The percentage of the credit is determined by the tax year in which the costs are incurred:

• Tax year beginning prior to Jan. 1, 2006 = 50 %
• Tax year beginning prior to Jan. 1, 2009 = 35%
• Tax year beginning prior to Jan. 1, 2011 = 20%

Increased Credit

1. If 70% or more of the alternative fuel dispensed each year by the refueling facility is derived from a renewable energy source for ten years (certification must be provided upon request); and/or
2. If the refueling facility is generally accessible for use by persons in addition to the person claiming the credit

The percentage of the credit will be multiplied by 1.25.

Limitations to the Credit

The credit claimed by a taxpayer is limited to $400,000 in any consecutive five-year period for each refueling facility.

This credit cannot be claimed on a refueling facility, or on any equipment used in connection with that facility, if any taxpayer has ever claimed the alternative fuel refueling facility credit for that facility.

To the extent the allowable credit exceeds the tax liability, the excess may be carried forward for up to five years.

Common Questions

1. What percentage of the costs of a new facility will be eligible for the credit when the project includes a convenience store and traditional gas pumps?
   • Only the incremental costs of the alternative fuel distribution system will qualify for the credit. No portion of the cost of the convenience store and other fuel systems will qualify for the credit.

2. What costs qualify for the alternative fuel refueling facility credit when a facility for which a credit was previously claimed is updated and/or expanded?
   • None. The law does not allow a credit to be claimed on a facility for which the credit was previously claimed.

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