A tax credit can be taken for 30% of the cost of refueling properties for vehicles that use alternative fuels, up to a maximum credit of $30,000. The refueling property must be placed in service during the year at the taxpayer’s trade or business location or principal residence.
Qualifying alternative fuels include those of which at least 85% by volume consists of ethanol, natural gas, compressed natural gas, liquefied petroleum gas, and hydrogen. Or the alternative fuel can be a mixture of biodiesel and diesel fuel, with at least 20% being biodiesel.