IRS Publication 6028 – IRS Forms, Instructions, Pubs 2026 – In today’s push toward sustainable energy, businesses are increasingly adopting clean transportation solutions like electric vehicles (EVs) and alternative fuel fleets. One key incentive supporting this transition is the Alternative Fuel Vehicle Refueling Property Credit, detailed in IRS Publication 6028. This federal tax credit helps offset costs for installing qualified refueling infrastructure, such as EV charging stations or hydrogen dispensers. As of 2026, recent legislative changes have adjusted the program’s timeline, making it essential for businesses to act soon. In this guide, we’ll break down the credit’s eligibility, calculations, and claiming process using insights from IRS Publication 6028 and current updates.
What Is the Alternative Fuel Vehicle Refueling Property Credit?
The Alternative Fuel Vehicle Refueling Property Credit, often referred to as the Section 30C credit, is a federal tax incentive designed to encourage the installation of infrastructure for alternative fuel vehicles. Enacted under the Energy Policy Act of 2005 and expanded by the Inflation Reduction Act of 2022 (IRA), it targets businesses and tax-exempt organizations installing equipment for recharging EVs or dispensing clean fuels like hydrogen.
IRS Publication 6028 specifically focuses on how businesses can leverage this credit to reduce expenses related to qualified property. The credit covers costs for purchasing and installing refueling or recharging equipment, including labor, to support energy transition goals, fleet electrification, and revenue generation from public charging stations.
Key alternative fuels include electricity for EVs and clean-burning options like hydrogen for fuel cell vehicles. This incentive plays a vital role in promoting energy security, lowering emissions, and making sustainable infrastructure more affordable for commercial use.
Eligibility Requirements for Businesses
To qualify for the credit under IRS Publication 6028, businesses must meet specific criteria:
- Property Type: The equipment must be used to recharge electric motor vehicles (including electrical energy storage) or store/dispense alternative fuels. It must be depreciable property with original use starting with the taxpayer.
- Location: The property must be installed in an eligible census tract, defined as low-income communities or non-urban areas. About two-thirds of U.S. census tracts qualify. Businesses can verify eligibility using the Census Bureau’s mapping tool and IRS-provided lists in Appendices A or B of Publication 6028 (depending on the installation date).
- Timing: Originally available for property placed in service from January 1, 2023, through December 31, 2032, the credit has been phased out earlier due to the One Big Beautiful Bill Act of 2025. It now applies only to installations operational by June 30, 2026.
- Business Use: The credit is for commercial or investment properties, not personal residences (which fall under a separate individual credit in Publication 6027).
Tax-exempt entities, such as nonprofits or government organizations, are also eligible and can benefit from direct pay options under the IRA.
Qualified Property and Installation Details
Qualified alternative fuel vehicle refueling property includes:
- EV charging ports or stations.
- Fuel dispensers for hydrogen or other clean fuels.
- Associated items like pedestals, wiring, conduits, electrical panels, and smart charge management systems (if directly traceable to the main equipment).
Installation must occur during the tax year, and costs like labor are includable. However, if shared infrastructure (e.g., an electrical panel) serves non-qualifying purposes, only the allocable portion counts.
For higher credit rates, projects must comply with prevailing wage and apprenticeship (PWA) requirements during construction. This involves paying workers at least the local prevailing wage and ensuring a percentage of labor hours are performed by apprentices.
How to Calculate the Credit Amount?
The credit is calculated per “single item” of property, such as each charging port or fuel dispenser. The base rate is 6% of qualifying costs, up to $100,000 per item. If PWA requirements are met, it increases to 30%, still capped at $100,000 per item.
Costs include:
- The main item (e.g., charging port).
- Directly attributable associated property (e.g., pedestal).
- Ratable shares of shared infrastructure (e.g., pro-rated electrical panel costs).
For example, if a business installs a $15,000 charging port with $500 in pedestal costs and $1,875 in shared wiring/panel expenses, the total basis is $17,375. At 30% (with PWA), the credit is $5,212.50 per port—well under the cap.
| Component | Example Cost per Item | Notes |
|---|---|---|
| Main Property (e.g., Charging Port) | $15,000 | Core equipment cost. |
| Direct Associated (e.g., Pedestal) | $500 | Traceable to one item. |
| Shared Associated (e.g., Wiring/Panel) | $1,250 | Pro-rated across items. |
| Management System | $625 | If applicable and traceable. |
| Total Basis | $17,375 | Multiply by 6% or 30%. |
This structure allows businesses with multiple installations, like fleet charging hubs, to maximize savings.
Steps to Claim the Credit
Claiming the credit is straightforward but requires documentation:
- Verify your location’s census tract eligibility using IRS tools.
- Install and place the property in service by June 30, 2026.
- Gather records: Contracts, receipts for equipment and labor, and PWA compliance proof (if claiming 30%).
- Complete IRS Form 8911 (Alternative Fuel Vehicle Refueling Property Credit) and attach it to your tax return for the installation year.
For tax-exempt entities, explore elective payment options for direct refunds.
Real-World Examples for Businesses
Consider a delivery company installing 40 EV charging ports across 20 DC fast chargers:
- Each port: $15,000.
- Pedestals: $500 per port.
- Shared infrastructure: $1,875 per port.
- Total per port: $17,375.
- With PWA: 30% credit = $5,212.50 per port ($208,500 total).
- Without PWA: 6% credit = $1,042.50 per port ($41,700 total).
This illustrates how meeting PWA can quintuple savings, making large-scale projects more viable.
Key Updates and Considerations for 2026
As of February 2026, the credit’s availability has been shortened by the One Big Beautiful Bill Act of 2025, ending on June 30, 2026—earlier than the original 2032 deadline. Businesses should plan installations promptly to qualify.
For the latest details, consult IRS resources like Publication 6028 (revised November 2024) and related FAQs. Additional incentives may stack with state programs or other federal credits for EVs.
By utilizing the Alternative Fuel Vehicle Refueling Property Credit, businesses can invest in green infrastructure while enjoying significant tax relief. If you’re considering EV charging or alternative fuel stations, review your eligibility today to capitalize on this opportunity before the June 30, 2026, cutoff.