IRS Provides Eligible Census Tracts for Form 8911 Credit

Beginning in 2023, new rules apply to the credit for property used to recharge clean vehicles, claimed on Form 8911, Alternative Fuel Vehicle Refueling Property Credit. To claim the credit, otherwise eligible property must be placed in service in an eligible census tract.

The Tax Year 2023 M+O Individual Tax Year-End Workshop Reference Book discusses the rules for the credit on pages 13 to 16, along with the steps for determining the census tract for specific addresses.

The IRS has issued Notice 2024-20, which provides a list of eligible census tracts. However, taxpayers and practitioners must still use the Census Bureau’s website to look up the census tract for the specific address where the otherwise eligible property was placed in service. Once the census tract is determined, that tract can be compared to the list of eligible tracts in the IRS notice.