Subscribe to receive news and updates by email. For more information, see the Grants for Energy Improvements at Public School Facilities website. Fueling equipment for natural gas, propane, liquefied hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed through December 31, 2022, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. https://www.epa.gov/dera. For more information about claiming the credit, see IRS Form 4136, which is available on the IRS Forms and Publications website. Phone: (202) 586-8336 Qualified Commercial Clean Vehicles Credit. Align the implementation of AFVs and associated fueling infrastructure. Permitting and inspection fees are . (Reference Public Law 117-58, Public Law 112-141, 23 U.S. Code 149, and 23 U.S. Code 151). (Reference 81 Federal Register 2054 and 16 CFR 306 and 309), Point of Contact . Funding can also be used to support the development of state carbon reduction strategies, in consultation with designated metropolitan planning organizations, by November 15, 2023. Clean Agriculture is a voluntary program that promotes the reduction of diesel exhaust emissions from agricultural equipment and vehicles by encouraging proper operations and maintenance by farmers, ranchers, and agribusinesses, use of emissions-reducing technologies, and use of cleaner fuels. Forrestal Building1000 Independence Avenue, SWWashington, DC 20585, Hydrogen and Fuel Cell Technologies Office, About the Hydrogen & Fuel Cell Technologies Office, Current Approaches to Safety, Codes & Standards, It also expands tax credit to include projects at manufacturing facilities that want to reduce their greenhouse gas emissions by at least20%, Tax credit is funded at $10 billion for eligible projects. The budget expects a deficit of C$43 billion for 2022-23, and forecasts deficits of C$40.1 billion for 2023-24 and C$35 billion for 2024-25. The U.S. Department of Energy (DOE) provides grants for transportation decarbonization research projects. It can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home. 95-618), which created a temporary 10% tax credit for business energy property and equipment using energy resources other than oil or natural gas. These incentives will increase the demand for clean hydrogen throughout the transportation sector. Federal fleets are also required to use alternative fuels in dual-fuel vehicles unless the U.S. Department of Energy (DOE) approves waivers for agency vehicles; grounds for a waiver include lack of alternative fuel availability and unreasonable cost (per EPAct 2005, section 701). extends the 30% fuel cell investment tax credit through 2024 before a transition to the technology-neutral Clean Energy Investment Credit, which begins in 2025. The amount of the credit depends on whether the vehicle meets certain critical minerals and battery component requirements. (Reference Public Law 117-58). U.S. Department of Energy (Reference Public Law 109-58 and 42 U.S. Code 16191). Excise Tax Branch U.S. Environmental Protection Agency 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. Zero emission technology includes all-electric vehicles and fuel cell electric vehicles (FCEVs). Point of Contact (Reference Public Law 117-58 and 23 U.S. Code 1). https://epact.energy.gov/contact-us, The U.S. General Services Administration (GSA) must allocate the incremental cost of purchasing alternative fuel vehicles (AFVs) across the entire fleet of vehicles distributed by GSA. Federal Energy Management Program The public will have opportunities to provide input as the implementation process unfolds. Fleets that use fuel blends containing at least 20% biodiesel (B20) may earn credits toward their annual requirements. Extends tax credit to property placed into service before 2033, Increases the tax credit to 30% of the cost of alternative fuel refueling property up to $100,000 (previously $30,000), Eliminates the restriction to allow for the credit to be used only once so that taxpayers who install qualified equipment at multiple sites are allowed to use the credit toward each site location. The minimum credit amount is $2,500, and the credit may be up to $7,500 based on each vehicles traction battery capacity. For more information, see the CRP Implementation Guidance and Fact Sheet. The grant will provide funding for designated Corridor-Pending AFCs to install infrastructure to convert to Corridor-Ready AFCs, and for Corridor-Ready AFCs to install alternative fuel infrastructure to provide station redundancy and meet higher demand. Hydrogen Shot funds hydrogen demonstration projects that can help lower the cost of hydrogen, reduce carbon emissions and local air pollution, create good-paying jobs, and provide benefits to disadvantaged communities. Section 13404. 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. The credit measures emissions up to the point of production using the Argonne National Laboratory Greenhouse gases, Regulated Emissions, and Energy use in Technologies Model: The Clean Vehicle Credit 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: Elective Payment for Energy Property adds an election for direct pay provisions to a range of tax credits including the clean hydrogen production credit, the energy investment tax credit, the carbon capture and sequestration credit, alternative fuel vehicle refueling property credit, advanced energy project credit, and others: The Energy Credit extends the 30% fuel cell investment tax credit through 2024 before a transition to the technology-neutral Clean Energy Investment Credit, which begins in 2025. For more information, including eligibility requirements and