Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 76759 

Issued on September 10, 2024. 

Victor Wicklund, 

Deputy Director, Compliance & Airworthiness 

Division, Aircraft Certification Service. 

[FR Doc. 2024–21209 Filed 9–18–24; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–118269–23] 

RIN 1545–BR19 

Section 30C Alternative Fuel Vehicle 

Refueling Property Credit 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This document contains 

proposed regulations regarding the 

Federal income tax credit under the 

Inflation Reduction Act of 2022 for 

certain costs relating to qualified 

alternative fuel vehicle refueling 

property that is placed in service within 

a low-income community or within a 

non-urban census tract. These proposed 

regulations would affect eligible 

taxpayers who place qualified property 

into service during a taxable year. 

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by November 18, 2024. 

ADDRESSES: Commenters are strongly 

encouraged to submit public comments 

electronically via the Federal 

eRulemaking Portal at https://

www.regulations.gov (indicate IRS and 

REG–118269–23) by following the 

online instructions for submitting 

comments. Requests for a public hearing 

must be submitted as prescribed in the 

‘‘Comments and Requests for a Public 

Hearing’’ section. Once submitted to the 

Federal eRulemaking Portal, comments 

cannot be edited or withdrawn. The 

Department of the Treasury (Treasury 

Department) and the IRS will publish 

for public availability any comments 

submitted to the IRS’s public docket. 

Send paper submissions to: 

CC:PA:01:PR (REG–118269–23), Room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

contact Kevin I. Babitz or Whitney E. 

Brady of Office of Associate Chief 

Counsel (Passthroughs & Special 

Industries) at (202) 317–6853 (not a tollfree number); concerning submissions of 

comments and requests for a public 

hearing, Publications and Regulations 

Section at (202) 317–6901 (not a toll-free 

number) or by email to publichearings@

irs.gov (preferred). 

SUPPLEMENTARY INFORMATION: 

Authority 

This document contains proposed 

amendments to the Income Tax 

Regulations (26 CFR part 1) under 

sections 30C, 48, 48E, 6417, and 6418 of 

the Internal Revenue Code (Code) issued 

by the Secretary of the Treasury or her 

delegate (Secretary) under the authority 

granted under sections 30C(e)(5), (g)(4), 

and (h), 45(b)(12), 48(a)(16), 48E(i), 

6417(h), 6418(g) and (h), and 7805(a) of 

the Code (proposed regulations). 

Section 30C includes three specific 

delegations of regulatory authority. 

First, 30C(h) provides a general grant of 

regulatory authority for section 30C as a 

whole, stating, ‘‘[t]he Secretary shall 

prescribe such regulations as necessary 

to carry out the provisions of this 

section.’’ Second, section 30C(g)(4) 

provides a specific delegation of 

authority related to the prevailing wage 

and registered apprenticeship (PWA) 

requirements: ‘‘The Secretary shall issue 

such regulations or other guidance as 

the Secretary determines necessary to 

carry out the purposes of this 

subsection, including regulations or 

other guidance that provides for 

requirements for recordkeeping or 

information reporting for purposes of 

administering the requirements of this 

subsection.’’ Third, section 30C(e)(5) 

provides a specific delegation of 

authority by cross-reference to provide 

recapture rules similar to those under 

former section 179A (described in part 

III.A. of the Background section and part 

IV.A. of the Explanation of Provisions 

section) as authorized by former section 

179A(e)(4). 

Sections 45(b)(12) and 48(a)(16) 

provide specific delegations of authority 

with respect to the requirements of 

section 45(b), including the PWA 

requirements of section 45(b)(7) and (8) 

that sections 48(a)(10) and (11) and 

48E(d)(3) and (4) refer to, each stating, 

‘‘[t]he Secretary shall issue such 

regulations or other guidance as the 

Secretary determines necessary to carry 

out the purposes of this subsection, 

including regulations or other guidance 

which provides for requirements for 

recordkeeping or information reporting 

for purposes of administering the 

requirements of this subsection.’’ 

Section 48E(i) provides a specific 

delegation of authority with respect to 

the requirements of section 48E, 

including the PWA requirements of 

section 48E(d)(3) and (4), stating, that 

‘‘[n]ot later than January 1, 2025, the 

Secretary shall issue guidance regarding 

implementation of this section.’’ 

Sections 6417(h) and 6418(h) provide 

specific delegations of authority with 

respect to the elective payment election 

rules of section 6417 and the transfer of 

certain credits under section 6418, each 

stating, in part, that ‘‘[t]he Secretary 

shall issue such regulations or other 

guidance as may be necessary to carry 

out the purposes of this section . . .’’ 

Finally, section 7805(a) authorizes the 

Secretary to prescribe all needful rules 

and regulations for the enforcement of 

the Code. 

Background 

I. Overview 

Section 30C of the Code allows a 

credit (section 30C credit) against the 

tax imposed by chapter 1 of the Code 

(chapter 1) with respect to each item of 

qualified alternative fuel vehicle 

refueling property that a taxpayer places 

in service. The section 30C credit is 

determined and allowed with respect to 

the taxable year in which the taxpayer 

places the item of property in service. 

Section 30C was originally enacted by 

section 1342(a) of the Energy Policy Act 

of 2005, Public Law 109–58, 119 Stat. 

594, 1049 (Aug. 8, 2005), to provide a 

credit for the cost of qualified 

alternative fuel vehicle refueling 

property. Section 30C has been 

amended several times since its 

enactment, most recently by section 

13404 of Public Law 117–169, 136 Stat. 

1818, 1966 (August 16, 2022), 

commonly known as the Inflation 

Reduction Act of 2022 (IRA). As 

amended by the IRA, section 30C allows 

taxpayers to claim a credit for up to 30 

percent of the cost of qualified 

alternative fuel vehicle refueling 

property placed in service after 

December 31, 2022, and on or before 

December 31, 2032. 

The amount of the section 30C credit 

is treated as a personal credit or a 

general business credit depending on 

the character of the property that the 

taxpayer places in service. In general, 

the section 30C credit is a 

nonrefundable personal credit allowed 

under subpart B of part IV of subchapter 

A of chapter 1. However, the amount of 

the section 30C credit that is attributable 

to property that is of a character subject 

to an allowance for depreciation 

(depreciable property) is treated under 

section 30C(d)(1) as a current year 

business credit under section 38(b) of 

the Code instead of being allowed under 

section 30C(a). 


lotter on DSK11XQN23PROD with PROPOSALS1
76760 Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 

II. Credit Amount and Limitation 

For property placed in service after 

December 31, 2022, and on or before 

December 31, 2032, section 30C(a) 

provides a credit equal to 6 percent of 

the cost of any qualified alternative fuel 

vehicle refueling property that the 

taxpayer places in service during the 

year, if the property is depreciable 

property. However, for depreciable 

property that is placed in service as part 

of a qualified alternative fuel vehicle 

refueling project that satisfies the 

prevailing wage and apprenticeship 

requirements (discussed further in part 

V of this Background section), the 

amount of the section 30C credit is 

multiplied by five. For property that is 

not subject to depreciation, section 

30C(a) allows a 30 percent credit for any 

property placed in service during the 

taxable year, with no requirement to 

satisfy any prevailing wage and 

apprenticeship requirements. 

The section 30C credit with respect to 

any single item of qualified alternative 

fuel vehicle refueling property placed in 

service by the taxpayer during the 

taxable year is limited to $100,000 in 

the case of depreciable property, and 

$1,000 in any other case. Before the 

IRA’s amendments to section 30C 

became applicable, prior law limited the 

section 30C credit, on a per location 

basis, to $30,000 in the case of 

depreciable property and to $1,000 in 

the case of any other property. Section 

13404 of the IRA modified the 

limitation on the section 30C credit so 

that it now applies with respect to any 

single item of qualified alternative fuel 

vehicle refueling property instead of 

with respect to all qualified alternative 

fuel vehicle refueling property at a 

location. 

Under section 30C(e)(1), taxpayers 

who claim a section 30C credit are 

required to reduce the basis of any 

property for which the section 30C 

credit is allowable by the amount of the 

credit allowed (without regard to the 

rules of section 30C(d)). If a taxpayer 

elects not to claim the credit, then no 

section 30C credit is allowed, whether 

under section 30C(a) or section 38, and 

no basis reduction is required. See 

section 30C(e)(4). 

No section 30C credit is allowable for 

the portion of the cost of any property 

taken into account under section 179. 

Section 30C(e)(3). 

III. Qualified Alternative Fuel Vehicle 

Refueling Property 

A. In General 

Section 30C(c) defines ‘‘qualified 

alternative fuel vehicle refueling 

property’’ by reference to section 179A 

of the Code, with some modifications. 

(Section 30C(e)(6) clarifies that for 

purposes of section 30C, any references 

to ‘‘section 179A’’ are to section 179A 

as in effect immediately before its repeal 

by section 221(a)(34)(A) of the Tax 

Increase Prevention Act of 2014, 

enacted as Division A of Public Law 

113–295, 128 Stat. 4010, 4042 

(December 19, 2014), which is referred 

to as ‘‘former section 179A’’ in this 

preamble.) Following the definition in 

former section 179A, therefore, qualified 

alternative fuel vehicle refueling 

property generally includes any 

depreciable property (not including a 

building and its structural components), 

the original use of which begins with 

the taxpayer, and that is (1) for the 

storage or dispensing of a clean-burning 

fuel into the fuel tank of a motor vehicle 

propelled by such fuel, but only if the 

storage or dispensing of the fuel is at the 

point where such fuel is delivered into 

the fuel tank of the motor vehicle, or (2) 

for the recharging of motor vehicles 

propelled by electricity, but only if the 

property is located at the point where 

the motor vehicles are recharged. See 

former section 179A(d). 

Notwithstanding former section 179A’s 

general requirement that the property be 

depreciable, section 30C allows a 

taxpayer to claim a credit for qualified 

alternative fuel vehicle refueling 

property that is not depreciable 

property, provided that the property is 

installed at the taxpayer’s principal 

residence (within the meaning of 

section 121 of the Code). See section 

30C(c)(1)(A) and former section 

179A(d)(1). 

For purposes of section 30C, ‘‘cleanburning fuels’’ includes only (1) any 

fuel at least 85 percent of the volume of 

which consists of one or more of the 

following: ethanol, natural gas, 

compressed natural gas, liquified 

natural gas, liquefied petroleum gas, or 

hydrogen; (2) any mixture that consists 

of two or more of the following: 

biodiesel (as defined in section 

40A(d)(1) of the Code), diesel fuel (as 

defined in section 4083(a)(3) of the 

Code), or kerosene, and at least 20 

percent of the volume of which consists 

of biodiesel determined without regard 

to any kerosene in such mixture; (3) 

electricity; or (4) any transportation fuel 

(as defined in section 45Z(d)(5) of the 

Code) that is produced after December 

31, 2024. 

Section 30C does not provide a 

general definition of ‘‘motor vehicle.’’ 

However, former section 179A(e)(2) 

defined motor vehicle to mean any 

vehicle that is manufactured primarily 

for use on public streets, roads, and 

highways (not including a vehicle 

operated exclusively on a rail or by 

rails) and that has at least four wheels. 

Further, section 30C(f) explicitly allows 

the credit for depreciable property to 

recharge two- and three-wheeled motor 

vehicles manufactured primarily for use 

on public streets, roads, or highways 

that are propelled by electricity. Section 

30C(f)(1)(A) requires that the 

depreciable property ‘‘meets the 

requirements of subsection (a)(2),’’ but 

there is no subsection (a)(2) in the 

statute. 

Section 30C(c)(2) provides that 

qualified alternative fuel vehicle 

refueling property does not exclude 

otherwise eligible property that both is 

capable of charging the battery of a 

motor vehicle propelled by electricity 

and also allows discharging electricity 

from such battery to an electric load 

external to the motor vehicle. 

B. Eligible Census Tracts 

Section 30C, as amended by the IRA, 

requires that property be placed in 

service in an eligible census tract in 

order to qualify for the credit. An 

eligible census tract is any population 

census tract that either is a low-income 

community under section 45D(e) of the 

Code or is not an urban area (non-urban 

area). See section 30C(c)(3)(B). The 

Census Bureau defines a ‘‘population 

census tract’’ as a small-area geographic 

division of a county or statistically 

equivalent entity defined for the 

tabulation and presentation of data from 

the decennial census and selected other 

statistical programs. Population census 

tracts are comprised of ‘‘census blocks,’’ 

and a census block is the smallest 

geographic area for which the Census 

Bureau collects and tabulates decennial 

census data. The Census Bureau assigns 

to each population census tract, 

including census tracts in U.S. 

territories, a unique 11-digit census tract 

Geographic Identifier (GEOID). Each 11- 

digit census tract GEOID is comprised of 

a 2-digit state GEOID, 3-digit county 

GEOID, and 6-digit census tract GEOID. 

1. Low-Income Community Census 

Tracts 

Section 30C(c)(3)(B)(i)(I) includes as 

an eligible census tract any population 

census tract that is described in section 

45D(e), which defines the term ‘‘lowincome community’’ for purposes of the 

new markets tax credit (NMTC). As a 

general rule, section 45D(e)(1) defines a 

low-income community as any 

population census tract for which the 

poverty rate is at least 20 percent. The 

statute also provides more specific ways 

that a tract can constitute a low-income 

community. Section 45D(e)(1) provides 

that a tract not located within a 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 76761 

1On November 30, 2022, the Treasury 

Department and the IRS published Notice 2022–61 

in the Federal Register (87 FR 73580, corrected in 

87 FR 75141 (Dec. 7, 2022)), providing guidance 

with respect to the PWA requirements in section 

45(b)(7) and (8), including initial guidance for 

determining the beginning of construction under 

section 45 and other credits and the beginning of 

installation under section 179D. The final PWA 

regulations published in the Federal Register (89 

FR 53184) (part III of the Background section) 

provide further detail on the BOC Exception. 

metropolitan area constitutes a lowincome community if the median family 

income for such tract does not exceed 

80 percent of statewide median family 

income. Similarly, a tract located within 

a metropolitan area is a low-income 

community if the median family income 

for such tract does not exceed 80 

percent of the greater of the statewide 

median family income or the 

metropolitan area’s median family 

income. Section 45D(e)(2) provides that 

certain targeted populations (within the 

meaning of section 103(20) of the Riegle 

Community Development and 

Regulatory Improvement Act of 1994 (12 

U.S.C. 4702(20)) may be treated as lowincome communities. Section 45D(e)(3) 

describes the appropriate areas not 

within population census tracts that are 

used to determine poverty rates and 

median family income. Section 

45D(e)(4) describes certain population 

census tracts with a population of less 

than 2,000 that are treated as a lowincome community for purposes of the 

NMTC. Finally, section 45D(e)(5) 

describes population census tracts 

located within a high migration rural 

county. 

Following the guidelines in section 

45D(e), the Community Development 

Financial Institutions Fund (CDFI Fund) 

designates population census tracts as 

low-income communities for purposes 

of the NMTC. The CDFI Fund 

determines these population census 

tracts based in part on American 

Community Survey (ACS) 5-year 

estimates, which are published by the 

Census Bureau. The CDFI Fund updates 

its NMTC determination of ‘‘low-income 

community’’ census tracts 

approximately every five years based on 

the updated ACS 5-year estimates. The 

last update occurred on September 1, 

2023, when the NMTC low-income 

community census tracts were updated 

to be based on the 2016–2020 ACS 5- 

year estimates (2016–2020 NMTC 

tracts), which use the 2020 delineation 

of census tract boundaries (2020 census 

tract boundaries). Prior to September 1, 

2023, the NMTC low-income 

community census tracts were based on 

2011–2015 ACS 5-year estimates (2011– 

2015 NMTC tracts), which use the 2015 

delineation of census tract boundaries 

(2015 census tract boundaries). The next 

update is expected to occur in 2028. 

When there is an update, the CDFI 

Fund provides a one-year transition 

period during which taxpayers may look 

to either of the 5-year census tracts. 

Therefore, between September 1, 2023, 

and August 31, 2024, taxpayers can look 

to either the 2011–2015 NMTC or the 

2016–2020 NMTC tracts to determine 

which population census tracts are lowincome communities for the NMTC 

(and, by extension for section 30C 

purposes). On or after September 1, 

2024, taxpayers must look to the 2016– 

2020 NMTC tracts to determine which 

population census tracts are low-income 

communities for the NMTC. 

2. Non-Urban Area 

Pursuant to section 30C(c)(3)(B)(i)(II), 

an eligible census tract includes a nonurban area. Section 30C(c)(3)(B)(ii), 

defines ‘‘urban area’’ as a population 

census tract that has been designated as 

an urban area by the Secretary of 

Commerce in the most recent decennial 

census. However, as of the 2020 Census 

(that is, the most recent decennial 

census as of the publication of this 

document), the Census Bureau defines 

urban areas on the basis of census 

blocks and not on the basis of 

population census tracts. The Census 

Bureau determines urban areas based on 

how densely developed a territory is, 

and to what extent the territory 

encompasses residential, commercial, 

and other non-residential urban land 

uses. The Census Bureau delineates 

urban areas after each decennial census. 

3. Census Tracts in U.S. Territories 

Section 30C(e)(3) provides generally 

that property used outside the United 

States does not qualify for the section 

30C credit by excluding property 

referred to in section 50(b)(1) of the 

Code, which provides generally that 

property used predominantly outside 

the United States does not qualify for a 

credit to which section 50 applies. 

However, section 50(b)(1)(B) provides 

an exception for certain categories of 

property described in section 168(g)(4) 

of the Code. Section 168(g)(4) describes, 

among other things, property owned by 

a domestic corporation or by a United 

States citizen (other than a citizen 

entitled to the benefits of section 931 or 

section 933) and that is used 

predominantly in a territory (also 

referred to as a possession) of the United 

States by such a corporation or such a 

citizen, or by a corporation created or 

organized in, or under the law of, a 

territory of the United States. 

Accordingly, because section 30C(e)(3), 

by reason of sections 50(b)(1)(B) and 

168(g)(4), would allow for qualified 

alternative fuel vehicle refueling 

property to be used by certain taxpayers 

predominantly in a territory of the 

United States, eligible census tracts 

include low-income community census 

tracts and non-urban census tracts 

located in a territory of the United 

States. 

IV. Property Used by a Tax-Exempt or 

Government Entity 

Section 30C(e)(2) provides that in the 

case of any qualified alternative fuel 

vehicle refueling property the use of 

which is described in section 50(b)(3) 

(generally, use by tax-exempt 

organizations) or (b)(4) (generally, use 

by the United States or a government 

entity or foreign persons or entities) and 

that is not subject to a lease, the person 

who sold such property to the person or 

entity using such property is treated as 

the taxpayer that placed such property 

in service, but only if the seller clearly 

discloses to the tax-exempt or 

government entity in a document the 

amount of any credit allowable under 

section 30C(a) with respect to such 

property (determined without regard to 

section 30C(d) (treating the credit as a 

credit listed in section 38(b) or as a 

personal credit)). For purposes of 

section 30C(d), property to which 

section 30C(e)(2) applies is treated as of 

a character subject to an allowance for 

depreciation. 

V. Prevailing Wage and Registered 

Apprenticeship Requirements 

The IRA amended several sections of 

the Code, including section 30C, to 

provide increased credit amounts for 

taxpayers who satisfy certain 

requirements, including an increased 

credit amount for satisfying prevailing 

wage and registered apprenticeship 

(PWA) requirements. This same 

increased credit amount is available 

under certain sections of the Code, 

including section 30C, if beginning of 

construction occurs before January 29, 

2023 (BOC Exception).1

For properties placed in service after 

December 31, 2022, the section 30C 

credit is equal to 6 percent for 

depreciable property. If a taxpayer 

satisfies the PWA requirements in 

section 30C(g)(2) and (3) or meets the 

BOC Exception with respect to a 

qualified alternative fuel vehicle 

refueling project, then the credit 

determined under section 30C(a) for any 

qualified alternative fuel vehicle 

refueling property that is depreciable 

property and that is part of such project 

is multiplied by five. For purposes of 

the PWA requirements, section 


lotter on DSK11XQN23PROD with PROPOSALS1
76762 Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 

30C(g)(1)(B) defines a ‘‘qualified 

alternative fuel vehicle refueling 

project’’ as a project consisting of one or 

more properties that are part of a single 

project. Section 30C(g)(2)(A) requires 

the taxpayer to ensure that any laborers 

and mechanics employed by the 

taxpayer or any contractor or 

subcontractor in the construction of any 

qualified alternative fuel vehicle 

refueling property that is part of a 

qualified alternative fuel vehicle 

refueling project are paid wages at rates 

not less than prevailing rates. Under 

section 30C(g)(3), rules similar to the 

rules in section 45(b)(8) apply regarding 

the apprenticeship requirements. 

