Alternative Fuel Infrastructure Tax Credit

The Alternative Fuel Infrastructure Tax Credit was established by the Energy Policy Act of 2005 and is available for the cost of installing alternative fueling equipment placed into service after 31 December 2005. Qualified alternative fuels are natural gas, liquefied petroleum gas, hydrogen, electricity, E85 or diesel fuel blends containing a minimum of 20% biodiesel. The credit amount is up to 30% of the cost, not to exceed USD 30,000, for equipment placed into service before 1 January 2009. The credit amount is up to 50% not to exceed USD 50,000, for equipment placed into service in 2009. Consumers who purchase residential fueling equipment may receive a tax credit of up to USD 1,000, which increases to USD 2,000 for equipment placed into service after 2008. The maximum credit amount for hydrogen fueling equipment placed into service after 2008 and before 2015, is USD 200,000. The credit expires in 2010 for all other eligible fuel types.

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