Expired, Repealed, and Archived Incentives and Laws

The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.

Alternative Fuel Corridor (AFC) Grants

Archived: 07/11/2023

The U.S. Department of Transportation (DOT) must establish a competitive grant program to strategically deploy publicly accessible electric vehicle charging and hydrogen, propane, and natural gas fueling infrastructure along designated DOT Federal Highway Administration AFCs. The grant will provide funding for designated Corridor-Pending AFCs to install infrastructure to convert to Corridor-Ready AFCs, and for Corridor-Ready AFCs to install alternative fuel infrastructure to provide station redundancy and meet higher demand. Propane fueling infrastructure is limited to use by medium- and heavy-duty vehicles. Eligible entities include states, metropolitan planning organizations, local governments, political subdivisions, and tribal governments. Additional funding eligibility and considerations will apply. The grant program must be established by November 15, 2022. (Reference Public Law 117-58 and 23 U.S. Code 151)

Pre-2023 Alternative Fuel Infrastructure Tax Credit

Archived: 12/31/2022

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. Permitting and inspection fees are not included in covered expenses. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Unused credits that qualify as general business tax credits, as defined by the Internal Revenue Service (IRS), may be carried backward one year and carried forward 20 years.

For more information about claiming the credit, see IRS Form 8911, which is available on the IRS Forms and Publications website.

For information on the Alternative Fuel Infrastructure Tax Credit for installations beginning January 1, 2023, see the Alternative Fuel Infrastructure Tax Credit.

Small Agri-Biodiesel Producer Tax Credit

Expired: 12/31/2022

NOTE: This incentive originally expired on December 31, 2017, but was retroactively extended through December 31, 2020, by Public Law 116-94.

A small agri-biodiesel producer that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive in the amount of $0.10 per gallon of agri-biodiesel that is: sold and used by the purchaser in the purchaser’s trade or business to produce an agri-biodiesel and diesel fuel mixture; sold and used by the purchaser as a fuel in a trade or business; sold at retail for use as a motor vehicle fuel; used by the producer in a trade or business to produce an agri-biodiesel and diesel fuel mixture; or used by the producer as a fuel in a trade or business. A small producer is one that has, at all times during the tax year, not more than 60 million gallons of productive capacity of any type of agri-biodiesel. Agri-biodiesel is defined as diesel fuel derived solely from virgin oils, including esters derived from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard seeds, and camelina, and from animal fats; renewable diesel does not qualify for the credit. The incentive applies only to the first 15 million gallons of agri-biodiesel produced in a tax year is allowed as a credit against the producer’s income tax liability.. For more information, see IRS Publication 510 and IRS Forms 637 and 8864, which are available via the IRS website. (Reference Public Law 116-94, Public Law 111-312, Section 701; and 26 U.S. Code 40A)

Qualified Two-Wheeled Plug-In Electric Drive Motor Vehicle Tax Credit

Expired: 01/01/2022

A credit is available for the purchase of a new qualified two-wheeled plug-in electric drive vehicle that draws propulsion using a traction battery that has at least 2.5 kilowatt hours (kWh) of capacity, uses an external source of energy to recharge the battery, has a gross vehicle weight rating of up to 14,000 pounds, is manufactured primarily for use on public roadways, and can drive at least 45 miles per hour. The credit is for 10% of the cost of the qualified vehicle, up to $2,500. For more information about claiming the credit, see the Internal Revenue Service (IRS) Plug-In Electric Vehicle Credit website and IRS Form 8936, which is available on the IRS Forms and Publications website. (Reference Public Law 116-260, Public Law 116-94, Public Law 115-123, Public Law 114-113, and 26 U.S. Code 30D)

Second Generation Biofuel Producer Tax Credit

Expired: 01/01/2022

A second generation biofuel producer that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive in the amount of up to $1.01 per gallon of second generation biofuel that is: sold and used by the purchaser in the purchaser's trade or business to produce a second generation biofuel mixture; sold and used by the purchaser as a fuel in a trade or business; sold at retail for use as a motor vehicle fuel; used by the producer in a trade or business to produce a second generation biofuel mixture; or used by the producer as a fuel in a trade or business. If the second generation biofuel also qualifies for alcohol fuel tax credits, the credit amount is reduced to $0.46 per gallon for biofuel that is ethanol and $0.41 per gallon if the biofuel is not ethanol. Second generation biofuel is defined as liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable basis or any cultivated algae, cyanobacteria, or lemna. To qualify, fuel must also meet the U.S. Environmental Protection Agency fuel and fuel additive registration requirements. Alcohol with a proof of less than 150, fuel with a water or sediment content of more than 4%, and fuel with an ash content of more than 1% are not considered second generation biofuels. The incentive is allowed as a credit against the producer's income tax liability. Under current law, only qualified fuel produced in the United States for use in the United States may be eligible. For more information about claiming the credit, see IRS Forms 637 and 6478, which are available on the IRS Forms and Publications website. (Reference Public Law 116-260, Public Law 116-94, Public Law 115-123, Public Law 114-113, and 26 U.S. Code 40)

