U.S. Department of Energy In November 2022, the United States committed that ZE truck sales nationwide would reach 100 percent in 2040. An assessment on how ZEVs will impact the applicants workforce. Financial Incentives for Hydrogen and Fuel Cell Projects | Department of Energy Skip to main content Enter the terms you wish to search for. 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. 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. The North American final assembly requirement continues to apply. For more information, see the GSA's AFV website. The value of the credit to consumers from this automaker then decreases to 50% before being phased out entirely after six months. For more information, see the Clean Cities Coalition Network website. 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. Yes, hydrogen fuel cell cars do qualify for tax credits and incentives in some states, but the laws and incentives. 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. 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. The public will have opportunities to provide input as the implementation process unfolds. 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. U.S. Internal Revenue Service Office of Chief Counsel 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. Under the Energy Policy Act (EPAct) of 1992, as amended, certain state government and alternative fuel provider fleets are required to acquire alternative fuel vehicles (AFVs) as a portion of their annual light-duty vehicle acquisitions. The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032. Eligible projects may include the deployment of fueling infrastructure, including associated hardware and software, for alternative fuels. 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. 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. Summary States are also allowed to establish programs allowing low-emission and energy-efficient vehicles to pay a toll to access HOV lanes. For more information, see the EPA Ports Initiative website. 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 . 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). 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. Permitting and inspection fees are not included in covered expenses. The $7,500 credit also applies to hydrogen fuel-cell cars like the Toyota Mirai or Hyundai Nexo. home and work. 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). U.S. Environmental Protection Agency Diesel Emissions Reduction Act The U.S. Department of Energy (DOE) provides grants or loan guarantees through the Loan Guarantee Program for the domestic production of efficient hybrid vehicles, plug-in hybrid electric vehicles, all-electric vehicles, and hydrogen fuel cell electric vehicles,. The U.S. Department of Energy (DOE) offers grants through the Energy Efficiency and Conservation Block Grant (EECBG) Program to reduce energy use and fossil fuel emissions, and to improve energy efficiency in transportation. Section 45W introduces a significant tax credit for commercial vehicles. Electric vehicle supply equipment (EVSE) manufacturers must determine and disclose (via a delivery ticket or permanent label or marking) kilowatt capacity, voltage, whether the voltage is alternating current or direct current, amperage, and whether the system is conductive or inductive. Eligible projects include: Eligible applicants include U.S. territories, state, local, and tribal governments. Includes new census tract restrictions on location restricting development to low-income and rural communities. 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 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. (Reference 49 U.S. Code 47139). For more information, visit the EPAct State and Alternative Fuel Provider Fleets website. (Reference Public Law 117-58 and 42 U.S. Code 16091). Eligibility includes retrofit facilities. 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. 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. U.S. Department of Energy For more information, see the DOT RAISE Grants website. 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. 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. In the transportation sector, light . Public Law 117-169, 136 Stat. Fuel dispensers distributing biodiesel blends containing more than 5% biodiesel by volume must include the percentage of biodiesel included. 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. Port electrification or electrification master planning; Development of port or terminal micro-grids; Worker training to support electrification technology; and. Consumers who purchase qualified residential fueling equipment between January 1, 2023, and December 31, 2032, may receive a tax credit of up to $1,000. 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. Updated guidance, effective April 18, 2023, helped clarify the rules for cars entering service in 2023. States may also receive project funding from technology programs in the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE) for SEP Special Projects. 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. Although there are still just a handful of fuel cell vehicles available for sale, the change could give regular EVs a major advantage and deal a blow to upcoming cars like the 2021 Toyota Mirai. Additionally, fleets that use fuel blends containing at least 20% biodiesel (B20) in medium- and heavy-duty vehicles may earn credits toward their annual AFV-acquisition requirements. The U.S. Department of Energy, Transportation, U.S. Department of Housing and Urban Development, and the U.S. Environmental Protection Agency (Signatory Agencies) joined in signing a memorandum of understanding (MOU) to accelerate the development and adoption of affordable and equitable clean transportation. Fleet Alternative Fuel Vehicle Team The home must be in the United States. 