IRS Instruction 8911 – In an era where sustainable energy is gaining momentum, tax incentives play a crucial role in encouraging the adoption of alternative fuels. If you’ve installed charging stations for electric vehicles (EVs) or refueling equipment for other alternative fuel vehicles at your home or business, you may qualify for valuable tax savings through the Alternative Fuel Vehicle Refueling Property Credit. This credit, claimed using IRS Form 8911 and its accompanying Schedule A, can offset costs for qualifying installations. In this comprehensive guide, we’ll break down the IRS Instruction 8911, eligibility requirements, how to calculate and claim the credit, and key updates for the 2025 tax year—helping you navigate the process efficiently.
Whether you’re a homeowner adding an EV charger or a business owner expanding refueling infrastructure, understanding Form 8911 can lead to significant tax benefits. Let’s dive into the details.
What Is the Alternative Fuel Vehicle Refueling Property Credit?
The Alternative Fuel Vehicle Refueling Property Credit, outlined in IRS Section 30C, rewards taxpayers for installing property that stores or dispenses alternative fuels into vehicles. This includes equipment for fuels like electricity, ethanol blends (at least 85%), natural gas, hydrogen, biodiesel mixtures, and other specified transportation fuels. The credit applies to both personal and business use, but it’s divided into depreciable (business/investment) and non-depreciable (personal) portions.
- Business/Investment Use: Treated as a general business credit, which can be carried forward if not fully used.
- Personal Use: Treated as a personal credit with no carryover—use it or lose it in the current tax year.
Form 8911 is used to calculate this credit, and you must complete a separate Schedule A (Form 8911) for each qualifying property installed during the tax year. The credit is nonrefundable, meaning it reduces your tax liability but doesn’t result in a refund beyond that.
This incentive supports the growth of clean energy infrastructure, such as EV charging stations, which have seen explosive demand with over 79,000 public stations in the U.S. as of mid-2025. For businesses dispensing alternative fuels, the credit can cover up to 30% of costs (with limits), making it a smart investment in green technology.
Eligibility Criteria for Claiming the Credit
Not every refueling setup qualifies. Here’s a breakdown of the key requirements based on the latest IRS guidelines:
- Qualified Property: Must store or dispense alternative fuel at the point where it’s delivered into a vehicle’s fuel tank or recharge an electric vehicle at the charging location. This excludes buildings or structural components. Bidirectional charging equipment (that both charges and discharges electricity) also qualifies.
- Placed in Service: The property must be installed and ready for use during your tax year, with original use beginning with you (the claimant).
- Location Restrictions: Cannot be used predominantly outside the U.S. For personal use, it must be at your main home. Post-2022 installations must be in an eligible census tract—low-income or non-urban areas identified by the IRS (use the Census Bureau’s tool and Appendix B from IRS Notices 2024-20 and 2024-64 to verify the 11-digit GEOID).
- Beginning of Construction: For properties after January 28, 2023, meet Prevailing Wage and Apprenticeship (PWA) rules, or qualify under pre-2023 starts via physical work or 5% cost safe harbors.
- Special Rules: Sellers to tax-exempt entities can claim if they disclose details. Depreciable property for two- or three-wheeled EVs used on public roads may qualify.
If you’re a partnership or S corporation, you must file Form 8911; others can report pass-through credits directly on Form 3800. Applicable entities (like certain organizations post-2022) can elect to treat the credit as a payment against tax for potential refunds.
Common Qualifying Examples
- Home EV chargers (e.g., Level 2 stations).
- Business natural gas dispensers.
- Hydrogen refueling pumps.
Non-qualifying items include standard gasoline pumps or property not meeting census tract rules.
How to Calculate the Credit Amount?
The credit rate depends on whether PWA requirements are met and the property’s use:
| Property Type | Base Rate | Rate with PWA | Per-Item Limit | Overall Cap |
|---|---|---|---|---|
| Business/Investment (Depreciable) | 6% of cost | 30% of cost | $100,000 | N/A |
| Personal (Non-Depreciable at Main Home) | 30% of cost | N/A | $1,000 | N/A |
Costs are reduced by any Section 179 deduction claimed on the property. For mixed-use property, prorate based on business/investment months in the year.
- PWA Requirements for 30% Rate: Pay prevailing wages to laborers and ensure apprentices perform 10-15% of hours (with daily ratios). File Form 7220 for each property to certify compliance.
- Transfers and Elections: Eligible taxpayers can transfer credits to third parties (Section 6418) or elect payments (Section 6417), but pre-filing registration is required.
The basis of the property must be reduced by the credit amount claimed, and recapture rules apply if the property ceases to qualify within three years.
Step-by-Step Guide to Filling Out Form 8911 and Schedule A
Use the December 2025 revision of Form 8911 for 2025 tax years. Here’s how to complete it:
Form 8911
- Item A: Enter the total number of qualified properties (complete a Schedule A for each).
- Part I (Business/Investment Credit): Sum totals from Schedule A(s) on Line 1; add pass-through credits on Line 2.
- Part II (Personal Credit): Calculate based on non-business portions.
- Lines for Limits: Account for tax liability, tentative minimum tax, and other credits. Unused personal credit is lost.
Schedule A (Form 8911)
- Line 1: IRS registration number if electing transfer or payment.
- Line 4: Date construction began.
- Line 5: Placed-in-service date.
- Line 6: Confirm eligible census tract.
- Line 7: Certification/permit number if applicable.
- Line 9: Business/investment use percentage.
- Line 11: Subtract Section 179 deduction.
- Line 13: Certify PWA compliance (attach Form 7220 if claiming 30%).
Attach Form 8911 to your tax return (e.g., Form 1040, 1120). For pass-through entities, report on Schedule K-1 with code AO.
Recent Changes and Updates for 2025
The IRS has made several updates to Form 8911 instructions:
- Termination Date: The credit ends for property placed in service after June 30, 2026, per the One Big Beautiful Bill Act (P.L. 119-21).
- Property Count: Post-2024, Item A requires the total number of properties.
- PWA Filing: Separate Form 7220 per property for increased rates.
- Census Tracts: Updated via Notices 2024-20 (modified by 2024-64).
- Corrections: See IRS notices for fixes to prior revisions.
These changes reflect broader tax reforms, including extensions from the Tax Cuts and Jobs Act and adjustments to energy credits under the Inflation Reduction Act.
Frequently Asked Questions About IRS Form 8911
- Can I claim for an EV charger at home? Yes, if it’s at your main residence, in an eligible census tract, and meets other criteria—up to $1,000 credit.
- What if I sell the property? Recapture may apply if sold or disqualified within three years.
- How do I verify census tracts? Use the IRS-provided tool and check against Appendix B.
- Is the credit refundable? No, but applicable entities can elect payments.
For the latest forms, download Form 8911 (Rev. December 2025) and Schedule A from the IRS website.
Maximizing Your Tax Savings with Form 8911
Claiming the Alternative Fuel Vehicle Refueling Property Credit not only reduces your tax bill but also supports environmental goals. Consult a tax professional to ensure compliance, especially with PWA rules or transfers. By staying informed on IRS Instruction 8911, you can make the most of this incentive before its June 30, 2026, expiration.
For more details, visit the official IRS pages or review the full instructions. If you’re filing for 2025, act now to gather documentation and verify eligibility.