[email protected] To designate these Alternative Fuel Corridors (AFC), FHWA solicits nominations from state and local officials and works with other federal officials and industry stakeholders. The following fuels are defined as alternative fuels by the Energy Policy Act (EPAct) of 1992: pure methanol, ethanol, and other alcohols; blends of 85% or more of alcohol with gasoline; natural gas and liquid fuels domestically produced from natural gas; propane; coal-derived liquid fuels; hydrogen; electricity; pure biodiesel (B100); fuels, other than alcohol, derived from biological materials; and P-Series fuels. The U.S. Department of Transportations Federal Transit Administration administers the Public Transportation Innovation Program. Fueling equipment for natural gas, propane, liquefied hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed through December 31, 2022, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Hydrogen tax credit would support both green, blue production Find information about several other incentives related to hydrogen and fuel cells . The bill maintains the $7,500 tax credit for the first 200,000 units sold. Additional terms apply. [email protected] The maximum credit is $500 per half kilowatt (kW) of power capacity. DOE will evaluate lifecycle emissions for each project application and give preference to applications that reduce greenhouse gas emissions across the full project lifecycle. Research, strategies, and actions to reduce transportation-related emissions and mitigate the effects of climate change. [email protected] 1818 (August 16, 2022), commonly known as the Inflation Reduction Act, retroactively reinstated and extended the following fuel tax credits through December 31, 2024: Alternative fuel credit. 2.2K subscribers in the Mirai community. In case of joint occupancy, the maximum qualifying costs that can be taken into account by all occupants for figuring the credit is $1,667 per 0.5 kW. The four-tier incentive breakdown is detailed in the following table: maintains the existing $7,500 for the purchase of fuel cell electric vehicles by creating a qualified new clean vehicle credit built on the 30D credit for plug-in battery electric vehicles: Adds a retail price cap of $55,000 for new cars and $80,000 for pickups, vans, and sport utility vehicles, Credit is reduced or eliminated if a certain percentage of the critical minerals utilized in battery components are not extracted or processed in the United States or a Free Trade Agreement country or recycled in North America; the percentage required increases from 40% in 2024 to 80% in 2026, Credit is reduced or eliminated if electric vehicle is not assembled in North America or if the majority of battery components are sourced outside of North America; the percentage increases from 50% in 2024 to 100% in 2028, Implements an income eligibility limit of $150,000 or $300,000 for jointfilers. The Department of Transportations Federal Transit Administration (FTA) offers grants through the Low or No Emission Grant (Low No) Program to local and state government entities for the purchase or lease of low- or zero-emission transit buses, in addition to the acquisition, construction, or lease of supporting facilities. In April 2004, the city of San Francisco acquired two Honda FCX cars powered by hydrogen fuel cells. See tax credits for 2022 and previous years. For ethanol blends containing no greater than 50% ethanol by volume, retailers must post the exact percentage of ethanol concentration, rounded to the nearest multiple of 10. Summary The New Clean Hydrogen Production Tax Credit, Explained Fleets may also opt into Alternative Compliance, which allows fleets the option to choose a petroleum reduction path in lieu of acquiring AFVs under Standard Compliance. Running on Empty: There's a Lot to Like about Hydrogen, If You Can Find It State projects will be treated as Federal-aid Highway Program projects. Industry supporters and energy analysts say the brand-new credit will spur innovation and expand the number of production facilities. "Fuel cell technology is scalable, and we believe it will take an increasingly visible and important role in our collective fight to reduce and eliminate carbon as we move towards a hydrogen society." washingtonpost. advice from ENERGY STAR Toyota Receives Zero Emission CARB Executive Order for HD Fuel Cell Low-emitting ferries must use an alternative fuel, such as methanol, natural gas, propane, hydrogen, and electricity. Permitting and inspection fees are not included in covered expenses. http://www.fta.dot.gov, The U.S. Department of Transportation (DOT) must establish a pilot grant program for the purchase of electric or low-emitting ferries and the electrification of or other reduction of emissions from existing ferries. SEP is authorized through fiscal year 2026. 2023 Key considerations for electric vehicles and hydrogen fuel cell For more information, including funding application deadlines, see the DOT INFRA Grants website. At least one H2Hub must demonstrate the end-use of hydrogen in the transportation sector. Tax exempt entities can receive an elective payment in lieu of the tax credit. The Inflation Reduction Act of 2022 (Public Law 117-169) amended the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now known as the Clean Vehicle Credit, and added a new requirement for final assembly in North America that took effect on August 17, 2022. (Reference Public Law 117-58). adds an election for direct pay provisions to a range of tax credits including the clean hydrogen production credit, the energy investment tax credit, the carbon capture and sequestration credit, alternative fuel vehicle refueling property credit, advanced energy project credit, and others: Allows direct payments to be made in lieu of a reduction in tax liability ("direct pay") and/or an option to monetize the credits by transferring them to an entity with greater tax liability ("transferability"), Direct pay is limited to certain tax exempt and governmental entities for most of the eligible tax credits, This limitation does not apply to the first 5 years of the section 45V clean hydrogen credit, section 45Q carbon capture and sequestration credit, and section 45X advanced manufacturing credit. Cost-effective deployment of EV charging for those without access to home charging; Innovative solutions to improve mobility options for underserved communities; Community engagement to accelerate clean transportation options in underserved communities; Research and development to reduce EV battery size and cost, increase EV battery range, and decrease EV battery emissions; Electrification of off-road and non-road vehicles, including agricultural, construction, rail, marine, and aviation; Materials technologies to improve EV efficiency and affordability; Use of the alternative fuels in commercial off-road vehicle technologies, including natural gas, hydrogen, and renewable propane; Planning and development of medium- and heavy-duty EV charging and hydrogen fueling corridors and advanced engine and fuel technologies to improve fuel economy and reduce greenhouse gas emissions. Canada has a long tradition in hydrogen (fuel cell) technology and is a leader in this field. The deal includes a cap on the suggested retail price of eligible vehicles of $55,000 for new cars and $80,000 for pickup trucks, SUVs, and vans.