On June 25, 2024, the Treasury 

Department and the IRS published final 

regulations in the Federal Register (89 

FR 53184) that govern the increased 

credit or deduction amount available for 

taxpayers satisfying the PWA 

requirements that the IRA established 

with respect to several credits, 

including the section 30C credit (final 

PWA regulations). Specifically for the 

section 30C credit, the final PWA 

regulations provided clarifications to 

the applicable scope of the PWA 

requirements. 

VI. Coordination With Sections 6417 

and 6418 

Section 6417 allows an applicable 

entity (as defined in section 

6417(d)(1)(A), generally including taxexempt and government entities, Indian 

Tribal governments, and Alaska Native 

Corporations, among others) to make an 

election to be treated as making a 

payment against the tax imposed by 

subtitle A of the Code for the taxable 

year with respect to which an applicable 

credit (as defined in section 6417(b)) 

was determined equal to the amount of 

the applicable credit. Section 6417(b)(1) 

includes the amount of a section 30C 

credit, to the extent treated under 

section 30C(d)(1) as a general business 

credit under section 38, as an applicable 

credit. 

Section 6418 permits an eligible 

taxpayer (defined in section 6418(f)(2) 

as a taxpayer not described in section 

6417(d)(1)(A)) to make an election to 

transfer all or a portion of an eligible 

credit (defined in section 6418(f)(1)), 

determined with respect to such 

taxpayer for any taxable year to an 

unrelated taxpayer (within the meaning 

of section 267(b) or 707(b)(1)). Section 

6418(f)(1)(A)(i) includes the amount of a 

section 30C credit, to the extent treated 

under section 30C(d)(1) as a general 

business credit under section 38, as an 

eligible credit. 

VII. Prior Guidance, Request for 

Comments, and Other Documents 

Relating to the Alternative Fuel Vehicle 

Refueling Property Credit 

A. Notice 2007–43 

On May 29, 2007, the Treasury 

Department and the IRS published 

Notice 2007–43, 2007–22 I.R.B. 1318, 

which provided interim guidance on the 

then-recently enacted section 30C. This 

notice provided specific guidance 

relating to the computation of the 

section 30C credit and the treatment for 

purposes of the credit of converted and 

dual-use refueling property. 

B. Notice 2022–56 

On November 21, 2022, the Treasury 

Department and the IRS published 

Notice 2022–56, 2022–47 I.R.B. 480. 

This notice requested general comments 

on issues arising under section 30C, as 

amended by the IRA, as well as specific 

comments concerning: (1) depreciable 

property; (2) the definition of a ‘‘single 

item’’; (3) bidirectional charging 

equipment; (4) eligible census tracts; (5) 

recapture; and (6) miscellaneous topics. 

The Treasury Department and the IRS 

received 135 comments from industry 

participants, environmental groups, 

individual consumers, and other 

stakeholders. The Treasury Department 

and the IRS appreciate the commenters’ 

interest and engagement on these issues. 

These comments have been considered 

carefully in the preparation of these 

proposed regulations. 

C. Notice 2024–20 

On February 12, 2024, the Treasury 

Department and the IRS published 

Notice 2024–20, 2024–7 I.R.B. 668, to 

provide guidance on eligible census 

tracts for the section 30C credit and to 

announce the intent to propose 

regulations for the credit. This notice 

describes relevant census concepts, 

provides background and definitions for 

low-income communities and nonurban census tracts, and explains the 

census tract boundaries that apply for 

the relevant census tract determinations. 

The notice also provides taxpayers with 

a list of eligible census tracts in advance 

of the 2023 filing season and explains 

how taxpayers can identify the 11-digit 

census tract identifier for a location 

where a property is placed in service. 

Explanation of Provisions 

I. 30C Property, Recharging Property, 

Refueling Property 

Proposed § 1.30C–1(a) would provide 

a general overview of the proposed 

section 30C regulations. Proposed 

§ 1.30C–1(b) would provide definitions 

that would apply for purposes of section 

30C and the 30C regulations. 

The proposed regulations use the term 

‘‘30C property’’ to describe property that 

is eligible for the section 30C credit. As 

proposed, the term 30C property would 

generally be synonymous with the 

statutory phrase ‘‘qualified alternative 

fuel vehicle refueling property.’’ 

Proposed § 1.30C–1(b)(1) would define 

30C property to include any property 

(other than real property and a building 

and its structural components) that is 

comprised of components that are 

functionally interdependent for 

‘‘refueling property’’ or ‘‘recharging 

property’’ and, if applicable, an integral 

part of the refueling property or 

recharging property. For purposes of the 

proposed regulations, refueling property 

would mean property for the storage 

and dispensing of a qualified alternative 

fuel into the fuel tank of a motor vehicle 

propelled by such fuel, but only if the 

storage or dispensing of the fuel is at the 

point where such fuel is delivered into 

the fuel tank of the motor vehicle. 

Proposed § 1.30C–1(b)(1)(i)(A); see also 

proposed § 1.30C–1(b)(16)(i). Similarly, 

‘‘recharging property’’ would mean 

property for the recharging of a motor 

vehicle propelled by electricity, but 

only if the property is located at the 

point where the motor vehicle is 

recharged. Proposed § 1.30C– 

1(b)(1)(i)(B); see also proposed § 1.30C– 

1(b)(16)(ii). 

Proposed § 1.30C–1(b)(14) would 

provide that components are 

‘‘functionally interdependent’’ if the 

placing in service of each component is 

dependent upon the placing in service 

of each of the other components in order 

to refuel or recharge a motor vehicle. 

Proposed § 1.30C–1(b)(15) would further 

provide that property is an ‘‘integral 

part’’ of a refueling or recharging 

property if it is used directly in the 

intended function of the refueling 

property or recharging property and is 

essential to the completeness of this 

intended function, meets all of the 

requirements for 30C property described 

in proposed § 1.30C–1(b)(1)(iii), is 

owned by the taxpayer that owns the 

refueling property or recharging 

property, and is specifically designed to 

be integrated with the refueling property 

or recharging property with which it is 

associated. 

Proposed § 1.30C–1(b)(1)(iii) would 

provide a list of additional requirements 

that any eligible property must meet to 

be 30C property. First, the property 

must either be of a character subject to 

an allowance for depreciation or 

installed on property that is used as the 

principal residence of the taxpayer 

(within the meaning of section 121). 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 76763 

Second, the property’s original use must 

begin with the taxpayer. Proposed 

§ 1.30C–1(b)(18) would provide that 

‘‘original use’’ has the same meaning as 

in § 1.48–2(b)(7). Finally, the property 

must be placed in service in an eligible 

census tract (see discussion of eligible 

census tracts in part II.E of this 

Explanation of Provisions section). 

II. General Rules 

A. Amount of Credit 

Proposed § 1.30C–2(a)(1) would 

provide that section 30C(a) allows a 

taxpayer to claim as a credit against the 

tax imposed by chapter 1 an amount 

equal to a percentage of the cost of any 

30C property placed in service by the 

taxpayer during the taxable year, subject 

to certain dollar-amount limitations 

described in section 30C(b) and 

proposed § 1.30C–2(a)(4). 

Consistent with section 30C(a), 

proposed § 1.30C–2(a)(2)(i) would 

provide that in the case of depreciable 

property, section 30C(a) allows as a 

credit against tax an amount equal to 6 

percent of the cost of any 30C property 

placed in service by the taxpayer during 

the taxable year. Under proposed 

§ 1.30C–2(a)(2)(ii), the section 30C 

credit for the cost of any 30C property 

placed in service as part of a project that 

meets the PWA requirements is 

multiplied by 5. Property placed in 

service by certain tax-exempt 

organizations and governmental units 

described in section 50(b)(3) and (4) of 

the Code is treated as property of a 

character subject to an allowance for 

depreciation for purposes of calculating 

the section 30C credit. See sections 

30C(e)(2) and 6417(d)(2) and § 1.6417– 

2(c). Proposed § 1.30C–2(a)(2)(iii) would 

provide that in the case of property of 

a character not subject to an allowance 

for depreciation, section 30C(a) allows 

as a credit against tax an amount equal 

30 percent of the cost of any 30C 

property placed in service by the 

taxpayer during the taxable year 

provided that such property is installed 

on property that is used as the 

taxpayer’s principal residence (within 

the meaning of section 121). Consistent 

with section 30C(b), proposed § 1.30C– 

2(a)(4) would limit the section 30C 

credit with respect to any single item of 

30C property placed in service by the 

taxpayer during the taxable year to 

$100,000 for depreciable property and 

$1,000 for non-depreciable property. 

If the business use of the property is 

50 percent or less, proposed § 1.30C– 

2(a)(3) would provide rules for 

apportioning the section 30C credit 

between business use and personal use. 

If the business use is more than 50 

percent, then the section 30C credit 

would be treated under the proposed 

regulations only as a general business 

credit under section 30C(d)(1) (and 

subject to the $100,000 limitation). If the 

business use of the 30C property is 50 

percent or less, then the property would 

be considered ‘‘apportioned-use 

property’’ under the proposed 

regulations and the taxpayer’s section 

30C credit for that taxable year for that 

30C property would be apportioned in 

accordance with the taxpayer’s use of 

the property between the general 

business credit under section 30C(d)(1) 

and the personal credit allowed under 

section 30C(a) pursuant to section 

30C(d)(2). To be within these 

apportionment rules, the proposed 

regulations would provide that the 30C 

property must be installed at the 

taxpayer’s personal residence to qualify 

for the personal credit, but also be used 

for business use. For example, these 

proposed rules would apply to a 

taxpayer who operates a delivery service 

and installs an electric vehicle charger 

at her personal residence, which she 

uses to charge both her personal vehicle 

and her delivery vehicle. 

If 30C property is apportioned-use 

property, proposed § 1.30C–2(a)(4)(ii) 

would provide that the dollar-amount 

limitation must be apportioned in the 

same manner as the taxpayer’s credit 

under section 30C. For example, in the 

case of 30C property the business use of 

which is 40 percent of a taxpayer’s total 

use of the property for the taxable year 

in which the property is placed in 

service, the portion treated as a general 

business credit under section 30C(d)(1) 

cannot exceed $40,000 ($100,000 

multiplied by 40 percent), and the 

portion treated as a section 30C credit 

allowed under section 30C(a) cannot 

exceed $600 ($1,000 multiplied by 60 

percent). 

B. Single Item of Property and 

Calculating the Section 30C Credit 

As discussed in part II of the 

Background section of this preamble, 

one major change that the IRA made to 

section 30C was to allow the credit per 

single item of property, rather than per 

location. Thus, proposed § 1.30C–2(b)(1) 

would provide that taxpayers may claim 

a section 30C credit if they place in 

service at least one single item of 30C 

property during the taxable year. 

Section 30C does not define ‘‘single 

item of property.’’ In Notice 2022–56, 

the Treasury Department and the IRS 

asked for comments on how to define a 

‘‘single item of property.’’ Many 

commenters suggested that, for purposes 

of electric vehicle chargers, a ‘‘single 

item’’ should be defined as each 

charging port and that the item also 

should include functionally 

interdependent property as well as other 

property that commenters deemed 

necessary for the installation and use of 

the charger. The proposed regulations 

largely adopt these comments. 

1. Definition of Single Item of 30C 

Property 

For purposes of calculating the 

section 30C credit, proposed § 1.30C– 

2(b)(1) would define a single item of 

30C property as each charging port for 

recharging property, each fuel dispenser 

for refueling property, or each qualified 

alternative fuel storage property or 

electrical energy storage property. 

For purposes of the proposed 

regulations, a charging port would mean 

the system within a charger that charges 

one motor vehicle. Under proposed 

§ 1.30C–1(b)(6), a charging port may 

have multiple connectors, but it can 

provide power at its rated electrical 

output to charge only one motor vehicle 

through one connector at a time. Some 

chargers may have more than one port, 

in which case proposed § 1.30C– 

2(b)(2)(ii) would provide that the cost of 

the charger would need to be allocated 

among the number of ports for purposes 

of determining the credit. The Treasury 

Department and the IRS agree with the 

commenters that allowing the credit 

based on the number of motor vehicles 

that could be charged simultaneously at 

the port’s rated electrical output is 

appropriate based on the IRA 

amendments to section 30C to provide 

a credit limit per single item of 

property, rather than a broader term 

such as per charging property or per 

location, and consistent with one 

purpose of the IRA to expand incentives 

for taxpayers to transition to clean 

vehicles. 

The proposed regulations would 

define a fuel dispenser as the unit 

through which fuel is dispensed into the 

fuel tank of a motor vehicle if such unit 

is capable of fueling at or above the 

dispenser’s minimum rate of fueling and 

has at least one hose and nozzle. 

Proposed § 1.30C–1(b)(12) would 

provide that a dispenser may optionally 

include a meter, valve, controller, and 

enclosure. These proposed regulations 

would use these definitions of ‘‘fuel 

dispenser’’ for refueling property and 

‘‘charging port’’ for recharging property 

with the goal to similarly situate the 

accounting of credits among the eligible 

alternative fuels with consideration of 

their refueling technologies and station 

designs. 

Proposed § 1.30C–1(b)(25) would 

define two types of storage property: 

qualified alternative fuel storage 


lotter on DSK11XQN23PROD with PROPOSALS1
76764 Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 

2On November 22, 2023, the Treasury 

Department and the IRS published in the Federal 

Register (88 FR 82188) the proposed rule 

‘‘Definition of Energy Property and Rules 

Applicable to the Energy Credit’’ under section 48 

(section 48 proposed regulations). 

property and electrical energy storage 

property. Under proposed § 1.30C– 

1(b)(25)(ii), ‘‘qualified alternative fuel 

storage property’’ would mean property 

used for the storage of such qualified 

alternative fuel. Under proposed 

§ 1.30C–1(b)(20), qualified alternative 

fuel would generally refer to all cleanburning fuels (as defined in proposed 

§ 1.30C–1(b)(7)) except electricity. 

Proposed § 1.30C–1(b)(25)(iii) would 

define ‘‘electrical energy storage 

property’’ to mean property that 

receives, stores, and delivers energy for 

conversion to electricity. Under 

proposed § 1.30C–1(b)(25), both types of 

storage property would be required to be 

located at the point where the motor 

vehicle is refueled or recharged. 

Proposed § 1.30C–1(b)(16) would 

provide that this requirement is 

generally satisfied if the storage 

property is located at the same or an 

immediately adjacent physical address 

as the location where the fuel is 

delivered into the fuel tank of the motor 

vehicle or where the motor vehicle is 

recharged. 

Former section 179A(d)(3)(A), 

adopted by reference into section 

30C(c), uses the language ‘‘for the 

storage or dispensing of a clean-burning 

fuel into the fuel tank of a motor vehicle 

propelled by such fuel’’ in its definition 

of qualified clean-fuel vehicle refueling 

property, indicating that clean-burning 

fuel storage property is a separate item 

of qualified clean-fuel vehicle refueling 

property. Former section 179A(d)(3)(B) 

uses the language ‘‘for the recharging of 

motor vehicles propelled by electricity’’ 

as a separate prong of this same 

definition, indicating that electrical 

energy storage property is not a separate 

item of qualified clean-fuel vehicle 

refueling property. However, former 

section 179A(e)(1) includes electricity 

within the definition of clean-burning 

fuels, such that electric vehicle refueling 

property could be eligible property 

under either former section 

179A(d)(3)(A) (where storage is 

specifically mentioned) or (B) (where 

storage is not specifically mentioned). 

These proposed regulations would 

provide that the cost of electrical energy 

storage property that is used for 

charging motor vehicles is creditable as 

a separate item of property under 

section 30C. Electrical energy storage 

can be used for electric vehicle charging 

to smooth costs and to minimize the 

impact on the electrical grid by taking 

the energy from the grid during nonpeak hours when energy is cheaper and 

storing the energy for use during higher 

cost peak hours. Thus, electrical energy 

storage can be a critical part of electric 

vehicle recharging infrastructure. 

Further, treating all types of storage as 

a separate item of property is consistent 

with the language of former section 

179A(d). Finally, allowing electrical 

energy storage property as a separate 

item of property treats storage property 

consistently across various types of 

clean-burning fuel. 

These proposed regulations would 

also modify proposed §§ 1.48–9 and 

1.48E–2 to provide that energy storage 

technology does not include energy 

storage property for which the taxpayer 

claims a credit under section 30C. 

Energy storage technology may be 

eligible for an investment credit under 

sections 48 and 48E, subject to certain 

limitations. However, sections 48 and 

48E exclude from the definition of 

energy storage technology property 

primarily used in the transportation of 

goods or individuals and not for the 

production of electricity. See sections 

48(c)(6)(A) and 48E(c)(2). The section 48 

proposed regulations did not propose a 

rule interpreting this exclusion but 

requested comments on its scope.2

Commenters to the section 48 proposed 

regulations requested that batteries and 

other energy storage technology that 

may be used to charge or recharge 

electric vehicles be eligible for the 

section 48 credit because it may be more 

valuable than the section 30C credit in 

certain cases; however, commenters did 

not request that the same property be 

eligible for both sections 48 and 30C. 

The Treasury Department and the IRS 

agree that Congress did not intend to 

allow multiple credits for investments 

in the same energy storage property 

associated with vehicle recharging or 

refueling, as evidenced by the sections 

48 and 48E exclusion for property 

primarily used in the transportation of 

goods or individuals and not for the 

production of electricity. Property for 

which a section 30C credit is claimed is 

property primarily used in the 

transportation of goods or individuals 

and not for the production of electricity, 

because the section 30C credit is limited 

to property ‘‘for the storage or 

dispensing of a clean-burning fuel into 

the fuel tank of a motor vehicle 

propelled by such fuel’’ or ‘‘for the 

recharging of motor vehicles propelled 

by electricity.’’ See sections 30C(c)(1) 

and 179A(d)(3). Accordingly, the 

proposed regulations would clarify that 

energy storage property for which a 

section 30C credit is claimed is property 

primarily used in the transportation of 

goods or individuals and not for the 

production of electricity, and, therefore, 

is not energy storage technology for 

purposes of sections 48 and 48E. 

However, energy storage property for 

which a section 30C credit is not 

claimed, could be credit-eligible energy 

storage technology under sections 48 

and 48E if it meets the requirements 

under those provisions. 

2. Associated Property and Calculating 

the Credit 

Under proposed § 1.30C–2(b)(1), the 

amount of the section 30C credit would 

include the cost of functionally 

interdependent property and, if 

applicable, any property that is an 

integral part of refueling or recharging 

property that is part of the 30C property 

placed in service by the taxpayer during 

the year (associated property). These 

costs would be included in the section 

30C credit for a single item to the extent 

that they are directly attributable and 

traceable to that particular single item of 

30C property. The cost of associated 

property that is directly attributable and 

traceable to more than one item of 30C 

property would be allocated among the 

relevant items based on the cost of each 

single item of 30C property. In no case 

would the total cost of the associated 

property divided among different items 

of 30C property exceed 100 percent of 

the cost of the associated property. 

Proposed § 1.30C–2(b)(3) would 

provide that the section 30C credit is the 

lesser of the ‘‘tentative section 30C 

credit,’’ or the $100,000 or $1,000 limit 

(as appropriate). The tentative section 

30C credit for each single item of 30C 

property would be the sum of the cost 

of the single item of 30C property, the 

cost of any associated property directly 

attributable and traceable to the single 

item of 30C property, and the cost of a 

ratable share of allocated associated 

property, multiplied by the applicable 

credit rate (6 percent or 30 percent). 

C. Bidirectional Charging Equipment 

Notice 2022–56 requested comments 

on the factors and definitions that 

should be considered in developing 

guidance for bidirectional charging 

equipment (that is, property that is 

capable of charging the battery of an 

electric vehicle and also allows the 

discharging of electricity from such 

battery to an electric load external to 

such motor vehicle). See section 

30C(c)(2). Many of the comments 

suggested that the regulations provide 

that all costs, including any costs for 

bidirectional equipment contained 

within the motor vehicle (onboard 

equipment) be creditable. 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 76765 

The IRA amendments clarify that a 

charger that otherwise meets the 

requirements of 30C property is not 

excluded simply because the charger 

also allows discharging of electricity 

from the motor vehicle’s battery, but the 

IRA amendments do not expand the 

section 30C credit in the manner 

suggested by commenters. In particular, 

section 30C(c)(2) uses the language 

‘‘shall not fail to be treated,’’ suggesting 

a clarification rather than a significant 

expansion of the credit. In addition, the 

Code contains separate tax credits for 

electric vehicles, including credits 

targeted to the electric vehicle battery. 

See sections 25E, 30D, and 45W. Thus, 

proposed § 1.30C–1(b)(16)(ii) would 

exclude from the definition of 

recharging property components that are 

located within a motor vehicle and are 

necessary for the propulsion of that 

vehicle, including onboard equipment. 

