Do you know about the Alternative Fuel Infrastructure Tax Credit? This may be an opportunity for you to expand your business and save money at the same time. If you recently installed new equipment at your fuel station to provide hydrogen fuel, or if you’re interested in adding a PowerTap generator to your facility this year, you may be eligible to receive a tax credit from the federal government. Here is information about the Alternative Fuel Infrastructure Tax Credit and how it changed as of January 1, 2023.
If you installed equipment before the end of 2022….
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. Permitting and inspection fees are not included in covered expenses. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Unused credits that qualify as general business tax credits, as defined by the Internal Revenue Service (IRS), may be carried backward one year and carried forward 20 years. For more information about claiming the credit, see IRS Form 8911, which is available on the IRS Forms and Publications website.
If you are considering adding equipment to your fuel station this year….
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. Permitting and inspection fees are not included in covered expenses.
Qualified fueling equipment must be installed in locations that meet the following census tract requirements:
- The census tract is not an urban area;
- A population census tract where the poverty rate is at least 20%; or
- Metropolitan and non-metropolitan area census tract where the median family income is less than 80% of the state medium family income level.
Eligible projects must also meet apprenticeships and prevailing wage requirements.
For more information about the Alternative Fuel Infrastructure Tax Credit and tax credits you may qualify for with your investment in alternative energy, check out the Alternative Fuels Data Center website.
PowerTap Hydrogen makes it easy to expand your business to provide alternative fuel solutions.
PowerTap Hydrogen allows fuel station owners to produce hydrogen fuel on-site, with a production unit taking up less than 1,000 square feet of space. Our units can produce over 1,250 kg of pure hydrogen daily using only city water, natural gas, and electricity. With PowerTap Hydrogen, it’s possible to produce fuel at less than $2 per kilogram–that’s about $9 less than purchasing hydrogen fuel from a wholesaler or producing it onsite via alternative solutions.
If you’re interested in diversifying your current product mix or would like to begin a journey in the exciting future of alternative energy solutions, contact our team at PowerTap Hydrogen today. We’d love to show you how easy it is to be a part of the hydrogen fuel revolution.