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). Permitting and inspection fees are . 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. 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. Credits cannot be allocated to projects located in census tracts where projects have been previously allocated. 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). U.S. Internal Revenue Service 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. 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 Laws and Incentives View federal laws and incentives for hydrogen. These incentives will increase the demand for clean hydrogen throughout the transportation sector. (Reference 10 U.S. Code 2922g), Point of Contact The Secretary of Transportation, in consultation with the Secretary of Labor, must establish the Truck Leasing Task Force (TLTF) to examine common truck leasing arrangements, including specific agreements relating to the Ports of Los Angeles and Long Beach Clean Trucks Program and similar programs to decrease port operations emissions. . 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. Point of Contact The energy tax credit was first enacted in the Energy Tax Act of 1978 (P.L. 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. EERE distributes the funding through an annual competitive solicitation to state energy offices. The level of the credit provided is based on carbon intensity, up to a maximum of four kilograms of CO, Cannot stack with the Carbon Capture and Sequestration Tax Credit (45Q), Can stack with renewable energy production tax credit and zero-emission nuclear credit, Projects are required to promote good-paying jobs by following prevailing wage standards and apprenticeship requirements to receive the full credit. 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. Tax credits for solar and wind energy property were refundable (credits For more information, see the Reducing Diesel Emissions from Construction and Agriculture 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. This tax credit is also available for future EV owners with a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022. For more information, including current prize challenges, visit the American-Made Challenges website. 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%. Line 15. The Green Book proposes a new six-year production tax credit (PTC) for the production of low-carbon hydrogen in qualified facilities for which construction begins before 2026, where the end use of the hydrogen is for energy, industrial, chemical, or transportation purposes. Federal Energy Management Program Vehicles with a gross vehicle weight rating (GVWR) below 14,000 pounds (lbs.) A number of states offer incentives for the installation of fuel cells and hydrogen energy systems. 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. For more information, see the FHWA Alternative Fuel Corridors website. To be eligible, an airport must be for public use. Vehicles meeting both the critical mineral and the battery component requirements are eligible for a total tax credit of $7,500. Funded projects may include: Funding is authorized through fiscal year 2026. 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. This shift could result in a roughly 20 percent reduction of GHG truck . 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. But given the scarcity of fuel . (Reference 26 U.S. Code 4041). The four-tier incentive breakdown is detailed in the following table: 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: Adds a retail price cap of $55,000 for new cars and $80,000 for pickups, vans, and sport utility vehicles, Credit is reduced or eliminated if a certain percentage of the critical minerals utilized in battery components are not extracted or processed in the United States or a Free Trade Agreement country or recycled in North America; the percentage required increases from 40% in 2024 to 80% in 2026, Credit is reduced or eliminated if electric vehicle is not assembled in North America or if the majority of battery components are sourced outside of North America; the percentage increases from 50% in 2024 to 100% in 2028, Implements an income eligibility limit of $150,000 or $300,000 for jointfilers. (Reference Public Law 117-58, Public Law 112-141, 23 U.S. Code 149, and 23 U.S. Code 151). For more information, including funding availability, timeline, and application materials, see the EPA Clean School Bus website. Research, strategies, and actions to reduce transportation-related emissions and mitigate the effects of climate change. Low-income, underserved, rural, and high-density communities will be prioritized for Community Program funding. The MSRP can be found on the vehicles window sticker, which is also known as the Monroney label; the MSRP for this purpose includes any trim, options, or accessories for the particular vehicle and excludes the destination fee and dealer-provided options and accessories. 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 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. 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. Businesses may not combine this tax credit with the Clean Vehicle Tax Credit. A credit up to $7,500 is available for qualified purchases of new battery or hydrogen fuel cell powered vehicles. The grant program must be established by November 15, 2022. DERA Helpline The U.S. Department of Energy (DOE) administers the Regional Clean Hydrogen Hubs (H2Hubs) program. Phone: (202) 343-9541 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. 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. 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. Hub program seek to define and prove 'clean' hydrogen. 