Fuel Cell Motor Vehicle Tax Credit

Expired: 12/31/2021

A tax credit of up to $8,000 is available for the purchase of qualified light-duty fuel cell vehicles, depending on the vehicle's fuel economy. Tax credits are also available for medium- and heavy-duty fuel cell vehicles; credit amounts are based on vehicle weight. Vehicle manufacturers must follow the procedures as published in Notice 2008-33to certify to the Internal Revenue Service (IRS) that a vehicle meets certain requirements to claim the fuel cell vehicle credit. Notice 2008-33 also provides guidance to taxpayers about claiming the credit. For more information about claiming the credit, see IRS Form 8910, which is available on the IRS Forms and Publications website. (Reference Public Law 116-260, Public Law 116-94, Public Law 115-123, Public Law 114-113, and 26 U.S. Code 30B)

Second Generation Biofuel Plant Depreciation Deduction Allowance

Expired: 12/31/2020

NOTE: This incentive originally expired on December 31, 2017, but was retroactively extended through December 31, 2020, by Public Law 116-94.

A second generation biofuel production plant placed into service between December 31, 2017, and December 31, 2020, may be eligible for an additional depreciation tax deduction allowance equal to 50% of the adjusted basis of the property. The plant must be solely used to produce second generation biofuel and is only eligible for the depreciation allowance for the first year in operation. Second generation biofuel is defined as liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable basis or any cultivated algae, cyanobacteria, or lemna. (Reference Public Law 116-94, Public Law 112-240 and 26 U.S. Code 168)

Air Pollution Control Program

Archived: 12/01/2018

The Air Pollution Control Program assists state, local, and tribal agencies in planning, developing, establishing, improving, and maintaining adequate programs for prevention and control of air pollution or implementation of national air quality standards. Plans may emphasize alternative fuels, vehicle maintenance, and transportation choices to reduce vehicle miles traveled. Eligible applicants may receive federal funding for up to 60% of project costs to implement their plans. (Reference 42 U.S. Code 7405)

Alternative Fuel and Advanced Vehicle Technology Research and Demonstration Bonds

Repealed: 01/01/2018

Qualified state, tribal, and local governments may issue Qualified Energy Conservation Bonds subsidized by the U.S. Department of Treasury at competitive rates to fund capital expenditures on qualified energy conservation projects. Eligible activities include research and demonstration projects related to cellulosic ethanol and other non-fossil fuels, as well as advanced battery manufacturing technologies. Government entities may choose to issue tax credit bonds or direct payment bonds to subsidize the borrowing costs. For information on eligibility, processes, and limitations, see IRS Notices 2009-29, 2010-35, and 2012-44 or contact local issuing agencies. (Reference Public Law 115-409 and 26 U.S. Code 54D)

Second Generation Biofuel Production Property Depreciation Allowance

Expired: 12/31/2017

NOTE: This incentive originally expired on December 31, 2016, but was retroactively extended through December 31, 2017, by Public Law 115-123.

An owner of a second generation biofuel production plant may be eligible for a 50% special depreciation allowance to recover the cost of qualified property. To be eligible, the plant must function solely for the purpose of second generation biofuel production, be put into service by the current owner before January 1, 2018, and produce fuel that meets the U.S. Environmental Protection Agency fuel and fuel additive registration requirements. Second generation biofuel is defined as liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable basis or any cultivated algae, cyanobacteria, or lemna. For more information about claiming the incentive, see IRS Form 4562, which is available on the IRS Forms and Publications website. (Reference Public Law 115-123, Public Law 114-113, and 26 U.S. Code 168)

Bio-Based Transportation Research Funding

Archived: 07/01/2016

The Surface Transportation Research, Development, and Deployment (STRDD) Program funds activities that promote innovation in transportation infrastructure, services, and operations. A portion of the funding made available to STRDD is set aside for the Bio-Based Transportation Research program to carry out bio-based research of national importance at research centers and through Clean Fuels Alliance America. For more information, see the STRDD Program website. The program is not currently funded (verified July 2016). (Reference 23 U.S. Code 502 and 7 U.S. Code 8109)

Hydrogen Fuel Excise Tax Credit

Expired: 12/31/2014

NOTE: This incentive originally expired on September 30, 2014, but was retroactively extended through December 31, 2014 by Public Law 113-295.

