(Reference Public Law 117-58 and 49 U.S. Code 702). 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. (Reference Public Law 117-58, Public Law 112-141, 23 U.S. Code 149, and 23 U.S. Code 151). For further details, please see the IRS Inflation Reduction Act of 2022 website. For more information, see the Bipartisan Infrastructure Law CMAQ fact sheet and CMAQ Improvement Program website. Phone: (202) 317-6855 Extends the deadline for construction to January 1, 2033, and increases the credit amount. Additional critical mineral and battery component requirements also apply as of April 18, 2023, which alter how the tax credit is calculated and may alter the amount of the tax credit available. A principal residence is the home where you live most of the time. Projects can also elect to claim up to a 30% investment tax credit under Section 48. EPA's Ports Initiative offers funding to port authorities and public entities to help them overcome barriers that impede the adoption of cleaner diesel technologies and strategies. DOE may issue loan guarantees for at least 50% of the amount of the loan for an eligible project. Note that for some manufacturers, the assembly location may vary because some models are produced in multiple locations. 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. An $8,000 federal tax credit for buying a hydrogen electric car will end December 31, resulting in higher prices for consumers. For more information, visit the Hydrogen Shot website. The credit will begin to be phased out for each manufacturer in the second quarter following the calendar quarter in which a minimum of 200,000 qualified PEVs have been sold by that manufacturer for use in the United States. Port electrification or electrification master planning; Development of port or terminal micro-grids; Worker training to support electrification technology; and. In addition, the Canadian government recently announced a massive incentive program of CAD 80 billion in tax credits for clean technology over the next decade, including CAD 25 billion for investments in clean electricity. State projects will be treated as Federal-aid Highway Program projects. This exemption is not available to tax exempt entities that are not liable for excise taxes on transportation fuel. 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). The assembly location of a particular vehicle should be confirmed by referring to its Vehicle Identification Number (VIN) using the U.S. Department of Transportations VIN decoder or an information label affixed to the vehicle. 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. Permitting and inspection fees are not included in covered expenses. It can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home. http://www.defense.gov/. (Reference 81 Federal Register 2054 and 16 CFR 306 and 309), Point of Contact 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. 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. For more information, see the EPA Ports Initiative website. In November 2022, the United States committed that ZE truck sales nationwide would reach 100 percent in 2040. For more information, see the EPAct website. In March 2008, DOE issued its determination not to implement a fleet compliance mandate for private and local government fleets, concluding that such a mandate is not necessary to achieve the Replacement Fuel Goal. Qualified advanced energy projects are eligible for a 30% tax credit for project investments to reequip, expand, or establish certain manufacturing facilities. Financial Incentives for Hydrogen and Fuel Cell Projects | Department of Energy Skip to main content Enter the terms you wish to search for. 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. The credit that may be claimed by each individual is proportional to the costs he/she paid. 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. 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. creates a new 30% credit for commercial fuel cell electric vehicles through 2032, which is capped at $40,000: For class 13 (under 14,000 lb) vehicles for commercial use, creates a $7,500 tax credit tax for the purchase of electric vehicles or other qualified cleanvehicles. EPA may award up to 100% of the cost of the replacement bus, charging equipment, or fueling infrastructure. While the term "hydrocarbons" includes liquids that contain oxygen, hydrogen, and carbon and as such "liquid hydrocarbons derived from biomass" includes ethanol, biodiesel, and renewable diesel, the IRS specifically excluded these fuels from the definition. For more information, including current prize challenges, visit the American-Made Challenges website. At the request of a state, DOT must provide technical assistance in the development of the carbon reduction strategy. 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. 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. (Reference 49 U.S. Code 5312 and 5339, Public Law 114-94, Public Law 113-159, and Public Law 117-58). 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 than30%. 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, including funding application deadlines, see the DOT INFRA Grants website. For more information, see the FHWA Alternative Fuel Corridors website. 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. Eligible entities include states, metropolitan planning organizations, local governments, political subdivisions, and tribal governments. 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 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%. 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. U.S. Department of Energy Subscribeto ENERGY STARs Newsletter for updates on tax credits for energy efficiency and other ways to save energy and money at home. Credits would be capped to an income level of. The home served by the system MUST be the taxpayer's principal residence. For more information, see the DOT RAISE Grants website. 