehicle Refueling Credit to stations placed in service between January 1, 2018 through December 31, 2020. It includes a tax credit for purchasers of natural gas or propane refueling stations, up to 30 percent or $30,000 of the cost of the new station.
Definition
Qualified alternative fuel vehicle property is any property (other than a building or its structural components) used to store or dispense a clean-burning fuel into the fuel tank of a motor vehicle propelled by the fuel, but only if the storage or dispensing is at the point where the fuel is delivered into the tank.
The credit may be claimed for each separate qualifying property.
Amount of the credit
For personal use property, the credit is generally the smaller of 30% of the property’s cost or $1,000. For business use property, the credit is generally the smaller of 30% of the property’s cost or $30,000. Each property’s cost must first be reduced by any section 179 deduction before figuring the credit.
Tax-exempt entities
Sellers of new refueling property to a tax-exempt organization or governmental unit can claim the credit, as long as they clearly disclose in writing to the purchaser the amount of the tentative credit allowable.
For more information on the credit, see the instructions for Form 8911 at http://www.irs.gov.