A tax credit of $0.50 per gallon is available for liquefied hydrogen that is sold for use or used as a fuel to operate a motor vehicle. For an entity to be eligible to claim the credit they must be liable for reporting and paying the federal excise tax on the sale or use of the fuel in a motor vehicle. Tax exempt entities such as state and local governments that dispense qualified fuel from an on-site fueling station for use in vehicles qualify for the incentive. Eligible entities must be registered with the Internal Revenue Service (IRS). The incentive must first be taken as a credit against the entity’s alternative fuel tax liability; any excess over this fuel tax liability may be claimed as a direct payment from the IRS. Under current law, the credit for liquefied hydrogen expires after December 31, 2014. For more information about claiming the credit, see IRS Publication 510 and IRS Forms 637, 720, 4136, and 8849, which are available on the IRS Forms and Publications website. (Reference Public Law 113-295 and 26 U.S. Code 6426)

Renewable Fuels Assessment

Archived: 10/01/2014

The U.S. Department of Defense (DOD) prepared a report, Opportunities for DOD Use of Alternative and Renewable Fuels, on the use and potential use of renewable fuels in meeting DOD’s energy requirements for the Senate and House of Representatives Armed Services Committees. The report assessed the use of renewable fuels, including domestically produced algae-based fuels, biodiesel, and biomass derived fuels, as alternative fuels in ground transportation, aviation, and maritime fleets. The report also assessed the potential benefit of establishing a renewable fuel commodity class that is distinct from petroleum-based products. DOD also incorporated alternative fuels into the Operational Energy Strategy and the associated Implementation plan. For more information, see the DOD Office of the Assistant Secretary of Defense for Operational Energy Plans and Programs website. (Reference Public Law 111-84, Section 334)

National Fuel Cell Bus Program (NFCBP)

Archived: 12/31/2013

The goal of the NFCBP is to facilitate the development of commercially viable fuel cell bus technologies and related infrastructure with funding awarded through a competitive grant process. Priority consideration is given to applicants that have successfully managed advanced transportation technology projects, including projects related to hydrogen and fuel cell public transportation operations, for a period of at least five years. A minimum 50% non-federal cost share is required. For more information, see the NFCBP website. (Reference 49 U.S. Code 5309)

Transit Emissions and Energy Reduction Assistance

Archived: 12/31/2013

The Transit Investments for Greenhouse Gas and Energy Reduction (TIGGER) Program works with public transit agencies to implement strategies for reducing greenhouse gas emissions and energy use from transit agency operations. Strategies may be implemented through operational or technological enhancements and electric drive projects are specifically encouraged. Eligible projects include on-board vehicle energy management such as energy storage, regenerative braking, fuel cells, and turbines; accessory electrification; vehicle and locomotive design including lightweight materials; and rail transit energy management such as regenerative braking and solar propulsion engine systems. For more information, see the TIGGER Program website.

Alternative Transportation in Parks and Public Lands Program

Repealed: 07/06/2012

The following was repealed by Public Law 112-141: The Alternative Transportation in Parks and Public Lands provides funding to support public transportation projects in parks and on public lands. The goals of the program include conservation of natural, historical, and cultural resources, and reduced congestion and pollution. The Federal Transit Administration administers the program while partnering with the U.S. Department of the Interior and the Forest Service to provide for technical assistance in alternative transportation options. Eligible projects include capital and planning expenses for alternative transportation systems such as clean fuel shuttle vehicles. (Reference 49 U.S. Code 5320)

Clean Fuels Grant Program

Repealed: 07/06/2012

The following was repealed by Public Law 112-141: The Clean Fuels Grant Program assists designated ozone and carbon monoxide air quality nonattainment and maintenance areas in achieving or maintaining the National Ambient Air Quality Standards through grant funding. The program accelerates the deployment of advanced bus technologies by supporting the use of low emission vehicles in transit fleets. The program assists transit agencies in purchasing low-emission buses and related equipment, constructing alternative fuel stations, modifying garage facilities to accommodate clean fuel vehicles, and assisting with the use of biodiesel. (Reference 49 U.S. Code 5308 and 49 CFR 624)

Clean Air Act Amendments of 1990

Archived: 12/31/2011

The Clean Air Act Amendments (CAAA) of 1990 amended the original Clean Air Act (CAA) of 1970. The CAAA of 1990 created several initiatives to reduce mobile source pollutants, thereby pursuing one of the original goals of CAA. The CAAA establishes standards and procedures for reducing human and environmental exposure to a range of pollutants generated by industry and transportation. States have to develop state implementation plans that explain how they will carry out initiatives outlined by the CAAA. The U.S. Environmental Protection Agency assists the states by providing scientific research, expert studies, engineering designs and money to support clean air programs. For more information, visit the EPA's Plain English Guide to the Clean Air Act.

