Commercial Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit
Businesses are eligible to receive tax credits for purchasing new or used medium- and heavy-duty AFVs and medium- and heavy-duty vehicles converted to alternative fuels, and installing alternative fueling infrastructure. Eligible alternative fuels are natural gas, propane, hydrogen, dimethyl ether, and electricity. Tax credits for qualified alternative fueling infrastructure are for up to 50% of the cost to purchase and install the infrastructure. New commercial vehicle tax credit amounts vary based on gross vehicle weight rating (GVWR) and are up to 75% of the incremental cost, with maximum credit values as follows:
|GVWR||Maximum Credit Amount Per Vehicle|
|Up to 14,000 pounds (lbs.)||$25,000|
|14,001 to 26,500 lbs.||$50,000|
|Over 26,500 lbs.||$100,000|
Leased AFVs may receive a tax credit for 75% cost, up to $25,000 per vehicle. This exemption also applies to qualified used vehicles modified with a U.S. Environmental Protection Agency-certified aftermarket conversion, if the vehicle is being sold for the first time after modification. Modified vehicles are eligible for credits equal to 50% of the commercial vehicle conversion cost, up to $25,000.
Each entity may claim up to $250,000 or credits for 25 vehicles per year. All credits earned must be used in that calendar year or the subsequent year. Tax credits are available on a first-come, first-served basis and are subject to annual limits of $2 million for vehicle credits, and $6 million for infrastructure.