funding availability, see the DOT FHWA CFI Program website. The Zero Emissions Airport Vehicle and Infrastructure Pilot Program provides funding to airports for up to 50% of the cost to acquire ZEVs and install or modify supporting infrastructure for acquired vehicles. lgprogram@hq.doe.gov A fleet may also earn credits that may be used toward compliance or banked once the fleet achieves compliance for investments in alternative fuel infrastructure, mobile non-road equipment, and emerging technologies associated with certain electric drive vehicle technologies. The U.S. Department of Transportation (DOT) will establish the Port Infrastructure Development Program (PIDP) to fund projects that improve port resiliency to address sea-level rise, flooding, extreme weather events, earthquakes, and tsunami inundation, as well as projects that reduce or eliminate port-related criteria pollutant or greenhouse gas emissions. 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. Eligible projects include, but are not limited to, supporting connected, electric, and automated vehicles, a modal shift in freight or passenger movement to reduce greenhouse gas emissions, and the installation of zero-emission vehicle infrastructure. The ITC (investment tax credit) is a federal tax credit, passed into law this past month, that can be claimed by any company that invests in fuel cell and hydrogen installations meeting certain criteria This law, in effect until 2022, allows many of our customers and financing partners to receive an immediate 30% tax credit on their purchases . Eligible entities must be registered with the Internal Revenue Service (IRS). Can receive a bonus for domestic-sourcing of materials and for siting projects in "energy communities". Federal Laws and Incentives. EERE distributes the funding through an annual competitive solicitation to state energy offices. Applications for the first funding round are due May 16, 2022. It has three hydrogen tanks with 330 cells in them for pristine engine operation. Projects must begin construction by 2033. NOTE: This incentive was originally set to expire on December 31, 2021, but has been extended through December 31, 2024, by Public Law 117-169. For more information, see the Bipartisan Infrastructure Law CMAQ fact sheet and CMAQ Improvement Program website. Transportation energy conservation programs; Energy efficiency, renewable energy, and zero-emission transportation and associated infrastructure financing programs; and. Common nontaxable uses in a motor vehicle are: on a farm for farming purposes; in certain intercity and local buses; in a school bus; for exclusive use by a non-profit educational organization; and for exclusive use by a state, political subdivision of a state, or the District of Columbia. Cost-effective deployment of EV charging for those without access to home charging; Innovative solutions to improve mobility options for underserved communities; Community engagement to accelerate clean transportation options in underserved communities; Research and development to reduce EV battery size and cost, increase EV battery range, and decrease EV battery emissions; Electrification of off-road and non-road vehicles, including agricultural, construction, rail, marine, and aviation; Materials technologies to improve EV efficiency and affordability; Use of the alternative fuels in commercial off-road vehicle technologies, including natural gas, hydrogen, and renewable propane; Planning and development of medium- and heavy-duty EV charging and hydrogen fueling corridors and advanced engine and fuel technologies to improve fuel economy and reduce greenhouse gas emissions. This model sports a polymer electrolyte fuel cell engine with a max power output of 128 kilowatts. DERA Helpline The home served by the system MUST be the taxpayer's principal residence. The Energy Storage Tax Incentive and Deployment Act of 2019, introduced by Representative Mike Doyle as H.R. (Reference Public Law 117-58). The U.S. Department of Energy (DOE) administers the Regional Clean Hydrogen Hubs (H2Hubs) program. For more information, see the Reducing Diesel Emissions from Construction and Agriculture website. The value of the credit to consumers from this automaker then decreases to 50% before being phased out entirely after six months. Eligible projects that meet prevailing wage and apprenticeship requirements may be eligible to receive the full 30% tax credit, regardless of depreciation status. Vehicles that meet the critical mineral requirements are eligible for a $3,750 tax credit, and vehicles that meet the battery component requirements are eligible for a $3,750 tax credit. Find information about several other incentives related to hydrogen and fuel cells . In the transportation sector, light . http://www.irs.gov/. keller.jennifer@epa.gov 1818 (August 16, 2022), commonly known as the Inflation Reduction Act, retroactively reinstated and extended the following fuel tax credits through December 31, 2024: Alternative fuel credit. U.S. Department of Energy Eliminates the previous manufacturer quota, which phased out the tax credit for manufacturers as they neared 200,000 clean vehicles sold. The fuel cell must have a nameplate capacity of at least 0.5 kW of electricity using an electrochemical process and an electricity-only generation efficiency greater than 30%. (Reference 49 U.S. Code 47139). Phone: (877) 623-2322 For more information, see the Zero Emissions Airport Vehicle and Infrastructure Pilot Program website. 