Import Duty for Fuel Ethanol

Expired: 12/31/2011

The U.S. Customs and Border Protection imposes a 2.5% ad valorem tariff on the import of ethanol for use in fuel which is based on the percent volume of the fuel at the time of transaction. Importers of ethanol must follow the same regulations as domestic producers, including registering with the IRS. (Reference Public Laws 96-499, 99-514, 109-423, and 110-234)

Small Ethanol Producer Tax Credit

Expired: 12/31/2011

A small ethanol producer that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive in the amount of $0.10 per gallon of ethanol that is: sold and used by the purchaser in the purchaser’s trade or business to produce an ethanol fuel mixture; sold and used by the purchaser as a fuel in a trade or business; sold at retail for use as a motor vehicle fuel; used by the producer in a trade or business to produce an ethanol fuel mixture; or used by the producer as a fuel in a trade or business. A small producer is one that has, at all times during the tax year, not more than 60 million gallons of productive capacity of any type of alcohol. The incentive applies only to the first 15 million gallons of ethanol produced in a tax year and is allowed as a credit against the producer’s income tax liability. This tax credit expired December 31, 2011. For more information, see IRS Publication 510 and IRS Forms 637 and 6478, which are available via the IRS website. (Reference Public Law 111-312, Section 708; and 26 U.S. Code 40)

Volumetric Ethanol Excise Tax Credit (VEETC)

Expired: 12/31/2011

An ethanol blender that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive in the amount of $0.45 per gallon of pure ethanol (minimum 190 proof) blended with gasoline. Only entities that have produced and sold or used the qualified mixture as a fuel in their trade or business are eligible for the tax credit. The incentive must first be taken as a credit against the blender's fuel tax liability; any excess over this tax liability may be claimed as a direct payment from the IRS. This tax credit expired December 31, 2011. For more information, see IRS Publication 510 and IRS Forms 637, 720, 4136, 6478, and 8849, which are available via the IRS website. (Reference Public Law 111-312, Section 708; and 26 U.S. Code 6426)

Clean Fuel Fleet Program (CFFP)

Archived: 12/31/2011

The CFFP was implemented under the Clean Air Act Amendments of 1990 and applies to fleets in ozone nonattainment areas. The CFFP requires that a percentage of new cars, and light- and medium-duty trucks purchased by certain fleets meet lower hydrocarbon and nitrogen oxide emission standards. Individual states must ensure that appropriate fuels are available for operating these clean-fueled fleet vehicles. (Reference 42 U.S. Code 7586)

Light-Duty Hybrid Electric Vehicle (HEV) and Advanced Lean Burn Vehicle Tax Credit

Expired: 12/31/2010

A tax credit is available for qualified light-duty HEVs and advanced lean burn technology vehicles placed into service after December 31, 2005. The Internal Revenue Service (IRS) must first acknowledge the manufacturers' certifications of qualified vehicles and credit amounts, which are determined using a formula that accounts for improved fuel economy and lifetime fuel savings potential. The credit begins to phase out in the second quarter following the calendar quarter in which at least 60,000 of a manufacturer's qualifying HEVs and/or lean burn passenger automobiles and light trucks have been sold. See the IRS Qualified Hybrid Vehicles and IRS Qualified Advanced Lean Burn Technology Vehicles websites for the current list of qualified vehicles, credits, phase-out schedules, and required forms. This tax credit expires December 31, 2010. (Reference 26 U.S. Code 30B)

