Sens. Tom Carper, D-Delaware, and Lamar Alexander, R-Tennessee, recently introduced the Securing America’s Clean Fuels Infrastructure Act, legislation that would improve and expand the existing Alternative Fuel Vehicle Refueling Property Investment Tax Credit, known as “30C.”
Currently, 30C provides a 30% ITC for alternative fuel vehicle refueling property, which includes electric charging stations and hydrogen refueling stations. However, 30C expires Dec. 31, and the credit’s cap is currently too low to adequately incentivize investment in today’s modern refueling infrastructure technologies. To encourage more private investment in clean refueling infrastructure for vehicles that run on fuels other than gasoline, the Securing America’s Clean Fuels Infrastructure Act would increase the cap on business investments, ensure that the ITC can be applied to each item of refueling property, rather than just one location, and extend the tax credit for eight more years.
“The Securing America’s Clean Fuels Infrastructure Act is about giving American’s a real choice when it comes to transportation, and it’s about economic opportunity at a time when American’s need it most,” said Carper. “On America’s roads and highways today, gas stations are rarely farther than the next corner or next exit. That’s not necessarily true for cleaner fuels. In order to meet our clean air and climate goals and lead the world in clean vehicle manufacturing, Americans must have greater access to hydrogen refueling and electric charging stations. Our legislation improves upon current tax credits to better incentivize companies to make investments today — rather than later — in the construction of clean fuel vehicle infrastructure nationwide. This is a commonsense way Congress can spur economic investments in our nation’s aging infrastructure, help reduce transportation pollution, and support the millions of Americans that are considering buying a clean car today or in the future. I’m proud to introduce this legislation with my colleague and fellow ‘recovering governor,’ Lamar Alexander.”
Today, the 30C ITC, as it is structured and interpreted by the Internal Revenue Service, only allows the credit to be used on a per-location basis rather than on a per-device basis, which means that only one charging station per public parking garage could qualify for the credit. That current structure and interpretation of the credit makes it difficult to finance multiple charging or refueling stations at one location, or to finance expansions of one location in the future. The Securing America’s Clean Fuels Infrastructure Act makes clear that the 30C ITC can be applied to each item of refueling property — i.e., each charger — rather than per location.
Additionally, the current $30,000 cap on business investments does not provide adequate support for the installation of today’s fast-charging electric vehicle stations or hydrogen refueling stations. The Securing America’s Clean Fuels Infrastructure Act increases the 30C ITC cap for business investments from $30,000 to $200,000 for each item of refueling property. Finally, this legislation will also extend the credit for eight more years, to Dec. 31, 2028, ensuring that the business community has the certainty needed to make long-term investments in clean fuels infrastructure.
This bipartisan legislation won support from the business and environmental communities, including from Electric Drive Transportation Association, Fuel Cell and Hydrogen Energy Association, the National Wildlife Federation, ABB, ChargePoint, Duke, Eaton, Electrify America, Enel X, EVGO, Greenlots, Honda, Salt River Project, Tesla, Toyota and Volkswagen of America.