To designate these Alternative Fuel Corridors (AFC), FHWA solicits nominations from state and local officials and works with other federal officials and industry stakeholders. TLTF will terminate 30 days after submitting findings and recommendations to Congress. 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. The value of the credit to consumers from this automaker then decreases to 50% before being phased out entirely after six months. The U.S. Department of Energy Hydrogen and Fuel Cell Technologies Office in the Office of Energy Efficiency and Renewable Energy offers information about federal and state financial incentives for hydrogen fuel cell projects. http://www.irs.gov/, Alternative fuels used in a manner that the Internal Revenue Service (IRS) deems as nontaxable are exempt from federal fuel taxes. (Reference 42 U.S. Code 13212 (c)), Point of Contact At least one H2Hub must demonstrate the end-use of hydrogen in the transportation sector. 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. Excise Tax Branch 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. State and federal governments enact laws and provide incentives to help build and maintain a market for hydrogen fuel and vehicles. Qualifying advanced energy project include, but are not limited to, projects that re-equip, expand, or establish a manufacturing or industrial facilities that produce or recycle light-, medium-, and heavy-duty EVs, FCEVs, EV charging stations, and hydrogen fueling stations. Additional requirements for federal fleets were included in the Energy Independence and Security Act of 2007, such as fleet management plans and petroleum reduction from 2005 levels (Section 142), low greenhouse gas (GHG) emitting vehicle acquisition requirements (Section 141), and renewable fuel infrastructure installation requirements (Section 246). Phone: (800) 829-1040 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. As amended in January 2008, Section 301 of EPAct 1992 expands the definition of AFVs to include hybrid electric vehicles, fuel cell vehicles, and advanced lean burn vehicles. This shift could result in a roughly 20 percent reduction of GHG truck . States that choose to adopt these requirements will be responsible for enforcement and vehicle labeling. Do hydrogen fuel cell cars qualify for EV tax credits in 2022? The maximum credit is $500 per half kilowatt (kW) of power capacity. DOE will provide technical assistance services to support up to 36 communities to develop their own community-driven clean energy transition approach. 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. (Reference Public Law 114-94 and 23 U.S. Code 166). For more information, see the EPA Ports Initiative website. For more information, see the CRP Implementation Guidance and Fact Sheet. Eligible AFVs include school buses and school fleet vehicles. 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. Permitting and inspection fees are . 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. 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. The tax credit raises the value of some projects by more than 50% . The U.S. Environmental Protection Agency (EPA) must establish a competitive Clean Ports grant program for the purchase or installation of zero emission port equipment or technology. must have a battery capacity of at least seven kilowatt-hours (kWh) and vehicles with a GVWR above 14,000 lbs. lgprogram@hq.doe.gov (Reference 49 U.S. Code 5312 and 5339, Public Law 114-94, Public Law 113-159, and Public Law 117-58). New Clean Hydrogen Production Tax Credit (45V)1 Creates a new 10-year incentive for clean hydrogen production with four tiers and a maximum of 4 kilograms of CO equivalent (CO2e) per kilogram of 2 hydrogen (H 2). http://www.irs.gov/. For vehicles delivered on or after April 18, 2023, limitations apply that went into effect January 1, 2023, related to the vehicles manufacturers suggested retail price (MSRP), the buyers modified adjusted gross income, and the vehicles battery capacity. 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%. Align the implementation of AFVs and associated fueling infrastructure. In case of joint occupancy, the maximum qualifying costs that can be taken into account by all occupants for figuring the credit is $1,667 per 0.5 kW. See the IRS Commercial Clean Vehicle Credit for more details. 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. Phone: (703) 605-5630 (Reference Public Law 117-58 and 42 U.S. Code 16091). Hydrogen Shot focuses on various projects that bridge technical gaps in hydrogen production, storage, and distribution and utilization technologies, including fuel cells. The credit would initially be USD 3 per kilogram for 2022-2024 and then . You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The energy tax credit was first enacted in the Energy Tax Act of 1978 (P.L. . An $8,000 federal tax credit on qualifying hydrogen fuel-cell passenger vehicles has been extended through January 2022 though the latest economic stimulus bill passed by the U.S.. Qualifying EVs purchased and delivered between August 17, 2022, and December 31, 2022, are eligible for the tax incentive as described below for vehicles purchased before August 17, 2022, but are limited to vehicles with final assembly in North America. 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.". Under the Energy Policy Act (EPAct) of 1992, 75% of new light-duty vehicles acquired by covered federal fleets must be alternative fuel vehicles (AFVs). (Reference 42 U.S. Code 13257). The U.S. Department of Transportation (DOT) Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant program provides federal financial assistance to eligible surface transportation infrastructure projects. 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. 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. 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. The CFI Program offers two types of funding opportunities: the Community Charging and Fueling Grants (Community Program) and the Alternative Fuel Corridor Grants (Corridor Program). Credits cannot be allocated to projects located in census tracts where projects have been previously allocated. The list below contains summaries of all Federal laws and incentives related to hydrogen. 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. Subscribe to receive news and updates by email. Eligible entities must be registered with the Internal Revenue Service (IRS). (Reference Public Law 117-58 and 23 U.S. Code 1). 