(Reference Public Law 117-58 and 49 U.S. Code 702). For more information about claiming the credit, see IRS Form 8911, which is available on the IRS Forms and Publications website. An assessment on how ZEVs will impact the applicants workforce. The U.S. Department of Transportation must conduct an AFV study, focusing specifically on hydrogen, natural gas, or propane, that identifies: The report must be made publicly available and submitted to Congress by November 15, 2022. 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. For more information, visit the Hydrogen Shot website. 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). The Qualified Commercial Clean Vehicles Credit creates a new 30% credit for commercial fuel cell electric vehicles through 2032, which is capped at $40,000: The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have begun the process of implementing the IRA tax credits. 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. During the designation and redesignation process, in consultation with the U.S. Department of Energy, FHWA will issue a report identifying charging and fueling infrastructure, best practices and guidance for predictable infrastructure deployment, analyzing standardization needs for fuel providers and purchasers, and reestablishing the goal of achieving strategic deployment of fueling infrastructure in the designated corridors. Eligible applicants must include port authorities, state governments, local governments, tribal governments, air pollution control agencies, and private entities that own, operate, or use port. 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. DOE will provide technical assistance services to support up to 36 communities to develop their own community-driven clean energy transition approach. DOT shall establish the Program by November 15, 2022, and publish annual reports describing the ongoing research and findings. 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. The tax credit is not allowed if an incentive for the same alternative fuel is also determined under the rules for the ethanol or biodiesel tax credits. The mission of Clean Cities Coalition Network is to foster the economic, environmental, and energy security of the United States by working locally to advance affordable, domestic transportation fuels and technologies. 2017, 2018, 2019: 30% . Point of Contact Additional incentives may also be available through Clean Cities Financial Opportunities . For more information, see the Grants for Energy Improvements at Public School Facilities website. 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. The amount of the credit depends on whether the vehicle meets certain critical minerals and battery component requirements. Fuel cell manufacturer Plug Power has added employees and reduced losses in the past couple of years as business has grown, at least in part because of fuel cell energy tax credits. Phone: (202) 586-5000 The maximum credit is $500 per half kilowatt (kW) of power capacity. keller.jennifer@epa.gov 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. Additional terms and conditions apply. Clean hydrogen is defined as hydrogen produced with a carbon intensity equal to or less than 2 kilograms of carbon dioxide-equivalent produced at the site of production per kilogram of hydrogen produced. http://www.epa.gov/cleandiesel/, The goal of the VALE Program is to reduce ground level emissions at commercial service airports located in designated ozone and carbon monoxide air quality nonattainment and maintenance areas. EPA will prioritize funding for high-need local education agencies; low income, rural and tribal schools; and, applications that cost share through public-private partnerships, grants from other entities, or school bonds. U.S. Environmental Protection Agency http://www.ftc.gov/. See Notice 2022-39 PDF for information on how to . Electric vehicle charging or hydrogen fueling infrastructure. Second generation biofuel producer credit. Propane fueling infrastructure is limited to use by medium- and heavy-duty vehicles. Eligible applicants are school districts, state and local government programs, federally recognized Indian tribes, non-profit organizations, and eligible contractors. 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. However, those make sense only for buyers who. Fleets that use fuel blends containing at least 20% biodiesel (B20) may earn credits toward their annual requirements. For more information on the Private and Local Government Fleet Rule compliance, visit the EPAct Private and Local Government Fleet Determination website. must have a battery capacity of at least seven kilowatt-hours (kWh) and vehicles with a GVWR above 14,000 lbs. Labels may also list the percentage of other fuel components. Alternative Fuel Infrastructure Tax Credit. Align the implementation of AFVs and associated fueling infrastructure. 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. Individuals with a gross annual income below the following thresholds are eligible for the tax credit: Only one tax credit may be claimed per vehicle. The hydrogen production tax credit proposed in the Democrats' latest federal budget reconciliation bill favors hydrogen produced from zero-carbon energy, but is likely substantial enough to also support facilities that use natural gas as a feedstock. The U.S. Department of Transportation (DOT) is responsible for planning and implementing HOV programs, including the low-emission and energy-efficient vehicle criteria EPA established. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. In January 2004, DOE published a final rule announcing its decision not to implement an AFV acquisition mandate for private and local government fleets. For more information, visit the DOE Communities LEAP website. (Reference 26 U.S. Code 30C, 30D, and 38 and Public Law 117-169), Point of Contact (Reference 26 U.S. Code 4041). Can receive a bonus for domestic-sourcing of materials and for siting projects in "energy communities". 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. and take advantage of a federal tax credit of up to $8000. This article is part of a series exploring the . The Act eliminates an existing phase out that occurs when a manufacturer sells 200,000 vehicles. 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: Allows direct payments to be made in lieu of a reduction in tax liability ("direct pay") and/or an option to monetize the credits by transferring them to an entity with greater tax liability ("transferability"), Direct pay is limited to certain tax exempt and governmental entities for most of the eligible tax credits, This limitation does not apply to the first 5 years of the section 45V clean hydrogen credit, section 45Q carbon capture and sequestration credit, and section 45X advanced manufacturing credit. 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. 2096 and by Senator Martin Heinrich as S. 1142, would have extended the 30 percent energy investment tax credit to energy storage technologies, "equipment which receives, stores, and delivers energy.". 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. Updated guidance, effective April 18, 2023, helped clarify the rules for cars entering service in 2023. Funded projects may include: Funding is authorized through fiscal year 2026. The minimum credit amount is $2,500, and the credit may be up to $7,500 based on each vehicles traction battery capacity. Port electrification or electrification master planning; Development of port or terminal micro-grids; Worker training to support electrification technology; and. Awards must include a ferry service that serves the State with the largest number of Marine Highway System miles and a bi-state ferry service with an aging fleet. Subscribe to receive news and updates by email. The U.S. Department of Transportation (DOT) will establish a national cooperative freight transportation research program (Program), administered in collaboration with the National Academy of Sciences (NAS). 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).