Last month, President Obama signed the Consolidated Appropriations Act of 2016. Several tax credits were extended under Division Q, the Protecting Americans from Tax Hikes Act (PATH Act). Many of these provisions allow significant savings in alternative fuel vehicles and infrastructure. Below is a brief summary of the tax credits, with links to the Department of Energy’s Alternative Fuels Data Center for more information on each incentive.
| Alternative Fuel Infrastructure Tax Credit | Residential fueling equipment may receive a tax credit up to $1,000, while commercial fueling equipment for various alt fuels are eligible for a 30% tax credit up to $30,000. |
| Alternative Fuel Excise Tax Credit | $0.50 per gallon tax credit for alternative fuels. |
| Alternative Fuel Mixture Excise Tax Credit | $0.50 per gallon tax credit for alternative fuels used in mixtures with gasoline, diesel, or kerosene. |
| Qualified Two-wheeled Plug-In Electric Drive Motor Vehicle Tax Credit | Qualified vehicles are eligible for a tax credit of 10% of the cost of the vehicle, up to $2,500. |
| Fuel Cell Motor Vehicle Tax Credit | Up to $4,000 tax credit for the purchase of qualified light-duty fuel cell vehicles. |
| Biodiesel Income Tax Credit | $1.00 per gallon tax credit for biodiesel, agri-biodiesel, or renewable diesel for taxpayers that deliver unblended biodiesel into the tank of a vehicle. |
| Biodiesel Mixture Excise Tax Credit | $0.50 per gallon tax credit for biodiesel, agri-biodiesel, or renewable diesel used in mixtures with gasoline, diesel, or kerosene. |
| Second Generation Biofuel Production Property Depreciation Allowance | 50% special depreciation allowance for second generation biofuel production plants. |
| Second Generation Producer Tax Credit | Second generation biofuel producers registered with the IRS may be eligible for a $1.01 per gallon of biodiesel tax credit. |