D. Property for the Refueling of Certain 

Two- and Three-Wheeled Vehicles 

Section 30C(f) provides additional 

special rules for electric charging 

stations for certain vehicles with two or 

three wheels. Section 30C(f)(1) provides 

that the term ‘‘qualified alternative fuel 

vehicle refueling property’’ includes 

property described in section 30C(c) for 

the recharging of a motor vehicle 

described in section 30C(f)(2), but only 

if such property meets the requirements 

of section 30C(a)(2) and is of a character 

subject to depreciation. However, 

section 30C(a)(2) does not exist. The 

Treasury Department and the IRS view 

this as a clerical error and, as a result, 

will apply section 30C(f)(1) without 

giving effect to section 30C(f)(1)(A). 

Thus, proposed § 1.30C–2(b)(5) would 

provide that 30C property also includes 

depreciable property that is for the 

recharging of a two- or three-wheeled 

electric vehicle because there are no 

requirements of section 30C(a)(2) under 

current law. 

E. Eligible Census Tracts 

Consistent with section 30C(c)(3)(B), 

proposed § 1.30C–2(c)(1) would provide 

that 30C property must be placed in 

service in an eligible census tract to 

qualify for the section 30C credit. 

Eligible census tracts include any 

population census tract that qualifies as 

a low-income community census tract 

or that is a non-urban census tract. 

1. Low-Income Census Tracts 

Proposed § 1.30C–2(c)(2)(i) would 

provide that a population census tract is 

an eligible ‘‘low-income community 

census tract’’ for purposes of the section 

30C credit if the population census tract 

meets the requirements of the NMTC 

under section 45D(e)(1), which requires 

that the poverty rate for such tract is at 

least 20 percent, or in the case of a tract 

not located within a metropolitan area, 

the median family income for such tract 

does not exceed 80 percent of statewide 

median family income, or in the case of 

a tract located within a metropolitan 

area, the median family income for such 

tract does not exceed 80 percent of the 

greater of statewide median family 

income or the metropolitan area median 

family income. Proposed § 1.30C– 

2(c)(2)(ii) would provide that census 

tracts located within a high migration 

rural county, as defined under section 

45D(e)(5), are low-income community 

census tracts if the median family 

income for the tract does not exceed 85 

percent of statewide median family 

income. 

Based on the ACS 5-year low-income 

community data, census tracts as 

described under section 45D(e)(1) can 

be identified and they are published by 

the CDFI Fund. Additionally, the CDFI 

Fund has published, beginning with the 

2016–2020 NMTC tracts, the census 

tracts that qualify as low-income census 

tracts because the census tracts are 

located in high migration rural counties 

as described under section 45D(e)(5). 

However, after consultation with the 

CDFI Fund, the Treasury Department 

and the IRS cannot identify with 

verifiable accuracy the population 

census tracts that currently meet the 

requirements of section 45D(e)(2) and 

(4). Accordingly, the Treasury 

Department and the IRS request 

comments on whether and how the 

population census tracts named under 

section 45D(e)(2) and (4) could be 

identified accurately to qualify as 

eligible census tracts for the credit 

under 30C. The areas described in 

section 45D(e)(3) are not population 

census tracts as required by section 

30C(c)(3)(B)(i), and therefore do not 

qualify as eligible census tracts for 

purposes of the section 30C credit. 

2. Non-Urban Area 

Proposed § 1.30C–2(c)(3) would 

provide that ‘‘non-urban census tract’’ 

means any population census tract in 

which at least 10 percent of the census 

blocks are not designated as urban areas. 

As the Secretary of Commerce and 

Census Bureau no longer identify 

census tracts as urban or non-urban, the 

Treasury Department, in consultation 

with the Census Bureau, determined a 

percentage of census blocks within a 

census tract to determine if a census 

tract is not an urban area under section 

30C(c)(3)(B)(ii). The Treasury 

Department and IRS received comments 

on this issue in response to Notice 

2022–56. The threshold of 10 percent of 

census blocks being not an urban area 

to determine if a census tract is a nonurban area census tract is within the 

range of percentages suggested by 

commenters. 

3. Determination of Eligible Census 

Tracts 

Proposed § 1.30C–2(c)(4) would 

provide that the IRS will periodically 

publish lists of specific census tracts 

that are low-income census tracts or 

non-urban census tracts along with 

instructions on how taxpayers may 

determine their census tract identifying 

numbers. Census tract data and 

boundaries are expected to be updated 

prior to January 1, 2033, when the 

section 30C credit is planned to expire. 

When census tract data changes, the IRS 

will publish updated lists of the eligible 

census tracts that qualify as low-income 

communities or non-urban areas, and 

the 11-digit census tract GEOIDs 

associated with each census tract based 

on the applicable census data. 

4. Request for Comments 

There is a variety of equipment 

available to recharge electric vehicles. 

Some are installed at a fixed location 

(that is, stationary) and may be mounted 

upon concrete pads or installed as 

fixtures on the walls of buildings. Some 

recharging equipment are mobile; 

however, the degree to which such 

equipment are mobile varies greatly 

depending on their use and purpose. 

Mobile chargers may be transported to 

allow for the dispensing of electricity 

closer to where a vehicle is parked, in 

contrast to having to drive a vehicle to 

stationary equipment. Mobile chargers 

may be physically connected to a source 

of electricity at a physical address or, 

conversely, receive electricity from a 

battery that is temporarily separated 

from a physical address. 

The requirement under section 

30C(c)(3) that property must be placed 

in service in an eligible census tract to 

qualify for the section 30C credit 

suggests that the property must also be 

used in the eligible census tract. 

However, depending on its design and 

purpose, mobile equipment may not 

always be used in the eligible census 

tract in which it was placed in service. 

The Treasury Department and the IRS 

request comments on how mobile 

equipment could satisfy the geographic 

requirement that 30C property must be 

placed in service in an eligible census 

tract, and request comments on any 

related rules that should be adopted, 

particularly with respect to any 

administrative requirements to ensure 


lotter on DSK11XQN23PROD with PROPOSALS1
76766 Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 

only qualifying mobile equipment is 

credited. 

III. Prevailing Wage and Registered 

Apprenticeship Requirements 

The proposed regulations would 

supplement the final PWA regulations 

in § 1.30C–3 to further define ‘‘qualified 

alternative fuel vehicle refueling 

project’’ (30C project) for purposes of 

satisfying the PWA requirements. 

Proposed § 1.30C–3(b)(2) would provide 

that multiple 30C properties will be 

treated as a single 30C project if the 

items of property are constructed and 

operated on a contiguous piece of land, 

owned by a single taxpayer (subject to 

the related party rule), placed in service 

in a single taxable year, and one or more 

of the following factors is present: (1) 

the properties are described in one or 

more common environmental or other 

regulatory permits; (2) the properties are 

constructed pursuant to a single master 

construction contract; or (3) the 

construction of the properties is 

financed pursuant to the same loan 

agreement. Under the related party rule 

in proposed § 1.30C–3(b)(3), related 

taxpayers are treated as one taxpayer in 

determining whether multiple items of 

30C property are treated as a single 

project. For these purposes, related 

taxpayers are treated as a single 

taxpayer if they are members of a group 

of trades or businesses that are under 

common control (as defined in § 1.52– 

1(b)). Proposed § 1.30C–3(b)(3). 

The proposed regulations would limit 

a 30C project to encompass only the 

items of property that are placed in 

service within the same year because 

30C is an annual credit. This approach 

is consistent with the fact that the 

section 30C credit is available only in 

the year the property is placed in 

service, even if costs related to the 

property are incurred in earlier years. 

Additionally, the proposed 

regulations would clarify that if a seller 

of 30C property, the use of which is 

described in section 50(b)(3) or (4) 

(generally tax-exempt entities, 

government entities, and foreign 

persons and entities), is treated as the 

taxpayer that placed such property in 

service under section 30C(e)(2), the 

seller is the taxpayer required to comply 

with the PWA recordkeeping 

requirements. Proposed § 1.30C–3(c). 

See part IV.B of this Explanation of 

Provisions for additional discussion of 

cases in which a seller may be treated 

as the taxpayer that placed 30C property 

in service under section 30C(e)(2). This 

clarification is consistent with § 1.45– 

12, which provides that a taxpayer 

claiming or transferring (under section 

6418) an increased credit must maintain 

and preserve records sufficient to 

establish compliance with the statutory 

requirements. Further, unlike a 

transferee under section 6418, a person 

who sells 30C property, the use of 

which is described in section 50(b)(3) or 

(4), would generally have access to, and 

control over, the relevant records. 

The proposed regulations would also 

conform the terminology used in the 

final PWA regulations in § 1.30C–3(a) 

and (b) to the terminology used in these 

proposed regulations. The proposed 

regulations do not modify any of the 

rules in the final PWA regulations other 

than proposed § 1.30C–3, and the 

Treasury Department and the IRS are 

not reopening the comment period on 

the final PWA regulations generally. 

IV. Special Rules 

A. Recapture 

Section 30C(e)(5) provides that 

recapture rules similar to the rules of 

former section 179A(e)(4) apply; 

however, former section 179A(e)(4) 

merely granted authority to provide 

recapture rules, stating, ‘‘The Secretary 

shall, by regulations, provide for 

recapturing the benefit of any deduction 

allowable under subsection (a) with 

respect to any property which ceases to 

be property eligible for such 

deduction.’’ Accordingly, as noted 

previously in the Authority section, the 

Treasury Department and the IRS 

understand section 30C(e)(5) to be a 

delegation of authority to the Secretary, 

by cross-reference to former section 

179A(e)(4), to provide recapture rules 

under section 30C. 

The Secretary exercised the authority 

under former section 179A(e)(4) in 

issuing former § 1.179A–1 (removed by 

TD 9849 on March 11, 2019). Proposed 

§ 1.30C–4(b) uses the rules of former 

§ 1.179A–1 as a starting point (in 

particular, what constitutes a recapture 

event), with appropriate modifications 

(for example, to account for apportioned 

use property and property used by taxexempt or government entities, neither 

of which were at issue in former section 

179A or the regulations thereunder). In 

general, proposed § 1.30C–4(b) would 

require taxpayers to recapture the 

benefit of any section 30C credit 

allowed with respect to any property 

that ceases to be property eligible for 

such credit. If a recapture event occurs 

with respect to a taxpayer’s 30C 

property, then the taxpayer must 

include the recapture amount in taxable 

income for the taxable year in which the 

recapture event occurs. Proposed 

§ 1.30C–4(b)(1). 

Proposed § 1.30C–4(b)(2) would 

provide that a recapture event generally 

occurs if, within three years of the 

property being placed in service: (1) the 

taxpayer claiming the section 30C credit 

modifies the property such that the 

property no longer qualifies as 30C 

property; (2) unless the property is 

subject to section 6417(d)(2)(B), a 

depreciable property ceases to be used 

predominantly in a trade or business 

(meaning that 50 percent or more of the 

use of the property in a taxable year is 

for use other than in a trade or 

business); (3) if the property is 

apportioned-use property, the property 

completely ceases to be used in a trade 

or business, but continues to be used for 

personal use; or (4) the taxpayer sells or 

disposes of the 30C property and the 

taxpayer knows or has reason to know 

that the property will cease to qualify as 

30C property for one of the reasons 

listed in (1) or (2) of this paragraph. 

Except as provided in (4), a sale or other 

disposition (including a disposition by 

reason of an accident or other casualty) 

of 30C property is not a recapture event. 

Proposed § 1.30C–4(b)(3) would clarify 

that property is not subject to the 

recapture provisions solely because it is 

placed in service in a location that 

subsequently ceases to be in a qualified 

census tract. Thus, a change in the 

identification of eligible census tracts 

alone would not require a taxpayer to 

recapture the section 30C credit. 

Proposed § 1.30C–4(b) would also 

provide a formula for determining the 

amount of the recapture and 

adjustments to basis following a 

recapture event. 

The Treasury Department and the IRS 

request comments on how the recapture 

rules should apply where the person 

who sells 30C property to a tax-exempt 

or government entity is treated as the 

taxpayer placing the 30C property in 

service, including any notifications that 

should be required. 

B. Property Used by a Tax-Exempt or 

Government Entity 

Section 30C(e)(2) allows a person who 

sells 30C property that is used in a 

manner described in section 50(b)(3) or 

(4) (generally property used by taxexempt organizations, government 

entities, or foreign persons or entities), 

to be eligible for the section 30C credit, 

but only if the seller clearly discloses in 

a document the amount of any such 

credit allowable. Use of this rule 

typically results in a lower upfront cost 

to a tax-exempt or government entity for 

the 30C property, while allowing the 

seller to claim the section 30C credit. 

Section 6417, added by the IRA, 

provides a benefit to applicable entities 

(defined in section 6417(d)(1)(A) and 

§ 1.6417–1(c)), which include certain 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 76767 

3Section 50(b) provides that no credit ‘‘shall be 

determined under this subpart’’ for certain 

property. Section 50(b) is in subpart E of part IV of 

subchapter A of chapter 1. Section 30C is in subpart 

B of part IV of subchapter A of chapter 1. 

tax-exempt and government entities that 

are described in section 50(b)(3) or (4). 

Section 6417 allows applicable entities 

to make an election to be treated as 

making a payment of tax in the amount 

of certain applicable credits, including 

the section 30C credit, which results in 

a refund equal to the amount of the 

applicable credits if such entity has no 

other tax liability. Section 6417(d)(2)(A) 

requires an entity making an election to 

determine an applicable credit without 

regard to section 50(b)(3) or (b)(4)(A)(i), 

effectively turning those sections off for 

purposes of calculating an applicable 

credit. Although section 30C refers to 

section 50(b)(3) and (4) in section 

30C(e)(2) to describe property used in a 

certain manner by certain persons, the 

section 30C credit is always determined 

without regard to section 50.3 However, 

for 30C property used by tax-exempt 

and government entities (that is, 

property the use of which is described 

in section 50(b)(3) or (4)), these 

proposed regulations would treat such 

30C property as not being used in a 

manner described in section 50(b)(3) or 

(4) if the tax-exempt or government 

entity makes an elective payment 

election under section 6417. 

Congress appears to have provided 

tax-exempt and government entities the 

ability to choose whether a reduced 

purchase price that may result under 

section 30C(e)(2) or an elective payment 

election under section 6417 is more 

beneficial. To facilitate that choice, and 

consistent with section 6417(d)(2)(A), 

proposed § 1.30C–4(c)(2) would treat the 

use of 30C property by a tax-exempt or 

government entity as not being 

described in section 50(b)(3) or (4), and 

therefore not available for the seller to 

be treated as the taxpayer placing the 

30C property in service, if such entity 

notifies the seller in writing of its intent 

to make the section 6417 election. 

The section 30C credit is only allowed 

once per 30C property. Thus, if the taxexempt or government entity notifies 

the seller of its intent to make an 

elective payment election pursuant to 

section 6417(a) with respect to the 

section 30C credit, the seller cannot 

claim any credit allowable under 

section 30C(a) with respect to such 

property. 

The Treasury Department and the IRS 

request comments on whether this 

approach is practical for entities 

described in section 50(b)(3) and 

(b)(4)(A)(i) and for those who sell them 

30C property. The Treasury Department 

and the IRS also request comments on 

the notification process described 

above, including the timing of such 

notifications and whether transition 

rules may be necessary for projects for 

which contracts have already been 

signed. 

C. Dual-Use Property 

Notice 2007–43 provided rules for the 

application of the section 30C credit to 

dual-use property, generally meaning 

property that is used for a creditable 

purpose and a non-creditable purpose. 

The proposed regulations would 

generally incorporate the dual-use rules 

from the notice, with some 

modifications to account for subsequent 

amendments to section 30C (such as the 

inclusion of transportation fuel as 

defined in section 45Z(d)(5)). 

Proposed § 1.30C–4(d) would provide 

separate rules for (1) dual-use property 

that is used for dispensing or storing 

both qualified alternative fuel and 

conventional fuel, (2) dual-use property 

that is used to store qualified alternative 

fuel that is dispensed into the fuel tank 

of a motor vehicle and to store fuel that 

is transported to other locations, and (3) 

dual-use property that is used to store 

or transmit electricity for recharging a 

motor vehicle and for other, noncreditable, purposes. In each case, the 

creditable portion of the cost of such 

property is limited to the increase in the 

cost of the dual-use property over the 

cost of equivalent property used only for 

the non-creditable use. For example, if 

a taxpayer owns a fuel tank that is used 

to store fuel that is used to refuel motor 

vehicles at the point where the motor 

vehicles are refueled, but is also used to 

store fuel that the taxpayer transports to 

other locations, then the cost of the fuel 

tank is taken into account only to the 

extent the cost exceeds the cost of a tank 

used only to store fuel transported to 

other locations. The Treasury 

Department and the IRS are aware that 

in some cases, this will result in the 

dual-use property’s cost not being 

creditable under section 30C. However, 

the Treasury Department and the IRS 

are of the view that Notice 2007–43 has 

provided a workable and administrable 

rule for most of the existence of the 

section 30C credit to date. 

V. Proposed Amendments to 

Regulations Under Other Code Sections 

The proposed regulations would also 

make minor conforming changes to 

proposed §§ 1.48–9 and 1.48E–2, as well 

as to §§ 1.6417–6 and 1.6418–5 to 

comport with the proposed section 30C 

regulations. 

Effect on Other Documents 

Notice 2007–43, 2007–22 I.R.B. 1318, 

is withdrawn. 

Proposed Applicability Dates 

Except as otherwise provided, these 

regulations are proposed to apply to 

property placed in service in taxable 

years ending after the date of 

publication of the Treasury Decision 

adopting these rules as final rules in the 

Federal Register. 

Special Analyses 

I. Regulatory Planning and Review 

Pursuant to the Memorandum of 

Agreement, Review of Treasury 

Regulations under Executive Order 

12866 (June 9, 2023), tax regulatory 

actions issued by the IRS are not subject 

to the requirements of section 6 of 

Executive Order 12866, as amended. 

Therefore, a regulatory impact 

assessment is not required. 

II. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3520) (PRA) generally 

requires that a Federal agency obtain the 

approval of the Office of Management 

and Budget (OMB) before collecting 

information from the public, whether 

such collection of information is 

mandatory, voluntary, or required to 

obtain or retain a benefit. A Federal 

agency may not conduct or sponsor, and 

a person is not required to respond to, 

a collection of information unless it 

displays a valid control number 

assigned by the OMB. 

The collections of information in 

these proposed regulations contain 

reporting and recordkeeping 

requirements. The recordkeeping 

requirements mentioned within these 

proposed regulations are considered 

general tax records under § 1.6001–1(e). 

These records are required for the IRS 

to validate that taxpayers have met the 

regulatory requirements and are entitled 

to a credit under section 30C. For PRA 

purposes, general tax records are 

already approved by OMB under 1545– 

0047 for tax-exempt organizations and 

government entities; 1545–0074 for 

individuals; and under 1545–0123 for 

business entities. 

These proposed regulations mention 

requirements to claim the credit in 

§ 1.30C–2(e), using Form 8911, 

Alternative Fuel Vehicle Refueling 

Property Credit (or successor form as the 

Secretary prescribes). This form is 

approved under 1545–0047 for taxexempt organizations and governmental 

entities; 1545–0074 for individuals; and 

1545–0123 for business entities. These 

proposed regulations are not changing 


lotter on DSK11XQN23PROD with PROPOSALS1
76768 Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 

or creating new collection requirements 

not already approved by OMB. These 

proposed regulations also mention 

recapture procedures as detailed in 

§ 1.30C–4(b). These recapture 

procedures are also performed using 

Form 8911, Alternative Fuel Vehicle 

Refueling Property Credit (or successor 

form as the Secretary prescribes). This 

form is approved under 1545–0047 for 

tax-exempt organizations and 

governmental entities; 1545–0074 for 

individuals; and 1545–0123 for business 

entities. These proposed regulations are 

not changing or creating new collection 

requirements not already approved by 

OMB. 

These proposed regulations also 

include third-party disclosures if a taxexempt or government entity makes an 

election under section 6417 to be treated 

as making a payment against the tax. 

This third-party disclosure and its 

associated burden will be included in 

form and instructions for Form 8911 (or 

successor form as the Secretary 

prescribes) and will be submitted to 

OMB under 1545–0047, 1545–0074, and 

1545–0123 in accordance with the PRA 

procedures under 5 CFR 1320.10. 

With respect to the PWA provisions 

in § 1.30C–3, these requirements are 

approved under 1545–2315. With 

respect to the elective pay provisions in 

§ 1.30C–4(c)(2), there is no form 

associated with this collection, but will 

be collected in the portal only and is 

approved under 1545–2310. These 

proposed regulations are not changing 

or creating new collection requirements 

not already approved by OMB. 

III. Regulatory Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) (RFA) imposes 

certain requirements with respect to 

Federal rules that are subject to the 

notice and comment requirements of 

section 553(b) of the Administrative 

Procedure Act (5 U.S.C. 551 et seq.) and 

that are likely to have a significant 

economic impact on a substantial 

number of small entities. Unless an 

agency determines that a proposal is not 

likely to have a significant economic 

impact on a substantial number of small 

entities, section 603 of the RFA requires 

the agency to present an initial 

regulatory flexibility analysis (IRFA) of 

the proposed rule. 