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). The VALE Program provides funding through the Airport Improvement Program and the Passenger Facility Charges program for the purchase of low emission vehicles, development of fueling and recharging stations, implementing gate electrification, and other airport air quality improvements. U.S. Department of Energy Biodiesel, ethanol, and renewable diesel are not considered alternative fuels by the IRS. Federal Trade Commission Manufacturer sales caps on vehicles apply. SEP is authorized through fiscal year 2026. The amount of tax credit received is determined by the exact amount of emissions produced, where hydrogen production pathways with lower greenhouse gas emissions qualify for higher tax credits. The CMAQ Program provides funding to state departments of transportation (DOTs), local governments, and transit agencies for projects and programs that help meet the requirements of the Clean Air Act by reducing mobile source emissions and regional congestion on transportation networks. Point of Contact http://www.fta.dot.gov, The U.S. Department of Transportation (DOT) must establish a pilot grant program for the purchase of electric or low-emitting ferries and the electrification of or other reduction of emissions from existing ferries. Phone: (703) 571-3343 That compares to 30kWh for fuel-cell vehicles and 77kWh for battery EVs. home and work. EVs are defined as vehicles that are recharged from an external source of electricity and have a battery capacity of at least 4 kilowatt-hours. Retailers offering alternative fuel for sale must ensure dispensers are labeled with information to help consumers make informed decisions about fueling a vehicle, including the name of the fuel and the minimum percentage of the main component of the fuel. After Congress provided $9.5 billion in funding through the 2021 public works legislation and tax credits through a 2022 climate law, politicians in Washington and U.S . 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. 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. Tax exempt entities such as state and local governments that dispense qualified fuel from an on-site fueling station for use in vehicles qualify for the incentive. For more information, including additional eligibility requirements, see the IRS Plug-In Electric Drive Vehicle Credit website. DOE may issue loan guarantees for at least 50% of the amount of the loan for an eligible project. Phone: (703) 605-5630 Fueling equipment for natural gas, propane, liquefied hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed through December 31, 2022, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. The U.S. Environmental Protection Agency's (EPA) Ports Initiative is an incentive-based program designed to reduce emissions by encouraging port authorities and terminal operators to retrofit and replace older diesel engines with new technologies and use cleaner fuels. A principal residence is the home where you live most of the time. Beginning January 1, 2023, the Clean Vehicle Credit (CVC) provisions removed the manufacturer sales caps for vehicles sold after January 1, 2023, expanded the scope of eligible vehicles to include both EVs and FCEVs, and required that the battery powering the vehicle has a capacity of at least seven kilowatt-hours (kWh). For more information, see the EPAct website. This article is part of a series exploring the . DOE will evaluate lifecycle emissions for each project application and give preference to applications that reduce greenhouse gas emissions across the full project lifecycle. Jennifer Keller Hydrogen Shot focuses on various projects that bridge technical gaps in hydrogen production, storage, and distribution and utilization technologies, including fuel cells. Enter the total, if any, credits from Schedule 3 (Form 1040), lines 1 through 4, 6d, and 6I; and Form 5695, line 30. 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). Propane fueling infrastructure is limited to use by medium- and heavy-duty vehicles. The credit that may be claimed by each individual is proportional to the costs he/she paid. Additional terms apply. For class 4 and above (over 14,000 lb) vehicles for commercial use, increases the credit to $40,000. http://www.defense.gov/. U.S. Environmental Protection Agency Funding will be made available each fiscal year until November 15, 2026, and will remain available until expended for this Program. Yes, hydrogen fuel cell cars do qualify for tax credits and incentives in some states, but the laws and incentives. Critical Minerals: To be eligible for the $3,750 critical minerals portion of the tax credit, the percentage of the value of the batterys critical minerals that are extracted or processed in the United States or a U.S. free-trade agreement partner or recycled in North America, must meet or exceed the following thresholds: Battery Components: To be eligible for the $3,750 battery components portion of the tax credit, the percentage of the value of the batterys components that are manufactured or assembled in North America must meet or exceed the following thresholds: Further guidance on additional 30D requirements is forthcoming. This shift could result in a roughly 20 percent reduction of GHG truck . Eligible vehicles must be of a model year at least two years prior to the year of purchase and may not have a purchase price above $25,000. Specifically, the report recommends that federal agencies identify and implement strategies to: (Reference 42 U.S. Code 13212 and Executive Order 13834 and Executive Order 14008), Point of Contact Vehicles meeting both the critical mineral and the battery component requirements are eligible for a