March 2, 2023 - Fully electric vehicles (EVs) and hydrogen fuel cell vehicles will be key players in the nationwide and industrywide effort to cut emissions. (Reference Public Law 117-58 and 23 U.S. Code 151). Eligible projects may include the deployment of fueling infrastructure, including associated hardware and software, for alternative fuels. Financial assistance is available to local, state, and federal government entities; public transportation providers; private and non-profit organizations; and higher education institutions for research, demonstration, and deployment projects involving low or zero emission public transportation vehicles. Infrastructure deployments funded by the Community Program must be located on public roads or publicly accessible locations, including public parking facilities, public buildings, public schools, or public parks. For more information, including additional eligibility requirements, see the IRS Plug-In Electric Drive Vehicle Credit website. Canada has a long tradition in hydrogen (fuel cell) technology and is a leader in this field. The Inflation Reduction Act of 2022 (Public Law 117-169) amended the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now known as the Clean Vehicle Credit, and added a new requirement for final assembly in North America that took effect on August 17, 2022. Executive Order 13834, issued in May 2018, requires the Secretary of Energy (Secretary), in coordination with the Secretary of Defense, the Administrator of General Services, and the heads of other agencies as appropriate, to review the existing federal vehicle fleet requirements. The U.S. Department of Transportation Federal Highway Administration (FHWA) designates a national network of plug-in electric vehicle (EV) charging and hydrogen, propane, and natural gas fueling infrastructure along national highway system corridors. These incentives will increase the demand for clean hydrogen throughout the transportation sector. Vehicles must be certified by the U.S. Environmental Protection Agency (EPA) and appropriately labeled for use in HOV lanes. The Inflation Reduction Act of 2022 (Public Law 117-169) amended the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now known as the Clean Vehicle Credit, and added a new requirement for final assembly in North America that took effect on August 17, 2022. (Reference Public Law 117-58). In Texas, an energy company is building a power plant that can run on hydrogen, a fuel that is gaining steam because of new tax credits and upcoming federal regulations. U.S. Environmental Protection Agency For class 4 and above (over 14,000 lb) vehicles for commercial use, increases the credit to $40,000. AFV fueling or charging infrastructure can be exclusively for the school fleet or students, or open to the public. Financial Incentives for Hydrogen and Fuel Cell Projects | Department of Energy Skip to main content Enter the terms you wish to search for. and take advantage of a federal tax credit of up to $8000. For more information, see the EPAct website. The tax credit raises the value of some projects by more than 50% . Industry supporters and energy analysts say the brand-new credit will spur innovation and expand the number of production facilities. Biodiesel, ethanol, and renewable diesel are not considered alternative fuels by the IRS. State projects will be treated as Federal-aid Highway Program projects. States that choose to adopt these requirements will be responsible for enforcement and vehicle labeling. U.S. Department of Energy A principal residence is the home where you live most of the time. The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have begun the process of implementing the IRA tax credits. The four-tier incentive breakdown is detailed in the following table: maintains the existing $7,500 for the purchase of fuel cell electric vehicles by creating a qualified new clean vehicle credit built on the 30D credit for plug-in battery electric vehicles: Adds a retail price cap of $55,000 for new cars and $80,000 for pickups, vans, and sport utility vehicles, Credit is reduced or eliminated if a certain percentage of the critical minerals utilized in battery components are not extracted or processed in the United States or a Free Trade Agreement country or recycled in North America; the percentage required increases from 40% in 2024 to 80% in 2026, Credit is reduced or eliminated if electric vehicle is not assembled in North America or if the majority of battery components are sourced outside of North America; the percentage increases from 50% in 2024 to 100% in 2028, Implements an income eligibility limit of $150,000 or $300,000 for jointfilers. For more information on the Private and Local Government Fleet Rule compliance, visit the EPAct Private and Local Government Fleet Determination website. NAS will establish an advisory committee to recommend a national research agenda on improvements in the efficiency and resiliency of freight movement, including adapting to future trends such as zero-emissions transportation. But those . Qualifying EVs purchased before August 17, 2022, are eligible for a tax credit that is available for the purchase of a new qualified EV that draws propulsion from a battery that has at least five kilowatt-hours (kWh) of capacity, uses an external source of energy to recharge the battery, has a gross vehicle weight rating of up to 14,000 pounds, and meets specified emission standards. The North American final assembly requirement continues to apply. For further details, please see the IRS Inflation Reduction Act of 2022 website. Rebate, grant, or other incentive programs that fund the purchase and installation of energy efficiency, renewable energy, and zero-emission transportation and associated infrastructure. Projects supported with CMAQ funds must demonstrate emissions reductions, be located in or benefit a U.S. Environmental Protection Agency-designated nonattainment or maintenance area, and be a transportation project. Eligible applicants for RAISE grants are state, local, tribal, and U.S. territories governments, including transit agencies, port authorities, metropolitan planning organizations, and other