Pursuant to the RFA, the Secretary 

hereby certifies that these proposed 

regulations will not have a significant 

economic impact on a substantial 

number of small entities within the 

meaning of section 601(6) of the 

Regulatory Flexibility Act. Pursuant to 

section 7805(f), this notice of proposed 

rulemaking has been submitted to the 

Chief Counsel for the Office of 

Advocacy of the Small Business 

Administration for comment on their 

impact on small business. 

The RFA directs agencies to provide 

a description of and, if feasible, an 

estimate of, the number of small entities 

that may be affected by the proposed 

rules, if adopted. Section 30C and these 

proposed regulations may affect a 

variety of different entities across 

multiple industries, including 

individuals, tax-exempt entities, small 

businesses, partnerships, and large 

businesses. Although there is 

uncertainty as to the exact number of 

small businesses within this group, the 

current estimated number of 

respondents to these proposed rules is 

4,000 small business entities, based on 

a review of filing information since 2019 

and extrapolations into the future. 

Small business entities to claim the 

section 30C credit must satisfy reporting 

requirements that are the same as those 

faced by individuals accessing the 

section 30C credit. Taxpayers will 

continue to file Form 8911, Alternative 

Fuel Vehicle Refueling Property Credit 

(or successor form as the Secretary 

prescribes), as was the case for the 

section 30C credit prior to amendments 

made by the IRA and prior to the 

publication of these proposed 

regulations. The estimated burden for 

individual and business taxpayers filing 

this form is approved under OMB 

control number 1545–0074 and 1545– 

0123. 

Although the Treasury Department 

and IRS estimate that 4,000 small 

business entities will claim the credit 

under section 30C in a given year, the 

proposed regulations will not have a 

significant economic impact on such 

entities. The proposed regulations do 

not impose any additional burden on 

taxpayers outside of what is provided by 

the statute. For example, the IRA 

modified section 30C(c)(3) to require 

property to be located in eligible census 

tracts. These proposed regulations 

provide guidance regarding low-income 

areas, non-urban areas, and the 

determination of eligible census tracts, 

but do not impose any additional 

requirements beyond what is set forth in 

the statute that would give rise to 

significant economic impacts on small 

business entities. Additionally, these 

proposed regulations provide rules 

regarding recapture of the credit, but 

recapture is provided for in section 

30C(e)(5), and these proposed rules 

merely provide the framework for the 

statutorily required recapture. 

The Treasury Department and IRS 

have determined that the continued 

requirement to file a Form 8911, 

Alternative Fuel Vehicle Refueling 

Property Credit (or successor form as the 

Secretary prescribes), is unlikely to 

involve significant administrative costs 

beyond what was previously required. 

Accordingly, the Secretary certifies 

that these proposed regulations will not 

have a significant economic impact on 

a substantial number of small entities. 

The Treasury Department and the IRS 

request comments that provide data, 

other evidence, or models that provide 

insight on this issue. 

IV. Unfunded Mandates Reform Act 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 requires 

that agencies assess anticipated costs 

and benefits and take certain other 

actions before issuing a final rule that 

includes any Federal mandate that may 

result in expenditures in any one year 

by a State, local, or Tribal government, 

in the aggregate, or by the private sector, 

of $100 million in 1995 dollars, updated 

annually for inflation. This proposed 

rule does not include any Federal 

mandate that may result in expenditures 

by State, local, or Tribal governments, or 

by the private sector in excess of that 

threshold. 

V. Executive Order 13132: Federalism 

Executive Order 13132 (Federalism) 

prohibits an agency (to the extent 

practicable and permitted by law) from 

promulgating any regulation that has 

federalism implications, unless the 

agency meets the consultation and 

funding requirements of section 6 of the 

Executive order, if the rule either 

imposes substantial, direct compliance 

costs on State and local governments, 

and is not required by statute, or 

preempts State law. This proposed rule 

does not have federalism implications 

and does not impose substantial direct 

compliance costs on State and local 

governments or preempt State law 

within the meaning of the Executive 

order. 

Comments and Requests for a Public 

Hearing 

Before these proposed regulations are 

adopted as final regulations, 

consideration will be given to any 

comments that are submitted timely to 

the IRS as prescribed in this preamble 

under the ADDRESSES heading. 

The Treasury Department and the IRS 

request comments on all aspects of the 

proposed regulations. Any comments 

submitted will be made available at 

https://www.regulations.gov or upon 

request. 

A public hearing will be scheduled if 

requested in writing by any person who 

timely submits electronic or written 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 76769 

comments. Requests for a public hearing 

are also encouraged to be made 

electronically. If a public hearing is 

scheduled, notice of the date and time 

for the public hearing will be published 

in the Federal Register. 

Statement of Availability of IRS 

Documents 

The IRS Revenue Procedures, Notices, 

and other guidance cited in this 

preamble are published in the Internal 

Revenue Bulletin and is available from 

the Superintendent of Documents, U.S. 

Government Publishing Office, 

Washington, DC 20402, or by visiting 

the IRS website at https://www.irs.gov. 

Drafting Information 

The principal author of the proposed 

regulations is the Office of Associate 

Chief Counsel (Passthroughs & Special 

Industries). However, other personnel 

from the Treasury Department and the 

IRS participated in the development of 

the proposed regulations. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Proposed Amendments to the 

Regulations 

Accordingly, the Treasury Department 

and the IRS propose to amend 26 CFR 

part 1 as follows: 

PART 1—Income Taxes 

■ Paragraph 1. The authority citation 

for part 1 is amended by: 

■ 1. Adding entries for §§ 1.30C–1 and 

1.30C–2 in numerical order; 

■ 2. Revising the entry for § 1.30C–3; 

and 

■ 3. Adding entries for §§ 1.30C–4, 

1.48–9(e)(10), and 1.48E–2(g)(6) in 

numerical order. 

The additions and revisions read in 

part as follows: 

Authority: 26 U.S.C. 7805 * * * 

* * * * * 

Section 1.30C–1 also issued under 26 

U.S.C. 30C(h). 

Section 1.30C–2 also issued under 26 

U.S.C. 30C(h). 

Section 1.30C–3 also issued under 26 

U.S.C. 30C(g)(4) and (h). 

Section 1.30C–4 also issued under 26 

U.S.C. 30C(e)(5) and (h). 

* * * * * 

Section 1.48–9(e)(10) also issued under 26 

U.S.C. 48(a)(16). 

* * * * * 

Section 1.48E–2(g)(6) also issued under 26 

U.S.C. 48E(i). 

* * * * * 

■ Par. 2. Sections 1.30C–0 through 

1.30C–2 are added to read as follows: 

* * * * * 

1.30C–0 Table of contents. 

1.30C–1 Credit for alternative fuel 

vehicle refueling property; 

Definitions. 

1.30C–2 General rules. 

* * * * * 

§ 1.30C–0 Table of contents. 

This section lists the captions 

contained in §§ 1.30C–1 through 1.30C– 

4. 

§ 1.30C–1 Credit for alternative fuel vehicle 

refueling property; Definitions. 

(a) In general. 

(b) Definitions. 

(1) 30C property. 

(i) Applicable property. 

(ii) Property integral to refueling property 

or recharging property. 

(iii) Other requirements. 

(2) 45Z transportation fuel. 

(3) Building and structural components. 

(4) Census block. 

(5) Charger. 

(6) Charging port. 

(7) Clean burning fuel. 

(8) Connector. 

(9) Conventional fuel. 

(10) Conventional refueling property. 

(11) Electric vehicle. 

(12) Fuel dispenser. 

(13) Fuel tank. 

(14) Functionally interdependent. 

(15) Integral part. 

(16) Located at the point. 

(i) Refueling property. 

(ii) Recharging property. 

(17) Motor vehicle. 

(i) In general. 

(ii) 2 or 3-wheeled motor vehicle. 

(18) Original use. 

(19) Population census tract. 

(20) Qualified alternative fuel. 

(21) Qualifying biodiesel mixture. 

(22) Section 30C credit. 

(23) Section 30C regulations. 

(24) Statutory references. 

(i) Chapter 1. 

(ii) Code. 

(25) Storage property. 

(i) In general. 

(ii) Qualified alternative fuel storage 

property. 

(iii) Electrical energy storage property. 

(c) Applicability date. 

§ 1.30C–2 General rules. 

(a) Amount of credit. 

(1) In general. 

(2) Applicable percentages. 

(i) Property of a character subject to an 

allowance for depreciation. 

(ii) Projects meeting the prevailing wage 

and apprenticeship requirements. 

(iii) Property not subject to an allowance 

for depreciation. 

(3) Apportionment of section 30C credit 

between business and personal use. 

(i) Business use portion. 

(ii) Personal use portion. 

(4) Dollar-amount limitations. 

(i) In general. 

(ii) Apportioned-use property. 

(b) 30C property rules. 

(1) Single item of 30C property. 

(2) Associated property. 

(3) Calculating the section 30C credit. 

(4) Special rule for bidirectional charging 

equipment. 

(5) Property for the refueling of certain 

two- and three-wheeled motor vehicles. 

(6) Placed in service. 

(i) Depreciable property. 

(ii) Non-depreciable property. 

(c) Eligible census tracts. 

(1) Geographic requirement. 

(2) Low-income community census tract. 

(i) In general. 

(ii) Modification for high migration rural 

counties. 

(3) Non-urban census tract. 

(4) Determination of eligibility of specific 

census tracts. 

(d) Reduction in basis. 

(e) Examples. 

(1) Example 1. 

(i) Facts. 

(ii) Analysis. 

(A) 30C property. 

(B) Calculation of the credit. 

(2) Example 2. 

(i) Facts. 

(ii) Analysis. 

(3) Example 3. 

(i) Facts. 

(ii) Analysis. 

(4) Example 4. 

(i) Facts. 

(ii) Analysis. 

(A) 30C property. 

(B) Calculation of the credit. 

(5) Example 5. 

(i) Facts. 

(ii) Analysis. 

(A) 30C property. 

(B) Calculation of the credit. 

(6) Example 6. 

(i) Facts. 

(ii) Analysis. 

(7) Example 7. 

(i) Facts. 

(ii) Analysis. 

(A) 30C property. 

(B) Calculation of the credit. 

(8) Example 8. 

(i) Facts. 

(ii) Analysis. 

(9) Example 9. 

(i) Facts. 

(ii) Analysis. 

(A) 30C property. 

(B) Calculation of the credit. 

(10) Example 10. 

(i) Facts. 

(ii) Analysis. 

(A) 30C property. 

(B) Calculation of the credit. 

(11) Example 11. 

(i) Facts. 

(ii) Analysis. 

(12) Example 12. 

(i) Facts. 

(ii) Analysis. 

(A) 30C property. 

(B) Calculation of the credit. 

(13) Example 13. 

(i) Facts. 

(ii) Analysis. 

(A) 30C property. 

(B) Calculation of the credit. 

(14) Example 14. 


lotter on DSK11XQN23PROD with PROPOSALS1
76770 Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 

(i) Facts. 

(ii) Analysis. 

(A) 30C property. 

(B) Calculation of the credit. 

(15) Example 15. 

(i) Facts. 

(ii) Analysis. 

(f) Claim requirements. 

(g) Applicability date. 

§ 1.30C–3 Rules relating to the increased 

credit amount for prevailing wage and 

apprenticeship. 

(a) In general. 

(b) 30C project requirements. 

(1) In general. 

(2) Determination of a project. 

(3) Related taxpayers. 

(i) Definition. 

(ii) Related taxpayer rule. 

(c) Coordination with 30C(e)(2) and 

§ 1.30C–4(c). 

(d) Examples. 

(1) Example 1. 

(i) Facts. 

(ii) Analysis. 

(2) Example 2. 

(i) Facts. 

(ii) Analysis. 

(e) Applicability date. 

§ 1.30C–4 Special rules. 

(a) No credit allowable in certain 

circumstance. 

(1) Property used outside the United States. 

(2) Property placed in service in a United 

States territory. 

(3) Section 179. 

(b) Recapture. 

(1) In general. 

(2) Recapture event. 

(3) Property placed in service in a location 

that ceases to be in a qualified census tract. 

(4) Recapture amount. 

(i) In general. 

(ii) Special rule for apportioned-use 

property. 

(5) Basis adjustment. 

(c) Property used by a tax-exempt or 

governmental entity. 

(1) In general. 

(2) Interaction with section 6417. 

(d) Dual-use property. 

(1) Dual use property used for dispensing 

or storing qualified alternative fuel and 

conventional fuel. 

(2) Qualified alternative fuel storage. 

(3) Dual use property used to store or 

transmit electricity for charging a motor 

vehicle and for other purposes. 

(4) Example. 

(i) Facts. 

(ii) Analysis. 

(e) Applicability date. 

§ 1.30C–1 Credit for alternative fuel vehicle 

refueling property; Definitions. 

(a) In general. The section 30C 

regulations (as defined in paragraph 

(b)(23) of this section) apply for 

purposes of determining the availability 

and amount of any credit that is allowed 

to a taxpayer by section 30C(a) of the 

Code (as defined in paragraph (b)(24)(ii) 

of this section) with respect to any 30C 

property (as defined in paragraph (b)(1) 

of this section) placed in service by the 

taxpayer during the taxable year. 

Paragraph (b) of this section provides 

definitions of terms for purposes of 

applying section 30C and the section 

30C regulations. See § 1.30C–2 for 

general rules for determining the 

amount of the allowed section 30C 

credit. See § 1.30C–3 for rules relating to 

the increased section 30C credit amount 

for satisfying prevailing wage and 

apprenticeship requirements. See 

§ 1.30C–4 for special rules. 

(b) Definitions. The definitions in this 

section apply for purposes of section 

30C and the section 30C regulations. 

(1) 30C property. 30C property is any 

applicable property described in 

paragraph (b)(1)(i) or (ii) of this section 

that also meets the requirements of 

paragraph (b)(1)(iii) of this section. 

(i) Applicable property. Applicable 

property is any property (other than real 

property and a building and its 

structural components) that is 

comprised of components that are 

functionally interdependent— 

(A) For the storage or dispensing of a 

qualified alternative fuel into the fuel 

tank of a motor vehicle propelled by 

such fuel, but only if the storage or 

dispensing of the fuel is located at the 

point where such fuel is delivered into 

the fuel tank of the motor vehicle 

(refueling property); or 

(B) For the recharging of motor 

vehicles propelled by electricity, but 

only if the property is located at the 

point where the motor vehicles are 

recharged (recharging property). 

(ii) Property integral to refueling 

property or recharging property. If 

applicable, the term applicable property 

also includes property the purpose of 

which is described in paragraph 

(b)(1)(i)(A) or (B) of this section that is 

an integral part of refueling property or 

recharging property. 

(iii) Other requirements. To be 30C 

property, any applicable property must 

also meet the following requirements— 

(A) The property is of a character 

subject to an allowance for depreciation, 

or installed on property that is used as 

the principal residence of the taxpayer 

(within the meaning of section 121 of 

the Code); 

(B) The original use of the property 

begins with the taxpayer; and 

(C) The property is placed in service 

(as defined in § 1.30C–2(b)(6)) in an 

eligible census tract as described in 

§ 1.30C–2(c). 

(2) 45Z transportation fuel. 45Z 

transportation fuel means any 

transportation fuel (as defined in section 

45Z(d)(5) of the Code) produced after 

December 31, 2024. 

(3) Building and structural 

components. Building and structural 

components has the same meaning as in 

§ 1.48–1(e). 

(4) Census block. Census block means 

the smallest geographic area for which 

the Census Bureau collects and 

tabulates decennial census data. 

(5) Charger. Charger means a device 

with one or more charging ports and 

connectors for charging electric 

vehicles. 

(6) Charging port. Charging port 

means the system within a charger that 

charges one motor vehicle. A charging 

port may have multiple connectors, but 

it can provide power at the port’s rated 

electrical output to charge only one 

motor vehicle through one connector at 

a time. 

(7) Clean burning fuel. Clean burning 

fuel means— 

(i) Any qualified alternative fuel; or 

(ii) Electricity. 

(8) Connector. Connector means the 

device that attaches an electric vehicle 

to a charging port to transfer electricity. 

(9) Conventional fuel. Conventional 

fuel means any fuel that is not a clean 

burning fuel. Conventional fuel includes 

diesel fuel that is not in a qualifying 

biodiesel mixture and gasoline. 

(10) Conventional refueling property. 

Conventional refueling property means 

property that is used to dispense or 

store only conventional fuel. 

(11) Electric vehicle. Electric vehicle 

means a motor vehicle that is either 

partially or fully powered by electric 

power received from an external power 

source. 

(12) Fuel dispenser. Fuel dispenser 

means, in the case of refueling property, 

the unit through which fuel is 

dispensed into the fuel tank of a motor 

vehicle, if such unit is capable of fueling 

at or above the dispenser’s minimum 

rate of fueling and has at least one hose 

and nozzle, and optionally a meter, 

valve, controller, and enclosure. 

(13) Fuel tank. Fuel tank means, in 

the case of a motor vehicle propelled by 

qualified alternative fuel, the tank that 

supplies fuel to the propulsion engine of 

the motor vehicle or, in the case of a 

fuel cell electric vehicle, the tank that 

supplies fuel to the fuel cell of the 

motor vehicle. 

(14) Functionally interdependent. 

Components are functionally 

interdependent if the placing in service 

of each component is dependent upon 

the placing in service of each of the 

other components in order to refuel or 

recharge a motor vehicle. 

(15) Integral part. Property is an 

integral part of a refueling or recharging 

property if it is used directly in the 

intended function of the refueling 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 76771 

property or recharging property and is 

essential to the completeness of the 

intended function, meets all of the 

requirements for 30C property described 

in paragraph (b)(1)(iii) of this section, is 

owned by the taxpayer that owns the 

refueling property or recharging 

property, and is specifically designed to 

be integrated with the refueling property 

or recharging property with which it is 

associated. 

(16) Located at the point—(i) 

Refueling property. For purposes of 

determining whether property is 

considered refueling property, and 

therefore 30C property, located at the 

point means the point where fuel is 

delivered into the fuel tank of the motor 

vehicle. Property will be considered 

located at the point where fuel is 

delivered into the fuel tank of the motor 

vehicle if such property is located at the 

same or immediately adjacent physical 

address as such fuel delivery point. 

(ii) Recharging property. For purposes 

of determining whether property is 

considered recharging property, and 

therefore 30C property, located at the 

point means the point where the motor 

vehicles are recharged. Property will be 

considered located at the point where 

the motor vehicles are recharged if it is 

located at the same or immediately 

adjacent physical address as such 

recharging point. Property that is a 

component of a motor vehicle and is 

necessary for the propulsion of that 

vehicle is considered part of the vehicle 

rather than recharging property and is 

therefore not 30C property. 

(17) Motor vehicle—(i) In general. 

Motor vehicle means any vehicle that 

has at least 4 wheels and is 

manufactured primarily for use on 

public streets, roads, and highways (not 

including a vehicle operated exclusively 

on a rail or rails). 

(ii) 2- or 3-wheeled motor vehicle. For 

purposes of § 1.30C–2(c)(5), motor 

vehicle also includes any vehicle that 

has 2 or 3 wheels, is manufactured 

primarily for use on public streets, 

roads, or highways (not including a 

vehicle operated exclusively on a rail or 

rails), and is propelled by electricity. 

(18) Original use. Original use has the 

same meaning as in § 1.48–2(b)(7). 

(19) Population census tract. 

Population census tract means the 

small-area geographic divisions of a 

county or statistically equivalent entity 

defined for the tabulation and 

presentation of data from the decennial 

census and selected other statistical 

programs, as defined by the U.S. Bureau 

of the Census (Census Bureau). 

Population census tracts are comprised 

of census blocks. The Census Bureau 

assigns to each population census tract 

a unique 11-digit census tract 

Geographic Identifier (GEOID). An 11- 

digit census tract GEOID is a GEOID (a 

numeric identifier associated with a 

geographic area) defined by the Census 

Bureau and comprised of a 2-digit State 

GEOID, 3-digit county GEOID, and 6- 

digit census tract GEOID. The 11-digit 

census tract GEOID provides a unique 

identifier for each population census 

tract in the United States, including 

tracts in the U.S. territories. The 11-digit 

census tract GEOIDs may vary for any 

individual latitude/longitude point 

based on different census tract boundary 

delineation dates over time. 

(20) Qualified alternative fuel. 

Qualified alternative fuel is a fuel 

meeting one of the following 

conditions— 

(i) At least 85 percent of its volume 

consists of one or more of the following: 

ethanol, natural gas, compressed natural 

gas, liquefied natural gas, liquefied 

petroleum gas, or hydrogen; 

(ii) It is a qualifying biodiesel mixture; 

or 

(iii) It is 45Z transportation fuel. 

(21) Qualifying biodiesel mixture. 