Qualified Alternative Fuel Motor Vehicle (QAFMV) Tax Credit

Expired: 12/31/2010

A tax credit is available toward the purchase of QAFMVs, which may be either new, original equipment manufacturer vehicles or vehicles that have been repowered by an aftermarket conversion company to operate on an alternative fuel. Qualifying alternative fuels are those powered by natural gas, liquefied petroleum gas, hydrogen, and fuel containing at least 85% methanol. The vehicle must be placed into service as an alternative fuel vehicle on or after January 1, 2006. Unused credits that qualify as general business tax credits, as defined by the IRS, may be carried backward one year and carried forward 20 years. Vehicle manufacturers must follow the procedures as published in Notice 2006-54 in order to certify to the Internal Revenue Service (IRS) that a vehicle meets the requirements to claim the QAFMV credit and confirm the allowable credit with respect to that vehicle. See the IRS QAFMV website for the current list of qualified vehicles and credits. For more information, see IRS Form 8910, which is available via the IRS website. This tax credit expires December 31, 2010. (Reference 26 U.S. Code 30B)

Heavy-Duty Hybrid Electric Vehicle (HEV) Tax Credit

Expired: 12/31/2009

A tax credit of up to $18,000 is available for the purchase of qualified heavy-duty HEVs with a gross vehicle weight rating of more than 8,500 pounds. Vehicle manufacturers must follow the procedures published in Notice 2007-23 to certify to the Internal Revenue Service (IRS) that a heavy-duty vehicle meets the requirements to claim the heavy-duty HEV credit and confirm the amount of the allowable credit with respect to that vehicle. (Reference 26 U.S. Code 30B)

Car Allowance Rebate System

Expired: 08/24/2009

The Car Allowance Rebate System (CARS) is a voluntary incentive program designed to encourage consumers to trade in older, less fuel-efficient cars and trucks for newer, more fuel-efficient vehicles. The U.S. Department of Transportation’s National Highway Traffic Safety Administration will administer the program. Consumers may receive $3,500 or $4,500 credit toward the purchase or lease of a new, qualified fuel-efficient vehicle at a participating dealership. The incentive amount depends on the type of vehicle purchased and the improvement in fuel economy of the purchased vehicle as compared to the eligible trade-in vehicle. In general, eligible trade-in vehicles must have a combined city/highway fuel economy rating of 18 miles per gallon or less, be in drivable condition, be less than 25 years old, and registered and insured for the full year prior to trade-in. The program will end November 1, 2009, or when funds authorized for the program are exhausted. For more information, including additional eligibility requirements, see the CARS website. (Reference Public Law 111-32, and 49 CFR 512 and 599)

Idle Reduction Facilities Regulation

Repealed: 05/24/2008

The following was repealed by Public Law 110-244: States are permitted to provide facilities in interstate system rights-of-way that allow operators of commercial vehicles to reduce truck idling or use alternate power sources. States may allow idling reduction facilities for commercial vehicles to be placed in rest or recreation areas as well as in safety rest areas constructed or located on rights-of-way of the interstate system. The idling reduction facilities must not reduce the existing number of truck parking spaces at a given rest or recreation area. States may charge a fee or permit charging a fee, for parking spaces actively providing idling reduction measures. For more information, see the Idling Reduction Facilities in Interstate Rights-of-Way fact sheet. (Reference 23 U.S. Code 111)

Electric Vehicle Tax Credit

Expired: 12/31/2007

A tax credit for the purchase of qualified electric vehicles is provided under Section 179A of the Energy Policy Act of 1992; it was extended through 2007 by the Working Families Tax Relief Act of 2004. IRS Form 8834 can be used to calculate the credit for qualified electric vehicles placed in service. The credit amount equals 10% of the cost of the vehicle up to $4,000. This credit is scheduled to be reduced by 75% in 2006 and expire in 2007. To qualify for the credit, the vehicle must be powered primarily by an electric motor drawing current from batteries or other portable sources of electricity. All dedicated, plug-in-only electric vehicles qualify for the tax credit, which is available for business or personal vehicles. A tax deduction of up to $100,000 per location is available for qualified electric vehicle recharging property used in a trade or business.

Petroleum Violation Escrow Account

Expired: 12/31/2005

Oil overcharge funds, also known as petroleum violation escrow (PVE) funds, came from fines paid by oil companies in violation of the federal oil price caps in place from 1973-1981. These funds may be used for energy efficiency and renewable energy projects. More than half the account's money is channeled through the U.S. Department of Energy's (DOE) State Energy and Weatherization Assistance Programs and the U.S. Department of Health and Human Services' Low-Income Home Energy Assistance Program. These programs grant funds (with DOE review) to states for a broad range of energy-related programs. To date, more than $4 billion in PVE funds have been made available to states. For more information, contact Faith Lambert, DOE, Office of State and Community Programs, at (202) 586-2319, faith.lambert@hq.doe.gov, or your State Energy Office (listed under your state's Points of Contact section).