Page 70 - IRS Business Tax Credits Guide

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Instructions for Form 8911 Pt. size: 9.5 11:00 - 14-Mar-2023
Department of the Treasury
Internal Revenue Service
(Rev. January 2023)
Alternative Fuel Vehicle Refueling Property Credit
Section references are to the Internal Revenue Code unless For property of a character subject to an allowance for
otherwise noted. depreciation (business/investment use property), the credit
Future Developments for each item of property placed in service after 2022 is
generally the smaller of 30% of the property's cost or
For the latest information about developments related to $100,000. For property of a character not subject to an
Form 8911 and its instructions, such as legislation enacted allowance for depreciation placed in service after 2022 at
after they were published, go to IRS.gov/Form8911. your main home (personal use property), the credit for each
What's New item of property is generally the smaller of 30% of the
property's cost or $1,000.
Credit extension. The Inflation Reduction Act of 2022 (IRA Each property’s cost must first be reduced by any section
2022) extended the alternative fuel vehicle refueling property 179 expense deduction taken for the property.
credit to cover refueling property placed in service after 2021
and before 2033. Qualified Alternative Fuel Vehicle
Credit modification. IRA 2022 also modified the credit for Refueling Property
certain refueling property placed in service after 2022 as Qualified alternative fuel vehicle refueling property is any
discussed in these instructions. property (other than a building or its structural components)
New Form 8911 lines 4a through 5c. Lines 4 and 5 were used for either of the following.
divided to break out amounts subject to the lower credit rate • To store or dispense an alternative fuel (defined below)
that applies to certain refueling property placed in service other than electricity into the fuel tank of a motor vehicle
after 2022 that does not meet the new prevailing wage and propelled by the fuel, but only if the storage or dispensing is
apprenticeship requirements. at the point where the fuel is delivered into that tank.
• To recharge an electric vehicle, but only if the recharging
General Instructions property is located at the point where the vehicle is
recharged.
Purpose of Form In addition, the following requirements must be met to
Use Form 8911 to figure your credit for alternative fuel qualify for the credit.
vehicle refueling property you placed in service during your • You placed the refueling property in service during your
tax year. The credit attributable to depreciable property tax year.
(refueling property used for business or investment • The original use of the property began with you.
purposes) is treated as a general business credit. Any credit • The property isn’t used predominantly outside the United
not attributable to depreciable property is treated as a States.
personal credit. • If the property isn’t business/investment use property, the
Partnerships and S corporations must file this form to property must be installed on property used as your main
home.
claim the credit. All other taxpayers aren’t required to • Property placed in service after 2022 must be located in an
complete or file this form if their only source for this credit is a eligible census tract.
partnership or S corporation. Instead, they can report this
credit directly on line 1s in Part III of Form 3800, General Exception. If you are the seller of new refueling property to
Business Credit. a tax-exempt organization, governmental unit, or a foreign
Which Revision To Use person or entity, and the use of that property is described in
section 50(b)(3) or (4), you can claim the credit, but only if
Use the December 2022 revision of Form 8911 for tax years you clearly disclose in writing to the purchaser the amount of
beginning in 2022 or later, until a later revision is issued. Use the tentative credit allowable for the refueling property
prior revisions of the form for earlier tax years. All revisions (included on line 7 of Form 8911). Treat all property eligible
are available at IRS.gov/Form8911. for this exception as business/investment use property. If you
Amount of Credit elect to claim the credit, you must reduce cost of goods sold
by the amount you entered on line 7 for that property.
For property of a character subject to an allowance for Alternative fuel. The following are alternative fuels.
depreciation (business/investment use property), the credit • Any fuel at least 85% of the volume of which consists of
for all property placed in service before 2023 at each location one or more of the following: ethanol, natural gas,
is generally the smaller of 30% of the property’s cost or compressed natural gas, liquefied natural gas, liquefied
$30,000. For property of a character not subject to an petroleum gas, or hydrogen.
allowance for depreciation placed in service before 2023 at • Any mixture which consists of two or more of the following:
your main home (personal use property), the credit for all biodiesel (as defined in section 40A(d)(1)), diesel fuel (as
property placed in service at your main home is generally the defined in section 4083(a)(3)), or kerosene, and at least 20%
smaller of 30% of the property’s cost or $1,000. of the volume of which consists of biodiesel determined
without regard to any kerosene in such mixture.

Mar 13, 2023 Cat. No. 67911K