Qualifying biodiesel mixture means a 

mixture of biodiesel (as defined in 

section 40A(d)(1) of the Code) and 

diesel fuel (as defined in section 

4083(a)(3) of the Code) if such mixture 

contains at least 20 percent biodiesel. 

For this purpose, any kerosene in a 

mixture— 

(i) Is disregarded in determining 

whether the mixture is a mixture of 

biodiesel and diesel fuel; and 

(ii) Is taken into account in 

determining whether the mixture 

contains at least 20 percent biodiesel. 

(22) Section 30C credit. The term 

section 30C credit means the credit 

allowed by section 30C(a) to a taxpayer 

to claim against the tax imposed by 

chapter 1 (as defined in paragraph 

(b)(24)(i) of this section) of an amount 

equal to a percentage of the cost of 30C 

property placed in service by the 

taxpayer during the taxable year, subject 

to limitations described in section 

30C(b) and the section 30C regulations. 

(23) Section 30C regulations. The term 

section 30C regulations means this 

section and §§ 1.30C–2 through 1.30C– 

4. 

(24) Statutory references—(i) Chapter 

1. The term chapter 1 means chapter 1 

of the Code. 

(ii) Code. The term Code means the 

Internal Revenue Code. 

(25) Storage property—(i) In general. 

Storage property means qualified 

alternative fuel storage property and 

electrical energy storage property. 

(ii) Qualified alternative fuel storage 

property. Qualified alternative fuel 

storage property means property used 

for the storage of qualified alternative 

fuel, but only if such storage property is 

located at the point where the motor 

vehicles are refueled. For example, in 

the case of hydrogen energy storage 

property, such property may include but 

is not limited to a hydrogen compressor 

and associated storage tank and an 

underground storage facility and 

associated compressors. 

(iii) Electrical energy storage property. 

Electrical energy storage property means 

property that receives, stores, and 

delivers energy for conversion to 

electricity, but only if such storage 

property is located at the point where 

the motor vehicles are recharged. For 

example, electrical energy storage 

property may include but is not limited 

to rechargeable electrochemical batteries 

of all types (such as lithium ion, 

vanadium flow, sodium sulfur, and 

lead-acid). 

(c) Applicability date. This section 

applies to property placed in service in 

taxable years ending after [date of 

publication of final regulations in the 

Federal Register]. 

§ 1.30C–2 General rules. 

(a) Amount of credit—(1) In general. 

Section 30C(a) of the Code allows a 

taxpayer to claim as a credit against the 

tax imposed by chapter 1 an amount 

equal to a percentage of the cost of 30C 

property placed in service by the 

taxpayer during the taxable year, subject 

to certain dollar-amount limitations 

described in section 30C(b) and 

paragraph (a)(4) of this section. 

(2) Applicable percentages—(i) 

Property of a character subject to an 

allowance for depreciation. In the case 

of property of a character subject to an 

allowance for depreciation, the section 

30C credit is an amount equal to 6 

percent of the cost of any 30C property 

placed in service by the taxpayer during 

the taxable year. For 30C property 

placed in service by certain tax-exempt 

organizations and governmental units 

described in section 50(b)(3) and (4) of 

the Code, see sections 30C(e)(2) and 

6417(d)(2) of the Code and § 1.6417– 

2(c). 

(ii) Projects meeting the prevailing 

wage and apprenticeship (PWA) 

requirements. In the case of any 30C 

project (as described in § 1.30C–3(b)(2)) 

that satisfies the prevailing wage and 

registered apprenticeship requirements 

of section 30C(g) and § 1.30C–3 (PWA 

requirements), the section 30C credit for 

the cost of any 30C property in such 

project placed in service by the taxpayer 

during the taxable year is multiplied by 

5. 


lotter on DSK11XQN23PROD with PROPOSALS1
76772 Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 

(iii) Property not subject to an 

allowance for depreciation. In the case 

of property of a character not subject to 

an allowance for depreciation, the 

section 30C credit is an amount equal to 

30 percent of the cost of any 30C 

property placed in service by the 

taxpayer during the taxable year 

provided that such property is installed 

on property that is used as the 

taxpayer’s principal residence (within 

the meaning of section 121 of the Code). 

(3) Apportionment of section 30C 

credit between business and personal 

use. In the case of depreciable 30C 

property installed at the taxpayer’s 

principal residence, the business use of 

which is more than 50 percent of a 

taxpayer’s total use of the property for 

the taxable year in which the property 

is placed in service, the taxpayer’s 

section 30C credit for that taxable year 

with respect to that 30C property is 

treated as a general business credit 

under section 30C(d)(1) and paragraph 

(a)(2)(i) of this section (and not allowed 

under section 30C(a) or paragraph 

(a)(2)(iii) of this section). If the business 

use of such 30C property is 50 percent 

or less of a taxpayer’s total use of the 

property for the taxable year in which 

the property is placed in service 

(apportioned-use property), the 

taxpayer’s section 30C credit for that 

taxable year with respect to that 

property must be apportioned as 

provided in paragraphs (a)(3)(i) and (ii) 

of this section: 

(i) Business use portion. The portion 

of the section 30C credit corresponding 

to the percentage of the taxpayer’s 

business use of the 30C property is 

treated as a general business credit 

under section 30C(d)(1) and paragraph 

(a)(2)(i) of this section (and not allowed 

under section 30C(a) or paragraph 

(a)(2)(iii) of this section). 

(ii) Personal use portion. The portion 

of the section 30C credit corresponding 

to the percentage of the taxpayer’s 

personal use of the 30C property is 

treated as a section 30C credit allowed 

under section 30C(a) pursuant to section 

30C(d)(2) and paragraph (a)(2)(iii) of this 

section. 

(4) Dollar-amount limitations—(i) In 

general. The section 30C credit allowed 

with respect to any single item of 30C 

property placed in service by the 

taxpayer during the taxable year cannot 

exceed— 

(A) $100,000 in the case of any such 

item of property of a character subject 

to an allowance for depreciation; and 

(B) $1,000 in any other case. 

(ii) Apportioned-use property. In the 

case of apportioned-use property 

described in paragraph (a)(3) of this 

section, the dollar-amount limitation 

must be apportioned in the same 

manner as the taxpayer’s section 30C 

credit. For example, in the case of 30C 

property the business use of which is 40 

percent of a taxpayer’s total use of the 

property for the taxable year in which 

the property is placed in service: the 

portion treated as a general business 

credit under section 30C(d)(1) cannot 

exceed $40,000 ($100,000 multiplied by 

40 percent), and the portion treated as 

a section 30C credit allowed under 

section 30C(a) cannot exceed $600 

($1,000 multiplied by 60 percent). 

(b) 30C property rules—(1) Single item 

of 30C property. A taxpayer may claim 

the section 30C credit with respect to 

30C property if the taxpayer places in 

service at least one single item of 30C 

property as described in paragraph 

(b)(6) of this section, any other 

components associated with the item 

that are functionally interdependent, 

and, if applicable, any integral part 

property associated with the item. For 

purposes of calculating the section 30C 

credit, a single item of 30C property is— 

(i) Each charging port for recharging 

property; 

(ii) Each fuel dispenser for refueling 

property; or 

(iii) Each storage property (for this 

purpose, a storage system comprised of 

multiple storage tanks, such as a 

cascade system, is treated as a single 

storage property). 

(2) Associated property. If 

functionally interdependent property 

and, if applicable, integral part property 

that is a part of the 30C property is 

placed in service by a taxpayer in a 

taxable year and is associated with one 

or more single items of 30C property 

(associated property), then such 

associated property must be allocated as 

follows: 

(i) If associated property is directly 

attributable and traceable to a single 

item of 30C property, then the cost of 

such associated property is allocated to 

such single item of 30C property. 

(ii) If associated property is directly 

attributable and traceable to more than 

one single item of 30C property, then 

the cost of such associated property is 

allocated to such single item of 30C 

property based on the cost of each single 

item of 30C property. The total cost of 

such associated property divided among 

the 30C properties cannot exceed 100 

percent of the cost of such associated 

property. 

(3) Calculating the section 30C credit. 

The section 30C credit for each single 

item of 30C property is the lesser of the 

tentative section 30C credit for that 

single item or the dollar-amount 

limitations in paragraph (a)(4) of this 

section for that single item. The 

tentative section 30C credit for each 

single item of 30C property equals: 

(i) The applicable percentage; 

multiplied by 

(ii) The sum of— 

(A) The cost of the single item of 30C 

property; 

(B) The cost of associated property 

that is directly attributable and traceable 

to the single item of 30C property (as 

described in paragraph (b)(2)(i) of this 

section); and 

(C) The cost of the ratable share of 

associated property (as described in 

paragraph (b)(2)(ii) of this section). 

(4) Special rule for bidirectional 

charging equipment. Property will not 

fail to be treated as 30C property solely 

because such property is capable of 

charging the battery of a motor vehicle 

propelled by electricity and allows 

discharging electricity from such battery 

to an electric load external to such 

motor vehicle. 

(5) Property for the refueling of certain 

two- and three-wheeled motor vehicles. 

30C property also includes property of 

a character subject to an allowance for 

depreciation that is for the recharging of 

a motor vehicle described in § 1.30C– 

1(b)(17)(ii). 

(6) Placed in service—(i) Depreciable 

property. 30C property that is 

depreciable property is considered 

placed in service in the earlier of the 

following taxable years: 

(A) The taxable year in which, under 

the taxpayer’s depreciation practice, the 

period for depreciation with respect to 

such property begins; or 

(B) The taxable year in which such 

property is placed in a condition or state 

of readiness and availability for a 

specifically assigned function, whether 

in a trade or business or in the 

production of income. 

(ii) Non-depreciable property. 30C 

property that is non-depreciable 

property is considered placed in service 

when it is installed at the principal 

residence of the taxpayer and is 

operational. 

(c) Eligible census tracts—(1) 

Geographic requirement. To qualify for 

the section 30C credit, 30C property 

must be placed in service in an eligible 

census tract. Eligible census tracts 

include any population census tract that 

qualifies as a low-income community 

census tract or that is a non-urban 

census tract. 

(2) Low-income community census 

tract—(i) In general. A population 

census tract is an eligible low-income 

community census tract for purposes of 

the section 30C credit if the population 

census tract meets the requirements of 

section 45D(e)(1) of the Code (relating to 

the new markets tax credit), which 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 76773 

requires that the poverty rate for such 

tract is at least 20 percent, or in the case 

of a tract not located within a 

metropolitan area, the median family 

income for such tract does not exceed 

80 percent of statewide median family 

income, or in the case of a tract located 

within a metropolitan area, the median 

family income for such tract does not 

exceed 80 percent of the greater of 

statewide median family income or the 

metropolitan area median family 

income. 

(ii) Modification for high migration 

rural counties. In the case of a census 

tract located within a high migration 

rural county, as defined under section 

45D(e)(5) of the Code, such census tract 

is a low-income community if the 

median family income for such tract 

does not exceed 85 percent of statewide 

median family income. 

(3) Non-urban census tract. For 

purposes of the section 30C credit, a 

non-urban census tract is any 

population census tract in which at least 

10 percent of the census blocks are not 

designated as urban areas by the Census 

Bureau. 

(4) Determination of eligibility of 

specific census tracts. The Internal 

Revenue Service (IRS) will periodically 

publish lists of specific census tracts 

that meet the criteria in paragraph (c)(1) 

of this section along with instructions 

on how taxpayers may determine their 

census tract identifying numbers in the 

Federal Register or Internal Revenue 

Bulletin (see § 601.601 of this chapter). 

(d) Reduction in basis. The basis of 

any property for which a credit is 

allowable under section 30C(a) must be 

reduced by the amount of the credit so 

allowed (determined without regard to 

section 30C(d)). 

(e) Examples. The following examples 

illustrate the rules of this section. 

(1) Example 1—(i) Facts. A installs a 

free-standing garage at A’s principal 

residence, which costs $25,000. A 

installs electric vehicle supply 

equipment (EVSE), which costs $1,500 

and consists of an AC Level 2 charger, 

charging port, and connector. A also 

installs a wall mount to support the 

charging port, which costs $500. The 

wall mount is specifically designed to 

be integrated with the EVSE. Finally, A 

adds a new electric panel and installs 

conduit/wiring, which together costs 

$1,000, to connect the charging port to 

the electrical service line. The new 

electric panel and conduit/wiring are 

used exclusively to service the charging 

port and are required to make the 

charging port operational. All property 

is owned by A and is not subject to an 

allowance for depreciation. All costs 

include labor costs. The property is 

placed in service at the time it is 

installed. A’s principal residence is 

located in an eligible census tract as 

described in paragraph (c) of this 

section. 

(ii) Analysis—(A) 30C property. The 

charger, charging port, connector, wall 

mount, electric panel, and conduit/ 

wiring are 30C property under § 1.30C– 

1(b)(1). The charger, connector, and 

conduit/wiring are functionally 

interdependent with the charging port 

(and all of these properties together 

constitute recharging property under 

§ 1.30C–1(b)(1)(i)(B)). The electric panel 

and wall mount are an integral part of 

the recharging property under § 1.30C– 

1(b)(1)(ii) and (b)(15). The charger, 

charging port, connector, wall mount, 

electrical panel, and conduit/wiring 

meet the other requirements of § 1.30C– 

1(b)(1)(iii) because the property is 

installed at A’s principal residence, the 

original use of the property begins with 

A, and the property is placed in service 

(as defined in paragraph (b)(6) of this 

section) in an eligible census tract as 

described in paragraph (c) of this 

section. The garage is not 30C property 

because any building or its structural 

components are excluded from the 

definition of 30C property under 

§ 1.30C–1(b)(1)(i), and therefore cannot 

qualify as functionally interdependent 

with the charging port nor as an integral 

part of the recharging property. 

(B) Calculation of the credit. Under 

paragraph (b)(1)(i) of this section, the 

charging port is the item of 30C property 

for purposes of calculating the credit. 

Further, under paragraph (b)(2) of this 

section, the charger (excluding the 

charging port), connector, wall mount, 

electrical panel, and conduit/wiring are 

all directly attributable and traceable 

associated property with respect to the 

charging port. Under paragraph (b)(3) of 

this section, the tentative section 30C 

credit is the sum of the cost of a single 

item of 30C property (charging port) and 

the cost of directly attributable and 

traceable associated property, 

multiplied by the applicable percentage 

(30%). Here, the cost of the charging 

port is included in the cost of the EVSE 

(with the charger and connector), and 

because the charger includes only a 

single port, the entire $1,500 is taken 

into account as either the item of 30C 

property or as directly attributable and 

traceable associated property. Thus, the 

tentative section 30C credit under 

paragraph (b)(3) of this section is $3,000 

($1,500 for the charger + $500 for the 

wall mount + $1,000 for the panel and 

wiring) multiplied by the applicable 

percentage (30%), which equals $900. 

Because $900 is less than the $1,000 

limit in paragraph (a)(4)(i)(B) of this 

section, the final section 30C credit is 

also $900. 

(2) Example 2—(i) Facts. The facts are 

the same as paragraph (e)(1) of this 

section (Example 1), except that the 

total cost of all directly attributable and 

traceable associated property other than 

the charger (excluding the charging 

port) is $3,500. 

(ii) Analysis. Under paragraph (b)(3) 

of this section, the tentative section 30C 

credit is the sum of the cost of a single 

item of 30C property (charging port) and 

the cost of directly attributable and 

traceable associated property, 

multiplied by the applicable percentage 

(30%). As in paragraph (e)(1) of this 

section (Example 1), the cost of the 

charging port is included in the cost of 

the EVSE (with the charger and 

connector), and because the charger 

includes only a single port, the entire 

$1,500 is taken into account as either 

the item of 30C property or as directly 

attributable and traceable associated 

property. Thus, the tentative section 

30C credit under paragraph (b)(3) of this 

section is $5,000 ($1,500 for the charger 

+ $3,500 for all directly attributable and 

traceable associated property) 

multiplied by the applicable percentage 

(30%), which equals $1,500. Because 

$1,500 is greater than the $1,000 limit 

in paragraph (a)(4)(i)(B) of this section, 

the final section 30C credit is $1,000. 

(3) Example 3—(i) Facts. The facts are 

the same as paragraph (e)(2) of this 

section (Example 2), except that A 

operates a delivery service and installs 

the EVSE at her personal residence that 

she uses to charge both her personal 

vehicle and her delivery vehicle. Her 

business use of the EVSE is 40%. The 

PWA requirements are not satisfied. 

(ii) Analysis. (A) As in paragraph 

(e)(2) of this section (Example 2), the 

cost of the charging port is included in 

the cost of the EVSE (with the charger 

and connector), and because the charger 

includes only a single port, the entire 

$1,500 is taken into account as either 

the item of 30C property or as directly 

attributable and traceable associated 

property. Under paragraph (a)(3) of this 

section, the 30C property is 

apportioned-use property. As a result, 

under paragraph (a)(4)(ii) of this section, 

the dollar-amount limitation must be 

apportioned in the same manner as the 

taxpayer’s section 30C credit. 

(B) Under paragraph (b)(3) of this 

section, the tentative section 30C credit 

for the personal use portion of the 30C 

property is the sum of the cost of a 

single item of 30C property (charging 

port) and the cost of directly attributable 

and traceable associated property, 

multiplied by the personal use portion 

(60%), and then multiplied by the 


lotter on DSK11XQN23PROD with PROPOSALS1
76774 Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 

applicable percentage (30%). The 

tentative section 30C credit under 

paragraph (b)(3) of this section is $5,000 

($1,500 for the charger + $3,500 for all 

directly attributable and traceable 

associated property) multiplied by the 

personal use portion (60%), and then 

multiplied by the applicable percentage 

(30%), which equals $900. Because 

$900 is greater than the $600 limit in 

paragraph (a)(4)(ii) of this section 

($1,000 × 60%), the final section 30C 

credit for the personal use portion is 

$600. 

(C) Under paragraph (b)(3) of this 

section, the tentative section 30C credit 

for the business use portion of the 30C 

property is the sum of the cost of a 

single item of 30C property (charging 

port) and the cost of directly attributable 

and traceable associated property, 

multiplied by the business-use portion 

(40%), and then multiplied by the 

applicable percentage (6%). The 

tentative section 30C credit under 

paragraph (b)(3) of this section is $5,000 

($1,500 for the charger + $3,500 for all 

directly attributable and traceable 

associated property) multiplied by the 

business-use portion (40%), and then 

multiplied by the applicable percentage 

(6%), which equals $120. Because $120 

is less than the $40,000 limit in 

paragraph (a)(4)(ii) of this section 

($100,000 × 40%), the final section 30C 

credit for the business-use portion is 

$120. 

(4) Example 4—(i) Facts. B is a 

business entity that owns a fleet of 

medium-duty electric delivery vans. To 

recharge its electric delivery vans, B 

installs several properties at the same 

physical address in the same taxable 

year. First, B installs 20 direct current 

fast chargers (DCFCs), that have 2 

charging ports each for a total of 40 

charging ports. Each DCFC costs 

$30,000. B also installs a pedestal to 

support each DCFC, which cost $1,000 

each. B additionally installs an electric 

panel and conduit/wiring, which 

together cost $50,000, to connect the 

DCFCs to the electrical service line. 

Finally, B installs a smart charge 

management system for $25,000, which 

is used to control the amount of power 

dispensed by the DCFCs to meet B’s 

charging needs and prevent equipment 

overloads. The electric panel and 

conduit/wiring are used exclusively to 

service the DCFCs and are necessary to 

install to make each charging port 

operational. All property is owned by B. 

All costs include labor costs. Each of the 

above properties is property of a 

character subject to depreciation and is 

placed in service at the time it is 

installed. The physical address where B 

installs these properties is located in an 

eligible census tract as described in 

paragraph (c) of this section. 

(ii) Analysis—(A) 30C property. The 

DCFCs, pedestals, electric panel, 

conduit/wiring, and the smart charge 

management system all constitute 30C 

property under § 1.30C–1(b)(1). Each 

DCFC and each pedestal is functionally 

interdependent with the respective 

charging ports with which they are 

associated and the conduit/wiring 

property is functionally interdependent 

with the entire class of charging ports 

(and these properties together constitute 

recharging property under § 1.30C– 

1(b)(1)(i)(B)) and the electric panel and 

the smart charge management system 

constitute integral parts of the entire 

class of charging ports under § 1.30C– 

1(b)(1)(ii) and (b)(15). The DCFCs, 

pedestals, the electrical panel, conduit/ 

wiring, and the smart charge 

management system all meet the other 

requirements of § 1.30C–1(b)(1)(iii) 

because the properties are each subject 

to an allowance for depreciation, the 

original use of the properties begins 

with B, and the properties are placed in 

service (as described in paragraph (b)(6) 

of this section) in an eligible census 

tract as described in paragraph (c) of 

this section. 