political subdivisions of state or local governments. U.S. Internal Revenue Service The program will give priority to applicants located in nonattainment areas, as defined by the Clean Air Act, and projects that achieve the greatest air quality benefits, as measured by the amount of emissions reduced per dollar of funds spent under the program. Manufacturer sales caps on vehicles apply. Eligible activities include transit improvements, travel demand management strategies, congestion relief efforts (such as high occupancy vehicle lanes), diesel retrofit projects, alternative fuel vehicles and infrastructure, and medium- or heavy-duty zero emission vehicles and related charging equipment. Phone: (703) 605-5630 The minimum credit amount is $2,500, and the credit may be up to $7,500 based on each vehicles traction battery capacity. The tax credit amount is equal to the lesser of the following amounts: Maximum tax credits may not exceed $7,500 for vehicles under 14,000 lbs. The Drive America Forward Act also extends the hydrogen fuel cell credit for ten years, through 2028. "Fuel cell technology is scalable, and we believe it will take an increasingly visible and important role in our collective fight to reduce and eliminate carbon as we move towards a hydrogen society." Tax exempt entities can receive an elective payment in lieu of the tax credit. These additions include an increase to the 30% credit cap for the Alternative Fuel Refueling Property Credit from $30,000 to $100,000 and credits for fuel cell vehicles, including commercial vehicles. For more information, including qualifying vehicles and sales by manufacturer, see the Internal Revenue Service (IRS) Qualified Plug-in Electric Drive Motor Vehicle Credit website. Credits cannot be allocated to projects located in census tracts where projects have been previously allocated. Beginning January 1, 2023, fueling equipment for natural gas, propane, hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel, is eligible for a tax credit of 30% of the cost or 6% in the case of property subject to depreciation, not to exceed $100,000. Applicants with projects that include zero-emission vehicles (ZEVs) are required to submit a ZEV fleet transition plan. The program is not intended for research and development projects. In April 2004, the city of San Francisco acquired two Honda FCX cars powered by hydrogen fuel cells. Subscribeto ENERGY STARs Newsletter for updates on tax credits for energy efficiency and other ways to save energy and money at home. For more information, see the SEP website. The credit provides a varying, four-tier incentive depending on the carbon intensity of the hydrogen production pathway. Point of Contact Vans, sport utility vehicles, and pickup trucks must not have an MSRP above $80,000, and all other vehicles may not have an MSRP above $55,000. The U.S. government will hand you an $8,000 federal tax credit, and the state of California (the only state you can buy the Mirai in) will shovel another $4,500 your way next tax season.. This does not apply to married individuals filing a joint return. Eligible vehicles must be designated for public transportation use and significantly reduce energy consumption or harmful emissions compared to a comparable standard or low emission vehicle. Federal Laws and Incentives View federal laws and incentives for hydrogen. For more information, see the Grants for Energy Improvements at Public School Facilities website. The bill maintains the $7,500 tax credit for the first 200,000 units sold. Updated guidance, effective April 18, 2023, helped clarify the rules for cars entering service in 2023. In the transportation sector, light . Qualified fueling equipment must be installed in locations that meet the following census tract requirements: A population census tract where the poverty rate is at least 20%; or. Permitting and inspection fees are . To designate these Alternative Fuel Corridors (AFC), FHWA solicits nominations from state and local officials and works with other federal officials and industry stakeholders. Note that for some manufacturers, the assembly location may vary because some models are produced in multiple locations. http://www.irs.gov/. The IRA creates a tax credit of up to $40,000 per vehicle for vehicles over 14,000 pounds (and up to $7,500 per vehicle for vehicles under 14,000 pounds) for the purchase of qualified commercial clean vehicles and provides tax credits for the production and sale of battery cells and modules of up to $45 per kilowatt-hour (kWh). (Reference 42 U.S. Code 13212 (c)), Point of Contact To determine what's available in a given state, visit the Laws and Incentives section of the Alternative Fuels Data Center or the Database of State Incentives for Renewables and Efficiency. The U.S. Department of Transportation (DOT) Federal Highway Administration (FHWA) Charging and Fueling Infrastructure Discretionary Grant Program (CFI Program) offers funding to deploy publicly accessible electric vehicle charging and alternative fueling infrastructure in urban and rural communities and along Alternative Fuel Corridors (AFC). Phone: (202) 317-6855 (Reference Public Law 117-58). and $40,000 for vehicles above 14,000 lbs. (Reference Public Law 117-169 and 26 U.S. Code 48C). Summary Phone: (202) 326-2222 The U.S. Department of Transportation (DOT) Infrastructure for Rebuilding America (INFRA) grant program provides federal financial assistance to eligible transportation infrastructure projects that address climate change and environmental justice impacts, among other key objectives. FHWA must establish an AFC grant program to award grants to eligible entities, by November 15, 2022. Alternative Fuel Infrastructure Tax Credit. Alternative fuel mixture credit. For more information, see the Bipartisan Infrastructure Law CMAQ fact sheet and CMAQ Improvement Program website. The Green Book proposes a new six-year production tax credit (PTC) for the production of low-carbon hydrogen in qualified facilities for which construction begins before 2026, where the end use of the hydrogen is for energy, industrial, chemical, or transportation purposes.

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