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. For more information, see the Notice of Funding Opportunity announcement and the PIDP website. 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. The U.S. Department of Transportations Federal Transit Administration administers the Public Transportation Innovation Program. This technical assistance opportunity is specifically open to low-income, energy-burdened communities that are also experiencing either direct environmental justice impacts, or direct economic impacts from a shift away from historical reliance on fossil fuels. The North American final assembly requirement continues to apply. 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. Enhances the tax credit for carbon capture and direct air capture. U.S. Department of Defense 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. Beginning January 1, 2023, a tax credit will be available to businesses for the purchase of new EVs and FCEVs. The incentive must first be taken as a credit against the entitys alternative fuel tax liability; any excess over this fuel tax liability may be claimed as a direct payment from the IRS. The credit provides a varying, four-tier incentive depending on the carbon intensity of the hydrogen production pathway. Align the implementation of AFVs and associated fueling infrastructure. But given the scarcity of fuel . These latter requirements came into effect upon the publication of the Treasury Departments guidance document regarding the critical mineral and battery component requirements. The U.S. Environmental Protection Agencys (EPA) Clean School Bus program provides funding to eligible applicants for the replacement of existing school buses with clean, alternative fuel school buses or zero-emission school buses. Clean Construction is a voluntary program that promotes the reduction of diesel exhaust emissions from construction equipment and vehicles by encouraging proper operations and maintenance, use of emissions-reducing technologies, and use of cleaner fuels. For more information, see the Reducing Diesel Emissions from Construction and Agriculture website. Alternative Fuel Infrastructure Tax 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. 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 total tax credit available for a vehicle may not exceed $7,500. Fuel Cells (Residential Fuel Cell and Microturbine System), See tax credits for 2022 and previous years, Hot Water Boilers (Natural Gas, Propane, Oil), 30% for property placed in service after December 31, 2016, and before January 1, 2020, 26% for property placed in service after December 31, 2019, and before January 1, 2022, 30% for property placed in service after December 31, 2021, and before January 1, 2033, 26% for property placed in service after December 31, 2032, and before January 1, 2034, 22% for property placed in service after December 31, 2033, and before January 1, 2035. State Laws and Incentives Find laws and incentives for hydrogen by state. Phone: (877) 623-2322 The U.S. Department of Energy (DOE) provides grants for transportation decarbonization research projects. Vehicles with a gross vehicle weight rating (GVWR) below 14,000 pounds (lbs.) washingtonpost. [email protected] For more information, see the VALE Program website. Updated guidance, effective April 18, 2023, helped clarify the rules for cars entering service in 2023. 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. Federal Energy Management Program U.S. General Services Administration Phone: (800) 829-1040 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. Information about federal and state financial incentives for hydrogen fuel cell projects. 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. Find information about several other incentives related to hydrogen and fuel cells . For more information, visit the EPAct State and Alternative Fuel Provider Fleets 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 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.. Yes, hydrogen fuel cell cars do qualify for tax credits and incentives in some states, but the laws and incentives. http://www.energy.gov/lpo/loan-programs-office. Fleet Alternative Fuel Vehicle Team That compares to 30kWh for fuel-cell vehicles and 77kWh for battery EVs. Additional funding eligibility and considerations will apply. For ethanol blends containing more than 50% but no greater than 83% ethanol by volume, retailers must (1) post the exact percentage of ethanol concentration, (2) post the percentage rounded to the nearest multiple of 10, or (3) post notice that the fuel contains 51% to 83% ethanol. (Reference 49 U.S. Code 5312 and 5339 and Public Law 117-58), Point of Contact Low-emitting ferries must use an alternative fuel, such as methanol, natural gas, propane, hydrogen, and electricity. Each state's energy office receives SEP funding and manages all SEP-funded projects. [email protected] Electric vehicle charging or hydrogen fueling infrastructure. Applications for the first funding round are due May 16, 2022. (Reference Public Law 117-58 and 42 U.S. Code 16091). https://www.energy.gov/eere/femp/federal-energy-management-program-contacts, Under the Energy Policy Act (EPAct) of 1992, the U.S. Department of Energy (DOE) was directed to determine whether private and local government fleets should be mandated to acquire alternative fuel vehicles (AFVs). A tax credit for fuel-cell vehicles was given a short-term extension through the end of 2016, notes a Navigant Research blog post. This model sports a polymer electrolyte fuel cell engine with a max power output of 128 kilowatts. These challenges seek to lower the barriers U.S.-based innovators face by spurring manufacturing, developing innovative solutions and products, and creating new domestic jobs and opportunities through public-private partnerships. Qualified Commercial Clean Vehicles Credit. DOE will provide technical assistance services to support up to 36 communities to develop their own community-driven clean energy transition approach.