(B) Calculation of the credit. (1) 

Under paragraph (b)(1)(i) of this section, 

each charging port constitutes a separate 

item of 30C property for purposes of 

calculating the credit. Additionally, 

under paragraph (b)(2)(i) of this section, 

each charger (excluding its respective 

ports) and each pedestal, electrical 

panel, and the conduit/wiring are all 

associated property that is directly 

attributable to and traceable with 

respect to their respective charging 

ports. Further, the electric panel, the 

conduit/wiring, and the smart charge 

management system are associated 

property directly attributable and 

traceable to more than one single item 

of 30C property, as described in 

paragraph (b)(2)(ii) of this section, 

because they are not directly 

attributable and traceable to any single 

charging port. 

(2) Under paragraph (b)(3) of this 

section, B’s tentative section 30C credit 

for each single item of 30C property 

(each charging port) is the sum of the 

cost of that single item of 30C property 

(each charging port), the cost of directly 

attributable and traceable associated 

property, and the ratable share of the 

cost of other associated property 

multiplied by the applicable percentage 

as described in paragraph (a)(2) of this 

section (6% or 30%, depending on 

whether the PWA requirements are 

satisfied). 

(3) Because each DCFC charger costs 

$30,000 and each has 2 charging ports, 

the cost of each port is $15,000 ($30,000 

÷ 2). Additionally, because each 

pedestal supports a charger with 2 ports 

and costs $1,000, the cost attributable to 

each port is $500 ($1,000 ÷ 2). The costs 

of the electric panel and the conduit/ 

wiring are allocated ratably based on the 

cost per charging port ($50,000 ÷ 40 = 

$1,250). Similarly, the cost of the smart 

charge management system is also 

allocated ratably based on the cost per 

charging port ($25,000 ÷ 40 = $625). 

(4) B should therefore calculate a 

separate section 30C credit for each 

single item of 30C property (that is, each 

of the 40 charging ports) by adding the 

cost of the charging port ($15,000) to the 

cost ($500) of directly attributable and 

traceable associated property (respective 

pedestal) and to the ratable shares 

($1250 + $625) of the two functionally 

interdependent and integral part 

properties (panel, including its conduit/ 

wiring, and the smart charge 

management system). The sum of these 

costs is $17,375 for each charging port. 

(5) If B does not meet the PWA 

requirements, B’s tentative section 30C 

credit for each charging port is $17,375 

multiplied by the applicable percentage 

(6% under paragraph (b)(3)(i) of this 

section), which equals $1,042.50. 

Because $1,042.50 is less than the 

$100,000 credit limit for depreciable 

property under paragraph (a)(4)(i)(A) of 

this section, the final section 30C credit 

for each charging port is also $1,042.50. 

B’s total section 30C credit is $41,700, 

the sum of the section 30C credit for 

each charging port that B placed in 

service ($1,042.50 × 40) in the taxable 

year. 

(6) If B meets the PWA requirements, 

B’s tentative section 30C credit for each 

charging port is $17,375 multiplied by 

the increased applicable percentage 

(30%) under paragraph (b)(3)(i) of this 

section, which equals $5,212.50. 

Because $5,212.50 is less than the 

$100,000 credit limit for depreciable 

property under paragraph (a)(4)(i)(A) of 

this section, the final section 30C credit 

for each charging port is also $5,212.50. 

B’s total section 30C credit is $208,500, 

the sum of the section 30C credit for 

each charging port that B placed in 

service ($5,212.50 × 40) during the 

taxable year. The fact that this total 

credit exceeds the $100,000 limit is not 

relevant because section 30C(b)(1) and 

paragraph (a)(4)(i)(A) of this section 

provide that the $100,000 limit applies 

on a per-item basis and not as an 

aggregate limit. 

(5) Example 5—(i) Facts. The facts are 

the same as paragraph (e)(4) of this 

section (Example 4), except that B 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 76775 

places in service the electric panel, 

conduit/wiring, smart charge 

management system, and 10 DCFCs in 

Year 1. In Year 2, B then installs and 

places in service the other 10 DCFCs. 

(ii) Analysis—(A) 30C property. 

Under paragraph (a) of this section, the 

amount of the credit, generally, is 

determined based on a percentage of the 

cost of 30C property placed in service, 

as defined under paragraph (b)(6) of this 

section, by a taxpayer during a taxable 

year. In this example, B has placed in 

service 10 DCFCs, and certain integral 

part property and property that is 

functionally interdependent to all 20 

DCFCs in one tax year, while placing in 

service 10 more DCFCs in a different tax 

year. B will, therefore, include the 

electric panel, conduit/wiring, smart 

charge management system, and 10 

pedestals and 20 ports (that is, the 10 

DCFCs placed in service in year 1) in 

calculating the Year 1 section 30C 

credit. In Year 2, B will only include in 

calculating B’s total section 30C credit, 

the 10 pedestals and 20 ports installed 

in year 2. 

(B) Calculation of the credit. (1) For 

year 1 the cost of each DCFC charger is 

still $30,000 and the cost of each port 

is still $15,000. Additionally, the cost 

for the pedestals attributable to each 

port is still $500. The costs of the 

electric panel and the conduit/wiring 

are allocated ratably based on the cost 

per charging port placed in service in 

the same taxable year ($50,000 ÷ 20 = 

$2,500). Similarly, the cost of the smart 

charge management system is also 

allocated ratably based on the cost per 

charging port placed in service in the 

same taxable year ($25,000 ÷ 20 = 

$1,250). The cost for each single item in 

Year 1 includes the cost of each port 

($15,000), the ratable share of the cost 

of the pedestal ($500), the ratable share 

of the cost of the electric panel and 

conduit/wiring ($2,500) and the ratable 

share of the cost of the smart charge 

management system ($1,250). The sum 

of these costs for a single item of 30C 

property in year 1 is $19,250. If B did 

not meet the PWA requirements, B’s 

tentative section 30C credit for each 

charging port is $19,250 multiplied by 

the 6% applicable rate, which equals 

$1,155 per single item of 30C property 

for Year 1. In total, B’s section 30C 

credit for Year 1 would be $ 23,100 

($1,155 × 20). If B does meet the PWA 

requirements, B’s tentative section 30C 

credit for each port is $5,775, which is 

the $19,250 cost per single item 

multiplied by the 30% applicable rate. 

In total, if B meets the PWA 

requirements, B’s section 30C credit for 

Year 1 would be $115,500 ($5,775 × 20). 

The fact that this total credit exceeds the 

$100,000 limit is not relevant because 

section 30C(b)(1) and paragraph 

(a)(4)(i)(A) of this section provide that 

the $100,000 limit applies on a per-item 

basis and not as an aggregate limit. 

(2) For Year 2, the cost of each port 

would still be $15,000 and the cost for 

the pedestals attributable to each port is 

still $500. The integral part property 

was already placed in service in Year 1, 

and therefore, the cost associated with 

that property is not allocated to the Year 

2 property. Therefore, in Year 2, if B 

does not meet the PWA requirements, 

B’s section 30C credit for each single 

item is $930 ($15,500 × 6%), and the 

amount of B’s total Year 2 section 30C 

credit is $18,600 ($930 × 20). If B meets 

the PWA requirements, B’s section 30C 

credit for each single item is $4,650 

($15,500 × 30%), and B’s total Year 2 

section 30C credit is $93,000 ($4,650 × 

20). 

(6) Example 6—(i) Facts. The facts are 

the same as paragraph (e)(4) of this 

section (Example 4), except that B 

begins construction and incurs $100,000 

of costs related to the installation of the 

chargers in Year 1, but no property is 

placed in service until Year 2. 

(ii) Analysis. There is no section 30C 

credit for Year 1 because no 30C 

property has been placed in service. The 

30C property is placed in service in 

Year 2. In Year 2, the section 30C credit 

is the same as the Year 1 credit in 

paragraph (e)(4) of this section (Example 

4). 

(7) Example 7—(i) Facts. The facts are 

the same as paragraph (e)(4) of this 

section (Example 4), except that instead 

of installing 20 DCFCs, B installs 10 

DCFCs, with 2 charging ports each, and 

10 AC Level 2 chargers (AC chargers), 

also with 2 charging ports each. Each 

AC Level 2 charger costs $10,000. Each 

DCFC charger still costs $30,000. B also 

installs a pedestal to support each AC 

charger, which costs $1,000 each. 

(ii) Analysis—(A) 30C property. The 

analysis for the DCFCs pedestals, 

electric panel, conduit/wiring, and 

smart charge management system is the 

same as in Example 4 of this paragraph 

(e). Additionally, the AC chargers also 

constitute 30C property under § 1.30C– 

1(b)(1). Each AC charger and each 

pedestal is functionally interdependent 

with the respective charging ports with 

which they are associated (and these 

properties together constitute recharging 

property under § 1.30C–1(b)(1)(i)(B)) 

and the electric panel, the conduit/ 

wiring property, and the smart charge 

management system constitute integral 

parts of all of the DCFC ports and AC 

charger charging ports under § 1.30C– 

1(b)(1)(ii) and (b)(15). The AC chargers 

also meet the other requirements of 

§ 1.30C–1(b)(1)(iii) because they are 

subject to an allowance for depreciation, 

the original use of the properties begins 

with B, and are placed in service (as 

defined in paragraph (b)(6) of this 

section) in an eligible census tract as 

described in paragraph (c) of this 

section. 

(B) Calculation of the credit. (1) 

Under paragraph (b)(1)(i) of this section, 

each of the 20 DCFC charging ports and 

each of the 20 AC charger charging ports 

constitutes a separate item of 30C 

property for purposes of calculating the 

credit. Additionally, under paragraph 

(b)(2)(i) of this section, each charger 

(excluding its respective ports) and each 

pedestal, electrical panel, and the 

conduit/wiring are all associated 

property that is directly attributable to 

and traceable associated property with 

respect to their respective charging 

ports. Further, the electric panel, the 

conduit/wiring, and the smart charge 

management system are associated 

property directly attributable and 

traceable to more than one single item 

of 30C property, as described in 

paragraph (b)(2)(ii) of this section, 

because they are not directly 

attributable and traceable to any single 

charging port. 

(2) Under paragraph (b)(3) of this 

section, B’s tentative section 30C credit 

for each single item of 30C property 

(each charging port) is the sum of the 

cost of that single item of 30C property 

(each charging port), the cost of directly 

attributable and traceable associated 

property, and the ratable share of the 

cost of other associated property 

multiplied by the applicable percentage 

as described in paragraph (a)(2) of this 

section (6% or 30%, depending on 

whether the PWA requirements are 

satisfied). 

(3) B should therefore calculate a 

separate section 30C credit for each 

single item of 30C property (that is, each 

of the 20 DCFC charging ports and each 

of the 20 AC charger charging ports). 

Because each of the 10 DCFCs costs 

$30,000 and each has 2 charging ports, 

the cost of each DCFC port is $15,000 

($30,000 ÷ 2). Similarly, because each of 

the 10 AC chargers costs $10,000 and 

each has 2 charging ports, the cost of 

each AC charger charging port is $5,000 

($10,000 ÷ 2). To calculate the credit, B 

should add the cost of the charging port 

($15,000 for the DCFC ports and $5,000 

for the AC charger charging ports) to the 

allocable costs of the associated 

properties. Because each pedestal costs 

$1,000 and supports a single charger 

that has 2 ports, the cost attributable to 

each port (both the DCFC and AC 

charger charging ports) is $500 ($1,000 

÷ 2). With respect to the properties 


lotter on DSK11XQN23PROD with PROPOSALS1
76776 Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 

whose costs are not directly attributable 

and traceable to any single port, B must 

allocate their costs according to each 

port’s ratable share of B’s total cost for 

the 40 ports. Because the 20 DCFC ports 

cost a total of $300,000 (20 × $15,000) 

and the 20 AC charger charging ports 

cost only $100,000 in total (20 × $5,000), 

B should allocate 75% of these costs to 

the 20 DCFC ports and 25% of these 

costs to the AC charger charging ports. 

Therefore, $1,875 (($50,000 × 75%) ÷ 

20) of the cost of the electric panel and 

conduit/wiring is attributable to each of 

the 20 DCFC charging ports, and $625 

(($50,000 × 25%) ÷ 20) is attributable to 

each of the 20 AC charger ports. 

Similarly, the cost of the smart charge 

management system is allocated in the 

same ratio, with $937.50 (($25,000) × 

75%) ÷ 20) allocated to each DCFC port, 

and $312.50 (($25,000 × 25%) ÷ 20) to 

each AC charger charging port. 

(4) Accordingly, If B does not meet 

the PWA requirements, B’s tentative 

section 30C credit for each DCFC port is 

$18,312.50 ($15,000 + $500 + $1875 + 

$937.50) multiplied by the 6% 

applicable rate, which equals $1,098.75, 

and the section 30C credit for each AC 

charger charging port is $6,437.50 

($5,000 + $500 + $625 + $312.50) 

multiplied by the 6% applicable rate, 

which equals $386.25. Because both 

$1,098.75 and $386.25 are less than the 

$100,000 credit limit for depreciable 

property under paragraph (a)(4)(i)(A) of 

this section, the final section 30C credit 

for each DCFC port is also $1,098.75, 

and the final section 30C credit for each 

AC charger charging port is also 

$386.25. B’s total section 30C credit is 

$29,700 ($21,975 + $7,725), the sum of 

the section 30C credit for each charging 

port that B placed in service ($1,098.75 

× 20) + ($386.25 × 20) in the taxable 

year. 

(5) If B meets the PWA requirements, 

B’s tentative section 30C credit for each 

DCFC port is $18,312.50 multiplied by 

the increased applicable percentage 

(30%) under paragraph (b)(3)(i) of this 

section, which equals $5,493.75, and its 

tentative section 30C credit for each AC 

charger charging port is $6,437.50 

multiplied by 30%, or $1,931.25. 

Because both $5,493.75 and $1,931.25 

are less than the $100,000 credit limit 

for depreciable property under 

paragraph (a)(4)(i)(A) of this section, the 

final section 30C credit for each DCFC 

port is also $5,493.75 and the final 

section 30C credit for each AC charger 

charging port is also $1,931.25. B’s total 

section 30C credit is $148,500, the sum 

of the section 30C credit for the 20 

DCFC ports that B placed in service 

($5,493.75 × 20 = $109,875) plus the 

sum of the section 30C credit for the 20 

AC charger charging ports that B placed 

in service ($1,931.25 × 20 = $38,625) 

during the taxable year. The fact that 

this total credit exceeds the $100,000 

limit is not relevant because section 

30C(b)(1) and paragraph (a)(4)(i)(A) of 

this section provide that the $100,000 

limit applies on a per-item basis and not 

as an aggregate limit. 

(8) Example 8—(i) Facts. The facts are 

the same as paragraph (e)(4) of this 

section (Example 4), except that B 

spends $100,000 improving the land (for 

example, grading the land, installing a 

drainage system, and installing a paved 

surface). B also spends $15,000 on fees 

related to permitting improvements to 

the land. Finally, B spends $5,000 on 

‘‘EV parking only’’ signs and striping on 

the pavement needed for the EV to 

access the charger. 

(ii) Analysis. The costs for improving 

the land, associated permitting fees, and 

signs and striping are not 30C property 

because such costs are not functionally 

interdependent with the chargers or an 

integral part of the chargers. See 

§ 1.30C–1(b)(14) and (15). Therefore, the 

costs that B incurred to improve the 

land, to add the signage, and to stripe 

the pavement would not change the 

amount of the section 30C credit that B 

may claim. 

(9) Example 9—(i) Facts. The facts are 

the same as paragraph (e)(4) of this 

section (Example 4), except that B also 

installs and places in service a battery 

energy storage system as a backup 

source of electricity during power 

outages and to moderate electricity 

pricing. The battery energy storage 

system receives, stores, and delivers 

energy for conversion to electricity, and 

is located on the same or immediately 

adjacent physical address as the 

chargers and charging ports. The battery 

storage system is only used to support 

the chargers and does not provide 

electricity for any other purpose. The 

battery energy storage system costs 

$20,000. 

(ii) Analysis—(A) 30C property. The 

battery energy storage system 

constitutes 30C property under § 1.30C– 

1(b)(1)(i)(B) because it is for the 

recharging of motor vehicles, 

(specifically, it is an electrical energy 

storage property described in § 1.30C– 

1(25)(iii)), and it is located at the point 

where motor vehicles are recharged 

under § 1.30C–1(b)(16)(ii) because its 

located on the same or immediately 

adjacent physical address as B’s 

chargers. 

(B) Calculation of the credit. (1) The 

battery energy storage system is a single 

item of 30C property under paragraph 

(b)(1)(iii) of this section, and it 

constitutes a separate single item of 30C 

property from B’s charging ports and the 

properties associated with the charging 

ports. Therefore, B should calculate the 

section 30C credit for the battery storage 

system separately from its credit arising 

from its costs for these other properties. 

B also should not allocate the cost of the 

battery energy storge system among the 

charging ports. 

(2) Accordingly, if B does not meet 

the PWA requirements, B’s tentative 

section 30C credit for the battery energy 

storage system is $1,200 ($20,000 × 6%). 

Because this $1,200 amount is less than 

the $100,000 credit limit for depreciable 

property under paragraph (a)(4)(i)(A) of 

this section, the final section 30C credit 

for the battery energy storage system is 

also $1,200. If B meets the PWA 

requirements, B’s tentative section 30C 

credit for the battery energy storage 

system is $6,000 ($20,000 × 30%). 

Because this $6,000 amount is less than 

the $100,000 credit limit for depreciable 

property under paragraph (a)(4)(i)(A) of 

this section, the final section 30C credit 

for the battery energy storage system is 

also $6,000. It would not be relevant if 

B claimed $100,000 or more in section 

30C credits for other items of 30C 

property because section 30C(b)(1) and 

paragraph (a)(4)(i)(A) of this section 

provide that the $100,000 limit applies 

on a per-item basis and not as an 

aggregate limit. 

(3) If B claims a section 30C credit for 

the battery energy storage system, this 

would render such storage property to 

be primarily used in the transportation 

of goods or individuals and not for the 

production of electricity. As a result, the 

property would not satisfy the 

requirements under section 48 or 48E. 

(10) Example 10—(i) Facts. The facts 

are the same as paragraph (e)(4) of this 

section (Example 4), except that B 

participates in a local electric company 

incentive program. The electric 

company installs the electric panel, 

conduit/wiring, and load management 

system, for which the electric company 

retains ownership. 

(ii) Analysis—(A) 30C property. The 

DCFCs, pedestals, electric panel, 

conduit/wiring, and the smart charge 

management system all constitute 30C 

property, as explained in the analysis 

under paragraph (e)(4) of this section 

(Example 4). However, B does not own 

the electric panel, conduit/wiring, and 

load management system, and, as a 

result, may not include the cost of that 

property in calculating B’s section 30C 

credit. B would only calculate the credit 

based on the 30C property the taxpayer 

owns, which is the DCFCs and 

pedestals. The electric company that 

owns the electric panel, conduit/wiring, 

and load management system cannot 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 76777 

claim a section 30C credit for such 

property because it does not own the 

charging ports and therefore does not 

own a single item of 30C property, 

which is necessary to claim a section 

30C credit. See paragraph (b)(1) of this 

section. 

(B) Calculation of the credit. (1) 

Under paragraph (b)(3) of this section, 

B’s tentative section 30C credit for each 

single item of 30C property (each 

charging port) is the sum of the cost of 

that single item of 30C property (each 

charging port), the cost of directly 

attributable and traceable associated 

property, and the ratable share of the 

cost of other associated property 

multiplied by the applicable percentage 

as described in paragraph (a)(2) of this 

section (6% or 30%, depending on 

whether the PWA requirements are 

satisfied). 

(2) To calculate the credit for each 

single item of 30C property (each of the 

40 charging ports) B would add the cost 

of each charging port ($15,000 ($30,000 

÷ 2)) to the cost ($500 ($1,000 ÷ 2)) of 

directly attributable and traceable 

associated property (that is, the 

respective pedestal). The sum of these 

costs is $15,500 for each charging port. 

If B does not meet the PWA 

requirements, B’s tentative section 30C 

credit for each charging port is $15,500 

multiplied by the applicable percentage 

(6% under paragraph (b)(3)(i)) of this 

section), which equals $930 per single 

item. Because this $930 amount is less 

than the $100,000 credit limit for 

depreciable property under paragraph 

(a)(4)(i)(A) of this section, the final 

section 30C credit for each charging port 

is $930. The total section 30C credit for 

B, if B does not meet the PWA 

requirements is $37,200 ($930 × 40). 

(3) If B meets the PWA requirements, 

B’s tentative section 30C credit for each 

charging port is $15,500 multiplied by 

the increased applicable percentage 

(30%), which equals $4,650 per single 

item. B’s total section 30C credit, in this 

example, is $186,000 ($4,650 × 40). The 

fact that this total credit exceeds the 

$100,000 limit is not relevant because 

section 30C(b)(1) and paragraph 

(a)(4)(i)(A) of this section provide that 

the $100,000 limit applies on a per-item 

basis and not as an aggregate limit. 

