Carper, Colleagues Urge Biden Administration to Expand Access to Vehicle Refueling Infrastructure Tax Credit

Letter

Dear Secretary Yellen and Commissioner Werfel:
We write to urge you to swiftly finalize guidance for the Section 30C Alternative Fuel
Vehicle Refueling Property Credit, which was significantly expanded through the historic
Inflation Reduction Act (IRA, P.L. 117-169). We also ask that you, in this guidance, establish an
inclusive census tract definition, clarify per single item basis, and provide a safe harbor provision
for certain investments already made. Effective implementation of Section 30C is critical to
realizing the Administration's goal of deploying 500,000 chargers by 2030 and facilitating the
swift decarbonization of our transportation sector.

As you know, to qualify under Section 30C, the IRA requires properties to be placed in
service in an "eligible census tract," which excludes "urban areas" as designated by the Secretary
of Commerce. We urge you to define eligible census tracts in the most inclusive manner possible.
Specifically, we advocate for making eligible any and all census tracts in which no less than 10
percent of census blocks are classified as rural, consistent with the recommendations endorsed by
a coalition of more than 30 environmental, industry, consumer, and labor stakeholders in June.
The interpretation will incentivize significant additional public and private sector investments in
zero-emission truck stops, intermodal facilities, warehouses, and other foundational locations, as
Congress intended.

Additionally, the IRA amended Section 30C to provide incentives on a per single item
basis rather than a per location basis, dramatically increasing the availability of the credit and
better aligning this important investment in the Nation's charging infrastructure with current and
future technologies. We urge that each port at a refueling property be considered a single item,
consistent with the Department of Transportation's National Electric Vehicle Infrastructure
program. This will provide flexibility as refueling properties increase in size and capabilities,
improving longevity and enabling future innovation.

Given the delays and uncertainty created by the current lack of guidance, we encourage the
adoption of a temporary safe harbor for taxpayers who have acted in good faith to comply with
Section 30C requirements. This should also be accompanied with the development and
dissemination of maps and other user-friendly materials or tools to help navigate eligibility. Such
actions will protect taxpayers who installed infrastructure over the last year and minimize negative
impacts on future investment and planning decisions.

We appreciate your attention to this matter, and we look forward to working with you to
ensure that federal investments are consistent with the Administration's broader climate and
environmental justice goals.

Source