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. 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. Phone: (202) 586-8336 Federal Laws and Incentives. 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. Phone: (703) 605-5630 For more information, see the DOE EECBG Program website. For loan guarantees of over 80%, the loan must be issued and funded by the Treasury Departments Federal Financing Bank. Left unchanged in the new bill are the $8,000 federal tax credit for purchasers of fuel-cell electric vehicles, also called hydrogen fuel-cell vehicles, and the credit for home EV charging . 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. Subscribe to receive news and updates by email. 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. This does not apply to married individuals filing a joint return. The minimum credit amount is $2,500, and the credit may be up to $7,500 based on each vehicles traction battery capacity. The total tax credit available for a vehicle may not exceed $7,500. (Reference U.S. Code 30D and Public Law 117-169). must have a battery capacity of at least 15 kWh. The amount of the credit depends on whether the vehicle meets certain critical minerals and battery component requirements. DOT shall establish the Program by November 15, 2022, and publish annual reports describing the ongoing research and findings. Eligible applicants include metropolitan planning organizations; U.S. territories; special purpose districts and public authorities; and state, local, and tribal governments. 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. Additional funding eligibility and considerations will apply. National Clean Diesel Campaign Canada has a long tradition in hydrogen (fuel cell) technology and is a leader in this field. The program is not intended for research and development projects. Additional requirements apply for vehicles placed in service (delivered) on or after January 1, 2023, and the amount of the credit will depend on whether the vehicle meets new critical minerals and battery components requirements for vehicles placed in service after April 17, 2023. For more information, see the Bipartisan Infrastructure Law CMAQ fact sheet and CMAQ Improvement Program website. 2017, 2018, 2019: 30% . Phone: (202) 326-2222 For more information on the Private and Local Government Fleet Rule compliance, visit the EPAct Private and Local Government Fleet Determination website. The Department of Transportations Federal Transit Administration (FTA) offers grants through the Low or No Emission Grant (Low No) Program to local and state government entities for the purchase or lease of low- or zero-emission transit buses, in addition to the acquisition, construction, or lease of supporting facilities. These latter requirements came into effect upon the publication of the Treasury Departments guidance document regarding the critical mineral and battery component requirements. Enhances the tax credit for carbon capture and direct air capture. (Reference Public Law 117-58). (Reference Public Law 117-58 and 23 U.S. Code 1). For more information, see the Federal Fleet Management website. gsafleetafvteam@gsa.gov DOE may issue loan guarantees for at least 50% of the amount of the loan for an eligible project. Vehicles and infrastructure must meet the Federal Aviation Administration's Airport Improvement Program requirements, including Buy American requirements. AFV fueling or charging infrastructure can be exclusively for the school fleet or students, or open to the public. Grant funding must be used for airport-owned, on-road vehicles used exclusively for airport purposes. For ethanol blends containing no greater than 50% ethanol by volume, retailers must post the exact percentage of ethanol concentration, rounded to the nearest multiple of 10. 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. (Reference 26 U.S. Code 6426 and Public Law 117-169), Point of Contact Eligible projects include, but are not limited to, supporting a modal shift in freight or passenger movement to reduce vehicle miles traveled, developing zero-emission vehicle infrastructure, using one or more demand management strategies to reduce congestion and greenhouse gas emissions, and supporting the installation of electric vehicle charging stations along the National Highways System. To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives. (Reference Public Law 117-58 and 23 U.S. Code 151). H2Hubs will fund the development of at least four regional networks of hydrogen producers, potential hydrogen consumers, and connective infrastructure located in close proximity. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. 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. For more information, see the Bipartisan Infrastructure Law Public Transportation Innovation fact sheet. Phone: (703) 571-3343 dera@epa.gov 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 . . Phone: (202) 586-5000 Alternative fuel mixture credit. Eligible AFVs include school buses and school fleet vehicles. The following fuels are defined as alternative fuels by the Energy Policy Act (EPAct) of 1992: pure methanol, ethanol, and other alcohols; blends of 85% or more of alcohol with gasoline; natural gas and liquid fuels domestically produced from natural gas; propane; coal-derived liquid fuels; hydrogen; electricity; pure biodiesel (B100); fuels, other than alcohol, derived from biological materials; and P-Series fuels. http://www.gsa.gov. Additional terms and conditions apply. 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 Joint Office website. The growing hydrogen industry got a big boost from President Joe Biden's tax-and-climate law: a new 10-year tax credit for clean hydrogen production. 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.
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