total tax credit of $7,500. Fleets may also opt into Alternative Compliance, which allows fleets the option to choose a petroleum reduction path in lieu of acquiring AFVs under Standard Compliance. (Reference Public Law 117-58 and 42 U.S. Code 17154). A long-term fleet management plan that includes a strategy for how Low No Program funds will be used for resources and acquisitions; A discussion on the availability of current and future resources for ZEV transition and implementation; An assessment of policy and legislation impacting relevant technologies; An evaluation of existing and future facilities; A description the applicants relationship with the utility or alternative fuel provider; and. http://www.ftc.gov/. U.S. Internal Revenue Service Vehicles must be certified by the U.S. Environmental Protection Agency (EPA) and appropriately labeled for use in HOV lanes. The U.S. Department of Defense (DOD) must exhibit a preference for the lease or procurement of motor vehicles with electric or hybrid electric propulsion systems, including plug-in hybrid systems, if the vehicles are commercially available at a cost reasonably comparable to motor vehicles with internal combustion engines. State projects will be treated as Federal-aid Highway Program projects. Eligible applicants for INFRA grants are states, metropolitan planning organizations that serve urbanized areas with a population of more than 200,000 individuals, local governments, political subdivisions, port authorities, and tribal governments. Tax credits for solar and wind energy property were refundable (credits must have a battery capacity of at least 15 kWh. The Energy Storage Credit adds a new provision to the energy investment tax credit for energy storage, including hydrogen storage, available through 2025 before a transition to the Clean Energy Investment Credit. 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. (Reference 26 U.S. Code 6426). Labels may also list the percentage of other fuel components. 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. Interested fleets must obtain from DOE a waiver from Standard Compliance by submitting a plan that demonstrates a path by which they will achieve a certain level of petroleum reduction specific to their fleet composition. The IRA's clean energy incentives include many provisions for clean hydrogen and fuel cell technologies, either extending many existing federal tax credits, increasing existing federal tax credits, or creating new federal tax credits, including the following programs. Search National Labs Additionally, funding may be requested for workforce development training or training at the National Transit Institute. For more information, visit the Hydrogen Shot website. Funding is authorized through fiscal year 2026. U.S. Department of Defense If you cannot use part of the personal portion of the credit because of the tax liability limit, the unused credit is lost. For more information, including funding application deadlines, see the DOT INFRA Grants website. 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. For more information, see the Bipartisan Infrastructure Law Public Transportation Innovation fact sheet. This does not apply to married individuals filing a joint return. Starting Jan. 1, low- and middle-income Americans would be eligible for a $7,500 tax credit for buying a new clean-air vehicle a designation that includes hydrogen fuel-cell vehicles as. http://www.energy.gov. States are encouraged to complete EV AFCs, which are eligible for separate funding from the National Electric Vehicle Infrastructure (NEVI) Formula Program, and will be considered fully built out once they meet the conditions specified in the NEVI Formula Program Guidance. However, those make sense only for buyers who. Point of Contact Projects can also elect to claim up to a 30% investment tax credit under Section 48. and $40,000 for vehicles above 14,000 lbs. experts on saving energy at For loan guarantees of over 80%, the loan must be issued and funded by the Treasury Departments Federal Financing Bank. Additionally, a taxpayers eligibility for the tax credit may be limited by thresholds for modified adjusted gross income (modified AGI); only individuals having a modified AGI below the following thresholds for the current tax year or the prior tax year are eligible for the tax credit: To be eligible for the Clean Vehicle Credit, the battery powering the vehicle must have a capacity of at least seven kilowatt-hours (kWh). For more information, see the GSA's AFV website. To track progress toward meeting AFV acquisition and fuel use requirements, federal fleets must report on their percent alternative fuel increase compared to the fiscal year 2005 baseline, alternative fuel use as a percentage of total fuel consumption, AFV acquisitions as a percentage of vehicle acquisitions, and fleet-wide miles per gasoline gallon equivalent of petroleum fuels. (Reference Public Law 117-58 and 23 U.S. Code 151). Tax exempt entities can receive an elective payment in lieu of the tax credit. To be eligible, an airport must be for public use. Financial Incentives for Hydrogen and Fuel Cell Projects | Department of Energy Skip to main content Enter the terms you wish to search for. See Notice 2022-39 PDF for information on how to . National Clean Diesel Campaign 5 Thus, we expect the share of ZE trucks in operation to grow from less than 1 percent today to more than 75 percent in 2050 for all medium- and heavy-duty trucks. The XLE has a driving range that reaches up to 402 miles while the Limited reaches up to 357 miles before it needs a recharge.