IRS Form 8911 – The Alternative Fuel Vehicle Refueling Property Credit offers taxpayers a way to reduce their tax liability when installing equipment for refueling or recharging vehicles that use alternative fuels, such as electricity for electric vehicles (EVs). This credit, claimed via IRS Form 8911, supports the shift toward cleaner energy by incentivizing the setup of home or business charging stations. With updates from recent legislation, including changes under the Inflation Reduction Act and the One Big Beautiful Bill Act, understanding the rules is essential for maximizing benefits during the 2025 tax year filing period in 2026.
What Is the Alternative Fuel Vehicle Refueling Property Credit?
The credit applies to qualified property used to store or dispense alternative fuels into vehicles or recharge EVs. Alternative fuels include electricity, ethanol (at least 85% by volume), natural gas, hydrogen, biodiesel mixtures (at least 20%), and other specified fuels. For EVs, this typically means charging stations, including bidirectional equipment that can both charge a vehicle and discharge energy back to an external source.
Qualified property must be new, with original use starting with the taxpayer, and not primarily used outside the U.S. For property placed in service after 2022, it must be located in an eligible census tract, which can be verified using tools from the U.S. Census Bureau or the Department of Energy. The credit is nonrefundable, meaning it can reduce your tax bill to zero but won’t result in a refund beyond that, except in cases of elective payment elections for certain entities.
This incentive is particularly popular for EV owners installing home chargers, as it covers up to 30% of costs for personal use. Businesses can also benefit, especially if they meet prevailing wage and apprenticeship (PWA) requirements for higher credit rates.
Eligibility Requirements for the Credit
To qualify for the Alternative Fuel Vehicle Refueling Property Credit:
- Property Type: It must be for storing or dispensing alternative fuel at the delivery point or recharging EVs where the vehicle is charged. This includes EV chargers for two- or three-wheeled vehicles designed for public roads.
- Placement Date: The property must be placed in service during the tax year, meaning it’s ready and available for use (e.g., an operational EV charger). The credit is available for installations through June 30, 2026, following changes from P.L. 119-21.
- Location: For post-2022 installations, the property must be in an eligible census tract. Use the 2020 Census Tract Identifier to get your 11-digit GEOID and check against IRS Appendix B. For personal use, it must be at your main home.
- Use: Distinguish between business/investment use (depreciable property) and personal use. Mixed-use property requires prorating based on business percentage.
- Special Rules: Sellers of new property to tax-exempt entities or governments can claim the credit if they disclose it and adjust their costs accordingly. Applicable entities (e.g., tax-exempt organizations) can elect to treat the credit as a payment against tax.
Ineligible items include buildings or structural components. Costs are reduced by any Section 179 deductions before calculating the credit.
Credit Amounts and Limitations
The credit amount varies by use type:
| Use Type | Base Rate | Rate with PWA Met | Maximum per Item | Treatment |
|---|---|---|---|---|
| Business/Investment (Depreciable) | 6% of cost | 30% of cost | $100,000 | General business credit |
| Personal (Non-Depreciable, at Main Home) | 30% of cost | N/A | $1,000 | Personal credit |
Costs must be reduced by Section 179 expensing. For businesses, PWA requirements involve paying prevailing wages and using apprentices for a percentage of labor hours; projects starting before January 29, 2023, automatically qualify for the higher rate. The personal credit is limited by your tax liability and tentative minimum tax, with any excess lost (no carryover).
For example, installing a $3,000 home EV charger in an eligible area could yield a $900 credit (30% of cost, under the $1,000 cap).
How to Claim the Credit Using IRS Form 8911?
Claiming the credit involves several steps:
- Complete Schedule A (Form 8911): File a separate schedule for each qualified property. Include details like registration number (if electing payment or transfer), construction start date, placement date, GEOID for census tract verification, business use percentage, cost, Section 179 deduction, and PWA compliance.
- Fill Out Form 8911:
- Enter the total number of properties in Item A.
- Part I: Business/investment credit from Schedule A and pass-through entities.
- Part II: Personal credit, limited by regular tax minus certain credits and tentative minimum tax.
- Report on Your Return: Attach Form 8911 to your tax return. Business portions go to Form 3800 (General Business Credit). Personal portions are reported on Schedule 3 (Form 1040), line 6j. Partnerships and S corporations must file Form 8911; others with only pass-through credits can report directly on Form 3800.
- Pre-Filing Registration: Required for elective payment or transfer elections under Sections 6417 or 6418.
Gather receipts for costs and installation. If the property ceases to qualify later, recapture may apply under Section 30C(e)(5).
Recent Updates for 2025 and 2026
For tax years beginning in 2025 or later, use the December 2025 revision of Form 8911. The credit now terminates on June 30, 2026, earlier than the previous December 31, 2032 date. Corrections to instructions were issued in May 2025, and changes per Notice 2024-64 in November 2024.
Eligible census tracts for 2025 placements use the 2020 data. Businesses should note expanded options for credit transfers to unrelated parties for cash.
Tips for Maximizing Your EV Charging Station Tax Credit
- Verify your location’s eligibility early using IRS tools or the Argonne National Laboratory mapping.
- For businesses, ensure PWA compliance to access the 30% rate; file Form 7220 per property if claiming the increase.
- Combine with state or utility incentives for additional savings.
- Consult a tax professional, as rules can be complex, especially for mixed-use or pass-through entities.
By claiming the Alternative Fuel Vehicle Refueling Property Credit, you not only save on taxes but also contribute to sustainable transportation. For the latest forms and instructions, visit IRS.gov.