(11) Example 11—(i) Facts. The facts 

are the same as paragraph (e)(4) of this 

section (Example 4), except that B 

engages with a local utility company 

providing charging services that installs 

the 30C property described in paragraph 

(e)(4) (Example 4) at the same physical 

address in the same taxable year at the 

utility company’s expense, for which 

the utility company retains ownership. 

(ii) Analysis. As the owner of the 30C 

property, the local utility company, and 

not B, would be eligible for a section 

30C credit for such property, assuming 

all other statutory and regulatory 

requirements are met. The remainder of 

the analysis is the same as set forth in 

paragraph (e)(4) of this section (Example 

4). 

(12) Example 12—(i) Facts. C owns a 

gasoline station. C decides to add retail 

hydrogen fueling capability to its 

existing gasoline station to facilitate the 

refueling of hydrogen fuel cell vehicles. 

C installs a bulk hydrogen storage tank 

($900,000), cryogenic pumps 

($5,000,000), evaporators associated 

with bulk storage ($700,000), cascade 

storage system ($1,300,000), electrical 

supply equipment used only for the 

hydrogen equipment ($150,000), a highconductivity concrete pad (necessary to 

prevent static discharge during fueling), 

firewalls, and piping (collectively, 

$550,000) and two hydrogen dispensers 

($160,000 each) which include the 

dispensing control valves, connection 

hoses, hydrogen meters, and nozzles. 

All property is owned by C and is 

located at the point of refueling, 

meaning it is at the same or immediately 

adjacent physical address. All costs 

include labor costs. The property is 

property of a character subject to 

depreciation. All property is placed in 

service in the year it is installed, in an 

eligible census tract as described in 

paragraph (c) of this section. 

(ii) Analysis—(A) 30C property. The 

bulk hydrogen storage tank, cryogenic 

pumps, evaporators, cascade storage 

system, electrical supply equipment, 

high-conductivity concrete pad, 

firewalls, piping, and two hydrogen 

dispensers are 30C property under 

§ 1.30C–1(b)(1). The cryogenic pumps 

and electrical supply equipment are 

functionally interdependent with the 

cascade high-pressure storage tank 

under § 1.30C–1(b)(1)(i)(A) and (b)(14). 

The high-conductivity concrete pad, 

firewalls, and piping are functionally 

interdependent property with the 

dispensers, also under § 1.30C– 

1(b)(1)(i)(A) and (b)(14). Collectively, 

this property is refueling property under 

§ 1.30C–1(b)(1)(i)(A). The evaporators 

are an integral part associated with the 

bulk hydrogen storage tank under 

§ 1.30C–1(b)(1)(i)(B) and (b)(15). The 

hydrogen storage system, cryogenic 

pumps, evaporators, cascade storage 

system, electrical supply equipment, 

high-conductivity concrete pad, 

firewalls, piping, and two hydrogen fuel 

dispensers meet the other requirements 

of § 1.30C–1(b)(1)(iii) because the 

properties are each subject to an 

allowance for depreciation, the original 

use of the properties begins with C, and 

the properties are placed in service in 

an eligible census tract as described in 

paragraph (c) of this section. 

(B) Calculation of the credit. (1) The 

bulk hydrogen storage tank system and 

the cascade high-pressure storage 

system are each qualified alternative 

fuel storage property and each is a 

single item of 30C property under 

§ 1.30C–1(b)(1) and paragraph (b)(1) of 

this section. Although the cascade highpressure storage system is comprised of 

multiple storage tanks, the system is 

treated as a single item of alternative 

fuel storage property. The dispensers are 

each single items of 30C property 

pursuant to § 1.30C–1(b)(1) and 

paragraph (b)(1) of this section. 

(2) Under paragraph (b)(3) of this 

section, the tentative section 30C credit 

for the bulk hydrogen storage tank is the 

sum of the cost of the bulk hydrogen 

storage tank plus the cost of the 

evaporators (that is, the only associated 

property that is directly attributable and 

traceable to the bulk hydrogen storage 

tank), multiplied by the applicable 

percentage (6% or 30%, depending on 

whether the PWA requirements are 

satisfied) pursuant to section 30C(a). 

Therefore, the tentative section 30C 

credit for the bulk hydrogen storage tank 

is $96,000 (($900,000 + $700,000) × 6%) 

if the PWA requirements are not met, or 

$480,000 (($900,000 + $700,000) × 30%) 

if the PWA requirements are met. Under 

paragraph (b)(3) of this section, the 

section 30C credit for the bulk hydrogen 

storage tank, after applying the $100,000 

limitation in paragraph (a)(4)(i)(A) of 

this section, is $96,000 if the PWA 

requirements are not met, or $100,000 if 

the PWA requirements are met. 

(3) Under paragraph (b)(3) of this 

section, the costs taken into account in 

calculating the tentative section 30C 

credit for the cascade high-pressure 

storage system include the costs of any 

associated property that is directly 

attributable and traceable to the cascade 

high-pressure storage system, or a 

ratable share of the costs if the 

associated property if it is directly 

attributable and traceable to more than 

one item of property. The functionally 

interdependent property associated with 

the cascade high-pressure storage tank 

(that is, the cryogenic pumps and 

electrical supply equipment) is directly 

attributable and traceable to the cascade 

high-pressure storage system and no 

other item of property. Therefore, the 

tentative section 30C credit for the 

cascade high-pressure storage system is 

the sum of the costs of the cascade 

storage system and cryogenic pumps, 

and electrical supply equipment 

($1,300,000 + $5,000,000 + $150,000), 


lotter on DSK11XQN23PROD with PROPOSALS1
76778 Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 

multiplied by the applicable percentage 

(6% or 30%, depending on whether the 

PWA requirements are satisfied). 

Therefore, the tentative section 30C 

credit for the cascade high-pressure 

storage system is $387,000 (($1,300,000 

+ $5,000,000 + $150,000) × 6%) if the 

PWA requirements are not met, or 

$1,935,000 (($1,300,000 + $5,000,000 + 

$150,000) × 30%) if the PWA 

requirements are met. Under paragraph 

(b)(3) of this section, the section 30C 

credit for the cascade high-pressure 

storage system, after applying the 

$100,000 limitation in paragraph 

(a)(4)(i)(A) of this section, is $100,000 if 

the PWA requirements are not met, or 

$100,000 if the PWA requirements are 

met. 

(4) The high-conductivity concrete 

pad, firewalls, and piping are 

functionally interdependent with the 

fuel dispensers; thus, the highconductivity concrete pad, firewalls, 

and piping are associated property 

under paragraph (b)(2) of this section 

with respect to the dispensers. Because 

the high-conductivity concrete pad, 

firewalls, and piping are directly 

attributable and traceable to both fuel 

dispensers and no other single item of 

30C property, half of the costs are 

allocated to each dispenser under 

paragraph (b)(2)(ii) of this section. 

Therefore, under paragraph (b)(3) of this 

section, the tentative section 30C credit 

for each fuel dispenser is the sum of the 

cost of each the hydrogen dispenser and 

half the cost of the high-conductivity 

concrete pad, firewalls, and piping are 

multiplied by the applicable percentage 

(6% or 30%, depending on whether the 

PWA requirements are satisfied). 

Therefore, the tentative section 30C 

credit for each fuel dispenser is $26,100 

($160,000 + ($550,000 ÷ 2) × 6%) if the 

PWA requirements are not met, or 

$130,500 (($160,000 + ($550,000 ÷ 2)) × 

30%) if the PWA requirements are met. 

Under paragraph (b)(3) of this section, 

the final section 30C credit for each fuel 

dispenser, after applying the $100,000 

limitation in paragraph (a)(4)(i)(A) of 

this section, is $26,100 if the PWA 

requirements are not met, or $100,000 if 

the PWA requirements are met. 

(5) If C does not meet the PWA 

requirements, C’s total section 30C 

credit for the year is $96,000 for the 

bulk hydrogen storage tank, plus 

$100,000 for the cascade high-pressure 

storage tank, plus $26,100 for each fuel 

dispenser, for a total of $248,200. If C 

meets the PWA requirements, C’s total 

section 30C credit for the year is 

$100,000 for the bulk hydrogen storage 

tank, plus $100,000 for the cascade 

high-pressure storage tank, plus 

$100,000 for each fuel dispenser, for a 

total of $400,000. The fact that this total 

credit exceeds the $100,000 limit is not 

relevant because section 30C(b)(1) and 

paragraph (a)(4)(i)(A) of this section 

provide that the $100,000 limit applies 

on a per-item basis and is not an 

aggregate limit. 

(13) Example 13—(i) Facts. G installs 

a time-fuel compressed natural gas 

(CNG) station to refuel its fleet of heavyduty CNG trucks at a central lot near its 

warehouse. The station has 10 fuel 

dispensers. From the existing utility gas 

meter, G installs a gas line, dryer, filter, 

and gas compressor, which costs 

$300,000. The gas compressor flows to 

buffer storage, which costs $100,000. 

The buffer storage flows through a 

temperature compensation unit, which 

costs $50,000, before flowing through to 

the dispensers, which dispense the 

CNG. Each fuel dispenser is capable of 

fueling at or above the dispenser’s 

minimum rate of fueling, and has one 

hose and nozzle, which costs $10,000 

per fuel dispenser. All property is 

owned by G and is located at the point 

of refueling, meaning it is on the same 

or immediately adjacent physical 

address. All costs include labor costs. 

The address where G installs these 

properties is located in an eligible 

census tract as described in paragraph 

(c) of this section. 

(ii) Analysis—(A) 30C property. The 

gas line, dryer, filter, gas compressor, 

buffer storage, temperature 

compensation unit, and fuel dispensers 

are 30C property pursuant to § 1.30C– 

1(b)(1) and paragraph (b)(1) of this 

section. The gas line, dryer, filter, gas 

compressor, and temperature 

compensation unit are functionally 

interdependent with the dispensers 

pursuant to § 1.30C–1(b)(14). Together, 

these items of property constitute 

refueling property under § 1.30C– 

1(b)(1)(i)(A). Each fuel dispenser, the 

gas line, dryer, filter, gas compressor, 

buffer storage, and temperature 

compensation unit, all meet the other 

requirements of § 1.30C–1(b)(1)(iii) 

because the properties are each subject 

to an allowance for depreciation, the 

original use of the properties begins 

with G, and the properties are placed in 

service (as described in paragraph (b)(6) 

of this section) in an eligible census 

tract as described in paragraph (c) of 

this section. 

(B) Calculation of the credit. (1) Each 

fuel dispenser is a single item of 30C 

property pursuant to paragraph (b)(1)(ii) 

of this section and § 1.30C–1(b)(12). The 

gas line, dryer, filter, gas compressor, 

and temperature compensation unit are 

each associated property pursuant to 

paragraph (b)(2) of this section, and 

their cost is allocated ratably to each 

dispenser (($300,000 + $50,000) ÷ 10 = 

$35,000). The buffer storage is a single 

item of 30C property pursuant to 

§ 1.30C–1(b)(1) and paragraph (b)(1) of 

this section. 

(2) If G does not meet the PWA 

requirements, under paragraph (b)(3)(i) 

of this section, the tentative section 30C 

credit for each fuel dispenser is the sum 

of the cost of that single item of 30C 

property (that is, the fuel dispenser) 

($10,000) and the ratable share of the 

cost of other associated property 

($35,000) multiplied by the applicable 

percentage (6%), or $2,700, (($10,000 + 

$35,000) × 6% = $2,700). The tentative 

section 30C credit for the cost of the 

buffer storage is the cost of the buffer 

storage multiplied by the applicable 

percentage (6%) or $6,000 ($100,000 × 

6% = $6,000). Under paragraph (b)(3) of 

this section, after applying the $100,000 

limitation in paragraph (a)(4)(i)(A) of 

this section, if the PWA requirements 

are not met, the final section 30C credit 

for each fuel dispenser is $2,700 and the 

final section 30C credit for the buffer 

storage is $6,000. The total section 30C 

credit is $33,000 (($2,700 × 10) + 

$6,000)). 

(3) If G meets the PWA requirements, 

the tentative section 30C credit under 

paragraph (b)(3) of this section for each 

dispenser is $13,500, (($10,000 + 

$35,000) × 30% = $13,500). The 

tentative section 30C credit for the 

buffer storage is $30,000 ($100,000 × 

30% = $30,000). Under paragraph (b)(3) 

of this section, after applying the 

$100,000 limitation in paragraph 

(a)(4)(i)(A) of this section, if the PWA 

requirements are met, the final section 

30C credit for each fuel dispenser is 

$13,500 and the final section 30C credit 

for the buffer storage is $30,000. The 

total section 30C credit is $165,000 

(($13,500 × 10) + $30,000)). The fact that 

this total credit exceeds the $100,000 

limit is not relevant because the 

$100,000 limit applies on a per-item 

basis and is not an aggregate limit. 

(14) Example 14—(i) Facts. The facts 

are the same as paragraph (e)(13) of this 

section (Example 13), except that G also 

installs a local utility line ($400,000) 

and gas utility meter ($5,000) to service 

its CNG refueling station. The portion of 

cost of the local utility line on the same 

or immediately adjacent physical 

address as the CNG dispensers is 

$100,000. The gas utility meter is also 

on the same or immediately adjacent 

physical address as the CNG dispensers. 

All property is owned by G. All costs 

include labor costs. Each of the above 

properties is property of a character 

subject to depreciation and is placed in 

service at the time it is installed. The 

physical address where G installs a 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 76779 

portion of the local utility line and gas 

utility meter is located in an eligible 

census tract as described in paragraph 

(c) of this section. 

(ii) Analysis—(A) 30C property. The 

portion of the local utility line that is on 

the same or immediately adjacent 

physical address as the CNG dispensers 

and gas utility meter are 30C property 

pursuant to §§ 1.30C–1(b)(1) and 

paragraph (b)(1) of this section. The 

portion of the local utility line that is on 

the same or immediately adjacent 

physical address as the CNG dispensers 

is located at the point of refueling under 

§ 1.30–1(b)(16). (The remaining portion 

is not located at the point of refueling 

and is therefore not 30C property.) The 

gas meter is also located at the point of 

refueling under § 1.30–1(b)(16) because 

it is on the same or immediately 

adjacent physical address as the CNG 

dispensers. Further, the portion of the 

local utility line that is on the same or 

immediately adjacent physical address 

as the CNG dispensers and the gas meter 

constitute integral part property with 

respect to the fuel dispensers under 

§ 1.30C–1(b)(15). Together with the gas 

line, dryer, filter, gas compressor, and 

temperature compensation unit, the 

utility line and the gas meter are 

refueling property under § 1.30C– 

1(b)(1)(i)(A). 

(B) Calculation of the credit. (1) Each 

fuel dispenser is a single item of 30C 

property pursuant to paragraph (b)(1)(ii) 

of this section and § 1.30C–1(b)(12). The 

local utility line and gas utility meter 

are each associated property pursuant to 

paragraph (b)(2) of this section. Their 

costs are allocated ratably to each 

dispenser (($100,000 + $5,000) ÷ 10 = 

$10,500) under paragraph (b)(2)(ii) of 

this section. 

(2) If G does not meet the PWA 

requirements, under paragraph (b)(3) of 

this section, the tentative section 30C 

credit for each fuel dispenser is the sum 

of the dispenser, the ratable cost of the 

gas line, dryer, filter, the gas compressor 

and temperature compensation unit, 

and the ratable share of the local utility 

line and gas utility meter, multiplied by 

the applicable percentage (6%), or 

$3,330, (($10,000 + $35,000 + $10,500) 

× 6% = $3,330). The tentative section 

30C credit for the cost of the buffer 

storage is $6,000 ($100,000 × 6% = 

$6,000). Under paragraph (b)(3) of this 

section, after applying the $100,000 

limitation in paragraph (a)(4)(i)(A) of 

this section, if the PWA requirements 

are not met, the final section 30C credit 

for each fuel dispenser is $3,330 and the 

final section 30C credit for the buffer 

storage is $6,000. The total section 30C 

credit is $39,330 (($3,330 × 10) + 

$6,000)). 

(3) If G meets the PWA requirements, 

the tentative section 30C credit for each 

dispenser is $16,650, (($10,000 + 

$35,000 + $10,500) × 30% = $16,650). 

The tentative section 30C credit for the 

cost of the buffer storage is $30,000 

($100,000 × 30% = $30,000). Under 

paragraph (b)(3) of this section, after 

applying the $100,000 limitation in 

paragraph (a)(4)(i)(A) of this section, if 

the PWA requirements are met, the final 

section 30C credit for each fuel 

dispenser is $16,650 and the final 

section 30C credit for the buffer storage 

is $30,000. The total section 30C credit 

is $196,500 (($16,650 × 10) + $30,000)). 

The fact that this total credit exceeds the 

$100,000 limit is not relevant because 

the $100,000 limit applies on a per-item 

basis and is not an aggregate limit. 

(15) Example 15—(i) Facts. W installs 

a refueling station that is used to refuel 

forklift trucks with qualified alternative 

fuel. 

(ii) Analysis. The refueling station is 

not 30C property under § 1.30C–1(b)(1) 

and paragraph (b)(1) of this section. 

Section 1.30C–1(b)(1)(i)(A) requires that 

30C property must be used to store or 

dispense qualified alternative fuel at the 

point where the fuel is dispensed into 

the fuel tank of a ‘‘motor vehicle.’’ 

Although a forklift truck occasionally 

may be operated on public roads, it is 

manufactured primarily for hauling 

loads in factories, warehouses, and 

other similar settings, and not for use on 

public streets, roads, and highways. 

Therefore, a forklift truck is not a 

‘‘motor vehicle’’ for purposes of the 

section 30C credit under § 1.30C– 

1(b)(17). 

(f) Claim requirements. A taxpayer 

claiming the section 30C credit must 

attach a Form 8911, Alternative Fuel 

Vehicle Refueling Property Credit, or 

any successor form required by the IRS, 

completed in accordance with the form 

instructions, and file it with the return 

on which the section 30C credit is 

claimed. 

(g) Applicability date. This section 

applies to property placed in service in 

taxable years ending after [date of 

publication of final regulations in the 

Federal Register]. 

■ Par. 3. Section 1.30C–3 is revised to 

read as follows: 

§ 1.30C–3 Rules relating to the increased 

credit amount for prevailing wage and 

apprenticeship. 

(a) In general. If any qualified 

alternative fuel vehicle refueling project 

(as defined by section 30C(g)(1)(B)) (30C 

project) placed in service during the 

taxable year satisfies the requirements 

in paragraph (b) of this section, the 

credit determined under section 30C(a) 

for any 30C property of a character 

subject to an allowance for depreciation 

that is part of such 30C project is 

multiplied by five. 

(b) 30C project requirements—(1) In 

general. A 30C project satisfies the 

requirements of this paragraph (b) if it 

is one of the following— 

(i) A project the construction of which 

began prior to January 29, 2023; or 

(ii) A project that meets the prevailing 

wage requirements of section 45(b)(7) of 

the Code and § 1.45–7, the 

apprenticeship requirements of section 

45(b)(8) and § 1.45–8, and the 

recordkeeping and reporting 

requirements of § 1.45–12, all with 

respect to the construction of any 30C 

property within the meaning of section 

30C and the section 30C regulations 

before such 30C property is placed in 

service. 

(2) Determination of a project. 

Multiple 30C properties will be treated 

as a single 30C project if the items of 

property are constructed and operated 

on a contiguous piece of land, owned by 

a single taxpayer (subject to the related 

taxpayer rule provided in paragraph 

(b)(3) of this section), placed in service 

in a single taxable year, and one or more 

of the following factors is present: 

(i) The properties are described in one 

or more common environmental or 

other regulatory permits; 

(ii) The properties are constructed 

pursuant to a single master construction 

contract; or 

(iii) The construction of the properties 

is financed pursuant to the same loan 

agreement. 

(3) Related taxpayers—(i) Definition. 

For purposes of this section, the term 

related taxpayers means members of a 

group of trades or businesses that are 

under common control (as defined in 

§ 1.52–1(b)). 

(ii) Related taxpayer rule. For 

purposes of this section, related 

taxpayers are treated as one taxpayer in 

determining whether multiple 

properties are treated as a 30C project 

with respect to which a section 30C 

credit may be determined. 

(c) Coordination with 30C(e)(2) and 

§ 1.30C–4(c). If a person who sells 30C 

property, the use of which is described 

in section 50(b)(3) or (4) and which is 

not subject to a lease, is treated as the 

taxpayer that placed such property in 

service under section 30C(e)(2), such 

person will be treated as the taxpayer 

responsible for satisfying the 

recordkeeping and reporting 

requirements of § 1.45–12. 

(d) Examples. The following examples 

illustrate the rules of this section. 