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. Additional requirements may apply. creates a new 10-year incentive for clean hydrogen production tax credit with up to $3.00/kilogram. 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. Find information about several other incentives related to hydrogen and fuel cells . 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. Information about federal and state financial incentives for hydrogen fuel cell projects. Rebate, grant, or other incentive programs that fund the purchase and installation of energy efficiency, renewable energy, and zero-emission transportation and associated infrastructure. A principal residence is the home where you live most of the time. 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. 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. Additional terms apply. Under Standard Compliance, the AFVs that covered fleets acquire help them achieve compliance, with each AFV acquired earning the fleet one AFV-acquisition credit. Covered fleets may earn additional credits for AFVs earned in excess of their requirements, and these credits may be banked for future use toward compliance or traded with other fleets. 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. Eligible state funding activities include truck stop electrification, diesel engine retrofits, vehicle-to-infrastructure communications equipment, public transportation, port electrification, and deployment of alternative fuel vehicles, including charging or fueling infrastructure and the purchase or lease of zero emission vehicles. Of those 50 vehicles, at least 20 must be used primarily within a single Metropolitan Statistical Area/Consolidated Metropolitan Statistical Area, and those same 20 vehicles must also be capable of being centrally fueled for the fleet to be subject to the regulatory requirements. FHWA must update and redesignate corridors periodically thereafter. 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). States are allowed to exempt certified alternative fuel vehicles (AFVs) and electric vehicles (EVs) from HOV lane requirements within the state. Point of Contact A credit up to $7,500 is available for qualified purchases of new battery or hydrogen fuel cell powered vehicles. Fleets that use fuel blends containing at least 20% biodiesel (B20) may earn credits toward their annual requirements. Credits would be capped to an income level of. 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. The fuel cell tax credit applies to a percentage of fuel cell system costs, up to a maximum of $3,000 per kilowatt of fuel cell rated power. 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. For more information, see the GSA's AFV website. (Reference 49 U.S. Code 5312 and 5339 and Public Law 117-58), Point of Contact State Laws and Incentives Find laws and incentives for hydrogen by state. Diesel Emissions Reduction Act Enter the total, if any, credits from Schedule 3 (Form 1040), lines 1 through 4, 6d, and 6I; and Form 5695, line 30. Extends the deadline for construction to January 1, 2033, and increases the credit amount. Vehicles and infrastructure must meet the Federal Aviation Administration's Airport Improvement Program requirements, including Buy American requirements. FHWA must establish an AFC grant program to award grants to eligible entities, by November 15, 2022. Priority will be given to projects that include: Applicants must demonstrate how proposed projects will benefit underserved communities that lack access to clean transportation options. For more information, see the Grants for Energy Improvements at Public School Facilities website. For an entity to be eligible to claim the credit they must be liable for reporting and paying the federal excise tax on the sale or use of the fuel in a motor vehicle. Projects can also elect to claim up to a 30% investment tax credit under Section 48. 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. https://www.epa.gov/dera. Additional funding eligibility and considerations will apply. Eligibility includes retrofit facilities. Beginning January 1, 2023, the Clean Vehicle Credit provides a tax credit of up to $4,000 for the purchase of a pre-owned EV or FCEV. 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 . Loan Guarantee Program 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. experts on saving energy at The public will have, Notices, Revenue Procedures, Revenue Rulings, and Announcements (sometimes referred to as sub-regulatory guidance or Internal Revenue Bulletin guidance), IRS forms, instructions, and publications, Hydrogen Storage Engineering Center of Excellence, Regulations, Guidelines, & Codes & Standards, Technological Feasibility & Cost Analysis, Infrastructure Development & Financial Analysis, Annual Merit Review & Peer Evaluation Reports, Database of State Incentives for Renewables and Efficiency, About Office of Energy Efficiency & Renewable Energy, Financial Incentives for Hydrogen and Fuel Cell Projects. 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. Department of Energy (DOE) must establish for local educational agencies competitive grant program for energy improvements upgrades, including installation of alternative fuel vehicle (AFV) fueling or charging infrastructure on school grounds and purchase or lease AFVs. For more information, including funding availability, see the Regional Clean Hydrogen Hubs website. 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 U.S. Department of Transportation (DOT) must establish a carbon reduction formula program for states to reduce transportation emissions. For vehicles placed in service before April 18, 2023, the available CVC tax credit is a base amount of $2,500 plus, for a vehicle that draws propulsion energy from a battery with at least 7 kWh of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kWh. 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. http://www.ftc.gov/. 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. In November 2022, the United States committed that ZE truck sales nationwide would reach 100 percent in 2040. Transportation energy conservation programs; Energy efficiency, renewable energy, and zero-emission transportation and associated infrastructure financing programs; and. Additional maps and tools to allow states to compare and evaluate different AFV adoption and use scenarios. 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. Section 45W introduces a significant tax credit for commercial vehicles. http://www.defense.gov/.