(1) Example 1—(i) Facts. D owns and 

operates electric charging stations. In 


lotter on DSK11XQN23PROD with PROPOSALS1
76780 Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 

Year 1, D places in service five chargers, 

each with one charging port, on Parcel 

1. In the same year, D also places in 

service three chargers, each with one 

charging port, on Parcel 2. Parcel 1 and 

Parcel 2 are a mile apart from each 

other. D submits a single environmental 

permit covering both charging stations 

and obtains financing pursuant to the 

same loan agreement. D meets the 

requirements of section 30C(g) and this 

section (that is, the PWA requirements) 

for the chargers installed on Parcel 1 but 

does not meet the PWA requirements for 

the chargers installed on Parcel 2. The 

chargers installed on Parcel 1 and Parcel 

2 are depreciable property and meet all 

other requirements to be 30C property. 

(ii) Analysis. Under paragraph (b)(2) 

of this section, the chargers placed in 

service on Parcel 1 are treated as a 

separate 30C project from the chargers 

placed in service on Parcel 2 because 

the properties are not on contiguous 

piece of land. Therefore, under § 1.30C– 

2(a)(2)(ii), D is eligible for a credit of 30 

percent of the cost of the five chargers 

placed in service on Parcel 1, but only 

6 percent of the cost of the three 

chargers placed in service on Parcel 2 

under § 1.30C–2(a)(2)(i). 

(2) Example 2—(i) Facts. The facts are 

the same as paragraph (d)(1) of this 

section (Example 1), except that Parcel 

1 and Parcel 2 are contiguous pieces of 

land. 

(ii) Analysis. Under paragraph (b)(2) 

of this section, the chargers installed on 

Parcel 1 and Parcel 2 are treated as a 

single 30C project because they are 

constructed on a contiguous piece of 

land, are owned, and operated by a 

single taxpayer, placed in service by a 

single taxpayer in a single year, 

described in a common environmental 

permit, and financed pursuant to the 

same loan agreement. Therefore, 

because D did not meet the PWA 

requirements with respect to the 

chargers placed in service in parcel 2, D 

is eligible for only the 6 percent credit 

for both the parcel 1 and parcel 2 

property under § 1.30C–2(a)(2)(i). 

(e) Applicability date. This section 

applies to property placed in service in 

taxable years ending after [date of 

publication of final regulations in the 

Federal Register]. 

■ Par. 4. Section 1.30C–4 is added to 

read as follows: 

§ 1.30C–4 Special rules. 

(a) No credit allowable in certain 

circumstance—(1) Property used outside 

the United States. Except as provided in 

paragraph (a)(2) of this section, pursuant 

to sections 30C(e)(3) and 50(b)(1) of the 

Code, no section 30C credit is allowable 

with respect to any property placed in 

service for use predominantly outside 

the United States. 

(2) Property placed in service in a 

United States territory. Pursuant to 

sections 30C(e)(3), 50(b)(1) and 

168(g)(4)(G) of the Code, paragraph 

(a)(1) of this section does not apply to 

30C property that is owned by a 

domestic corporation or by a United 

States citizen (other than a citizen 

entitled to the benefits of section 931 or 

933 of the Code) and that is used 

predominantly in a territory of the 

United States by such a corporation or 

such a citizen, or by a corporation 

created or organized in, or under the 

law of, a territory of the United States. 

(3) Section 179. No section 30C credit 

is allowable with respect to the portion 

of the cost of any property taken into 

account under section 179 of the Code. 

(b) Recapture—(1) In general. The 

rules in this paragraph (b) provide for 

recapturing the benefit of any allowable 

section 30C credit with respect to any 

property that ceases to be property 

eligible for such credit. If a recapture 

event occurs with respect to a taxpayer’s 

30C property, the taxpayer must include 

the recapture amount in taxable income 

under chapter 1 of the Code for the 

taxable year in which the recapture 

event occurs (recapture year). 

(2) Recapture event. A recapture event 

occurs if, within three years of the 

property being placed in service— 

(i) The taxpayer claiming the section 

30C credit modifies the property such 

that the property no longer qualifies as 

30C property; 

(ii) Unless the property is subject to 

section 6417(d)(2)(B) of the Code, the 

depreciable property (other than 

apportioned-use property) ceases to be 

used predominantly in a trade or 

business (that is, 50 percent or more of 

the use of the 30C property in a taxable 

year is for use other than in a trade or 

business); 

(iii) For apportioned-use property, the 

30C property completely ceases to be 

used in a trade or business, but 

continues to be used for personal use; or 

(iv) The taxpayer claiming the section 

30C credit sells or disposes of the 30C 

property and the taxpayer knows or has 

reason to know that the property will be 

used in a manner described in 

paragraph (b)(2)(i) or (ii) of this section. 

Any other sale or disposition (including 

a disposition by reason of an accident or 

other casualty) of 30C property is not a 

recapture event. 

(3) Property placed in service in a 

location that ceases to be in a qualified 

census tract. 30C property is not subject 

to the recapture provisions of this 

paragraph (b) solely because it is placed 

in service in a location that 

subsequently ceases to be in a qualified 

census tract. 

(4) Recapture amount—(i) In general. 

The recapture amount is generally equal 

to the benefit of the section 30C credit 

allowable multiplied by a fraction, the 

numerator of which is three minus the 

number of years prior to, but not 

including, the recapture year, and the 

denominator of which is three. 

(ii) Special rule for apportioned-use 

property. For purposes of the 

calculation described in paragraph 

(b)(4)(i) of this section with respect to 

apportioned-use property, the benefit of 

the section 30C credit is equal to the 

difference between the credit claimed 

by the taxpayer and the credit that 

would have been allowed if the 

apportioned-use property were used 

solely for personal use under § 1.30C– 

2(a)(2)(iii) (as limited by § 1.30C– 

2(a)(4)(i)(B)). 

(5) Basis adjustment. As of the first 

day of the recapture year, the basis of 

the 30C property is increased by the 

recapture amount. For 30C property that 

is of a character that is subject to an 

allowance for depreciation, including 

property subject to section 

6417(d)(2)(B), this increase in basis is 

recoverable over its remaining recovery 

period beginning as of the first day of 

the taxable year in which the recapture 

event occurs. 

(c) Property used by a tax-exempt or 

governmental entity—(1) In general. 

Except as provided in paragraph (c)(2) 

of this section, if a person sells 30C 

property, the use of which is described 

in section 50(b)(3) or (4) (generally, 

property used by certain tax-exempt 

organizations, governmental entities, or 

foreign persons or entities), such person 

or entity purchasing the property uses 

the property as described in section 

50(b)(3) or (4), the property is not 

subject to a lease, and the seller clearly 

discloses to the person or entity using 

such property in a document the 

amount of any credit allowable under 

section 30C(a) with respect to such 

property (determined without regard to 

section 30C(d)) and that the seller 

intends to claim such credit, then the 

seller is treated as the taxpayer that 

placed such property in service. For 

purposes of section 30C(d), property to 

which this paragraph (c)(1) applies will 

be treated as of a character subject to an 

allowance for depreciation. 

(2) Interaction with section 6417. If 

the person or entity using 30C property 

in a manner that would otherwise be 

considered as described in section 

50(b)(3) or (4) notifies the seller in 

writing of an intent to make an elective 

payment election pursuant to section 

6417(a) with respect to the section 30C 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 76781 

credit, then the use of the 30C property 

is treated as not being described in 

section 50(b)(3) or (4) for purposes of 

paragraph (c)(1) of this section. As a 

result, paragraph (c)(1) will not apply, 

meaning that the seller will not be 

treated as having placed the 30C 

property in service and cannot claim 

any credit allowable under section 

30C(a) with respect to such property. 

The section 30C credit will only be 

allowed to one taxpayer for the same 

30C property. 

(d) Dual-use property—(1) Dual use 

property used for dispensing or storing 

qualified alternative fuel and 

conventional fuel. In the case of dualuse property that is used to store and/ 

or dispense both qualified alternative 

fuel and conventional fuel, the cost of 

the dual-use property is taken into 

account in computing a taxpayer’s 

section 30C credit only to the extent 

such cost exceeds the cost of an 

equivalent conventional refueling 

property. For purposes of this paragraph 

(d)(1), equivalent conventional refueling 

property is conventional refueling 

property that is not used to store and/ 

or dispense qualified alternative fuel but 

is otherwise comparable to the dual-use 

property and can store and/or dispense 

the same amount of conventional fuel as 

the dual-use property. 

(2) Qualified alternative fuel storage. 

In the case of dual-use property that is 

used both to store qualified alternative 

fuel that is dispensed into the fuel tanks 

of motor vehicles at the location of the 

storage facility and to store fuel that is 

transported to other locations, the cost 

of the dual-use property is taken into 

account in computing a taxpayer’s 

section 30C credit only to the extent 

such cost exceeds the cost of a storage 

facility that is equivalent to the dual-use 

property except that it is used for the 

sole purpose of storing qualified 

alternative fuel that is transported to 

other locations and can store the same 

amount of qualified alternative fuel as 

the dual-use property stores for 

transport to other locations. 

(3) Dual use property used to store or 

transmit electricity for charging a motor 

vehicle and for other purposes. In the 

case of dual-use property that is used to 

store or transmit electricity both to 

charge a motor vehicle and for purposes 

other than charging a motor vehicle, the 

cost of the dual-use property is taken 

into account in computing the section 

30C credit only to the extent such cost 

exceeds the cost of equivalent property 

used for purposes other than charging a 

motor vehicle. 

(4) Example—(i) Facts. X, a qualified 

alternative fuel wholesaler and retailer, 

owns and operates retail qualified 

alternative fuel filling stations. X 

maintains a regional hub where it stores 

qualified alternative fuel that it 

transports to its retail filling stations, 

using tanker trucks, for sale to 

customers. In 2024, X places in service 

a new storage tank to store qualified 

alternative fuel and a new fuel 

dispenser at its regional hub. X uses the 

new fuel dispenser to fill the fuel tanks 

of its tanker trucks (meaning it uses the 

fuel to power the tanker trucks in 

addition to transporting the fuel to retail 

locations). Because the amount of fuel 

used to power the tanker trucks is 

minimal compared to the fuel 

transported to the retail locations, the 

storage tank has the same capacity as 

the tank that would have been used for 

the sole purpose of storing the qualified 

alternative fuel that is supplied to X’s 

customers. X’s regional hub is in a nonurban area census tract as described in 

§ 1.30C–2(c)(3). 

(ii) Analysis. The storage tank and 

dispenser are 30C property within the 

meaning of § 1.30C–1(b)(1). Specifically, 

they are refueling property within the 

meaning of § 1.30C–1(b)(1)(i)(A) because 

they are used to store and dispense 

qualified alternative fuel into the fuel 

tanks of X’s fuel tanker trucks. 

Additionally, the storage tank and 

dispenser meet the other requirements 

under § 1.30C–1(b)(1)(iii) because they 

are of a character subject to an 

allowance for depreciation (because X 

uses them in its trade or business), the 

original use of the property began with 

X, and X placed the property in service 

in an eligible census tract. However, the 

storage tank is dual-use property 

described in paragraph (d)(2) of this 

section because it is used both to store 

qualified alternative fuel that is 

dispensed into the fuel tanks of motor 

vehicles at the location of the storage 

facility (that is, the fuel used to power 

the tanker trucks) and to store fuel that 

is transported to other locations. Under 

paragraph (d)(2), the cost of the storage 

tank is taken into account in computing 

the section 30C credit only to the extent 

that cost exceeds the cost of the storage 

tank that would have been used for the 

sole purpose of storing the qualified 

alternative fuel that is transported to X’s 

retail filling stations. Because no 

increase in the capacity of the storage 

tank is needed, none of the storage 

tank’s cost is taken into account in 

computing the amount of the section 

30C credit. 

(e) Applicability date. This section 

applies to property placed in service in 

taxable years ending after [date of 

publication of final regulations in the 

Federal Register]. 

■ Par. 5. Section 1.48–9, as proposed to 

be revised at 88 FR 82188 (November 

22, 2023), is further amended by adding 

paragraph (e)(10)(vi) to read as follows: 

§ 1.48–9 Definition of energy property. 

* * * * * 

(e) * * * 

(10) * * * 

(vi) Property primarily used in the 

transportation of goods or individuals 

and not for the production of electricity. 

Energy storage property is primarily 

used in the transportation of goods or 

individuals and not for the production 

of electricity, and therefore is not energy 

storage technology eligible for the 

section 48 credit, if a credit is claimed 

under section 30C for such property. 

* * * * * 

■ Par. 6. Section 1.48E–0, as proposed 

to be added at 89 FR 47792 (June 3, 

2024), is further amended by adding an 

entry for § 1.48E–2(g)(6)(iv), in 

numerical order, to read as follows: 

§ 1.48E–0 Table of contents. 

* * * * * 

§ 1.48E–2 Qualified investments in 

qualified facilities and EST for purposes 

of section 48E. 

* * * * * 

(g) * * * 

(6) * * * 

(iv) Property primarily used in the 

transportation of goods or individuals and 

not for the production of electricity. 

* * * * * 

■ Par. 7. Section 1.48E–2, as proposed 

to be added at 89 FR 47792 (June 3, 

2024), is further amended by adding 

paragraph (g)(6)(iv) to read as follows: 

§ 1.48E–2 Qualified investments in 

qualified facilities and EST for purposes of 

section 48E. 

* * * * * 

(g) * * * 

(6) * * * 

(iv) Property primarily used in the 

transportation of goods or individuals 

and not for the production of electricity. 

Energy storage property is primarily 

used in the transportation of goods or 

individuals and not for the production 

of electricity, and therefore is not EST 

eligible for the section 48E credit, if a 

credit is claimed under section 30C for 

such property. 

* * * * * 

■ Par. 8. Section 1.6417–0 is amended 

by revising the entry for § 1.6417–6(e) to 

read as follows: 

§ 1.6417–0 Table of contents. 

* * * * * 

§ 1.6417–6 Special rules. 

* * * * * 

(e) Applicability dates. 


lotter on DSK11XQN23PROD with PROPOSALS1
76782 Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Proposed Rules 

■ Par. 9. Section 1.6417–6 is amended 

by: 

■ 1. Adding two sentences to the end of 

paragraph (b)(1). 

■ 2. Revising paragraph (e). 

The addition and revision read as 

follows: 

§ 1.6417–6 Special rules. 

* * * * * 

(b) * * * 

(1) * * * For purposes of this 

paragraph (b)(1), if an applicable credit 

is subject to section 50, then section 50 

applies without regard to section 

50(b)(3) and (b)(4)(A)(i). If another 

provision of the Code contains a basis 

reduction and/or recapture provision 

outside of section 50 that impacts the 

available credit (such as sections 30C(e), 

45Q(f)(4), and 48(a)(10)), then the rules 

of that provision of the Code and the 

regulations issued under that provision 

of the Code apply, except that any 

applicable credit continues to be 

determined without regard to section 

50(b)(3) and (4)(A)(i) and by treating any 

property with respect to which such 

credit is determined as used in a trade 

or business of the applicable entity, 

consistent with section 6417(d)(2) and 

§ 1.6417–2(c). 

* * * * * 

(e) Applicability dates—(1) In general. 

Except as provided in paragraph (e)(2) 

of this section, this section applies to 

taxable years ending on or after March 

11, 2024. For taxable years ending 

before March 11, 2024, taxpayers, 

however, may choose to apply the rules 

of §§ 1.6417–1 through 1.6417–4 and 

this section, provided the taxpayers 

apply the rules in their entirety and in 

a consistent manner. 

(2) Paragraph (b)(1). The second and 

third sentences of paragraph (b)(1) of 

this section apply to property placed in 

service in taxable years ending after 

[date of publication of final regulations 

in the Federal Register]. 

■ Par. 10. Section 1.6418–0 is amended 

under the heading § 1.6418–5 by: 

■ 1. Redesignating the entries for (g) 

through (j) as (h) through (k); 

■ 2. Adding new entry (g); and 

■ 3. Revising newly redesignated entry 

(k). 

The addition and revision read as 

follows: 

§ 1.6418–0 Table of contents. 

* * * * * 

§ 1.6418–5 Special rules. 

* * * * * 

(g) Notification and impact of recapture 

under section 30C(e)(5). 

* * * * * 

(k) Applicability dates. 

■ Par. 11. Section 1.6418–5 is amended 

by: 

■ 1. Revising paragraph (c). 

■ 2. Redesignating paragraphs (g) 

through (j) as paragraphs (h) through (k), 

respectively. 

■ 3. Adding new paragraph (g). 

■ 4. Revising newly redesignated 

paragraph (k). 

The revision and addition read as 

follows: 

§ 1.6418–5 Special rules. 

* * * * * 

(c) Basis reduction rules—(1) Section 

50(c) basis reduction. In the case of any 

transfer election under § 1.6418–2 or 

§ 1.6418–3 with respect to any specified 

credit portion described in § 1.6418– 

1(c)(2)(ix) through (xi), section 50(c) 

will apply to the applicable investment 

credit property (as defined in section 

50(a)(6)(A)) as if such credit was 

allowed to the eligible taxpayer. 

(2) Section 30C(e)(1) basis reduction. 

In the case of any transfer election 

under § 1.6418–2 or § 1.6418–3 with 

respect to any specified credit portion 

described in § 1.6418–1(c)(2)(i), section 

30C(e)(1) will apply to the 30C property 

as defined in § 1.30C–1(b)(1) as if such 

credit was allowed to the eligible 

taxpayer. 

* * * * * 

(g) Notification and impact of 

recapture under section 30C(e)(5)—(1) 

In general. In the case of any election 

under § 1.6418–2 or § 1.6418–3 with 

respect to any specified credit portion 

described in § 1.6418–1(c)(2)(i), if, 

during any taxable year, a recapture 

event as described in § 1.30C–4(b)(2) 

occurs with respect to a 30C property as 

defined in § 1.30C–1(b)(1) within three 

years of being placed in service, such 

eligible taxpayer and the transferee 

taxpayer must follow the notification 

process in paragraph (g)(2) of this 

section with recapture impacting the 

transferee taxpayer as described in 

paragraph (g)(3) of this section. 

(2) Notification requirements. The 

notification requirements for the eligible 

taxpayer and the transferee taxpayer are 

the same as for an eligible taxpayer and 

transferee taxpayer that must report 

notice of the occurrence of a recapture 

event and notice of the recapture 

amount as described in paragraphs 

(d)(2)(i) and (ii) of this section, 

respectively, except that the recapture 

amount that must be computed is 

defined in § 1.30C–4(b)(4). 

(3) Impact of recapture—(i) Section 

30C(e)(5) recapture event. The transferee 

taxpayer is responsible for any amount 

of tax increase under section 30C(e)(5) 

and § 1.30C–4(b)(4) upon the occurrence 

of a recapture event under § 1.30C–4(b), 

provided that if an eligible taxpayer 

retains any amount of an eligible credit 

determined with respect to 30C property 

directly held by the eligible taxpayer, 

the amount of the tax increase under 

section 30C(e)(5) and § 1.30C–4(b)(4) 

that the eligible taxpayer is responsible 

for is equal to the recapture amount 

multiplied by a fraction, the numerator 

of which is the total credit amount that 

the eligible taxpayer retained, and the 

denominator of which is the total credit 

amount determined for the eligible 

credit property. The amount of the tax 

increase under section 30C(e)(5) that the 

transferee taxpayer is responsible for is 

equal to the recapture amount 

multiplied by a fraction, the numerator 

of which is the specified credit portion 

transferred to the transferee taxpayer, 

and the denominator of which is the 

total credit amount determined for the 

eligible credit property. 

(ii) Impact of section 30C(e)(5) 

recapture event on basis of 30C property 

held by eligible taxpayer. The eligible 

taxpayer must increase the basis of the 

30C property as defined in § 1.30C– 

1(b)(1) (as of the first day of the taxable 

year in which the recapture event 

occurs) by an amount equal to the 

recapture amount provided to the 

eligible taxpayer by the transferee 

taxpayer under paragraph (g)(2) of this 

section and the recapture amount on 

any credit amounts retained by the 

eligible taxpayer in accordance with 

section 30C(e)(5) and § 1.30C–4(b). 

* * * * * 

(k) Applicability date—(1) In general. 

Except as provided in paragraph (k)(2) 

of this section, this section applies to 

taxable years ending on or after April 

30, 2024. For taxable years ending 

before April 30, 2024, taxpayers, 

however, may choose to apply the rules 

of this section and §§ 1.6418–1 through 

1.6418–3 provided the taxpayers apply 

the rules in their entirety and in a 

consistent manner. 

(2) Paragraphs (c)(2) and (g). 

Paragraphs (c)(2) and (g) of this section 

apply to property placed in service in 

taxable years ending after [date of 

publication of final regulations in the 

Federal Register]. 

Douglas W. O’Donnell, 

Deputy Commissioner. 

[FR Doc. 2024–20748 Filed 9–18–24; 8:45 am] 

BILLING CODE 4830–01–P 


lotter on DSK11XQN23PROD with PROPOSALS1