1. What does ​“placed in service” mean in relation to my qualified alternative fuel vehicle refueling property?

Generally, property is placed in service when it is ready and available for a specific use, regardless of whether or not it is actually used at the time. For example, an EV charger installed at a taxpayer’s principal residence will be placed in service when it is operational.

For businesses and other eligible entities the IRS has provided general guidance for taxpayers to determine when a property is placed in service in Publication 946 (How to Depreciate Property).

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2. When do I need to place my qualified alternative fuel vehicle refueling property in service to be eligible for the 30C credit?

To be eligible for the 30C credit (as amended by the IRA), the property must be placed in service after Dec. 31, 2022, and before Jan. 1, 2033. The mapping tool includes eligible census tracts based on when property is placed in service, based on currently available data.  Property placed in service before Jan. 1, 2023, may be eligible for the 30C credit under the law in effect before the IRA.

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3. If I am an individual and purchased a charger to install at my principal residence, does my principal residence need to be in an eligible census tract for the charger to potentially be eligible for the tax credit?

Yes. The location requirement for the credit applies both to individual consumer property as well as commercial property.

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4. How do I know if my qualified alternative fuel vehicle refueling property is installed in a location that qualifies for the tax credit?

To be eligible for the credit, qualified alternative fuel vehicle refueling property must be placed in service in one of two types of population census tracts (or both, if the population census tract qualifies under both categories). The categories are:

1. Low-income community census tracts: Census tracts as described in the ​“low-income community” definition of the New Markets Tax Credit (NMTC) (Internal Revenue Code section 45D). See FAQ 14 for details about how NMTC census tracts are determined.
2. Non-urban census tracts: Census tracts defined as ​“non-urban” according to Treasury/IRS guidance. See FAQ 18 for details about how non-urban census tracts are determined.

The eligibility of a specific location may change over time.  Please refer to FAQ 6 for more information.

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5. If my qualified alternative fuel vehicle refueling property is in one of the two location eligibility categories, do I also have to establish that it is in the other location eligibility category?

No. Your property only needs to be in one type of location eligibility category to qualify.

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6. Do the eligible locations change depending on when my qualified alternative fuel vehicle refueling property is placed in service?

Yes. The locations eligible for the credit change according to changes in the boundaries of population census tracts and determinations of low-income communities and non-urban census tracts. The mapping tool includes presently identifiable eligible census tracts for property placed in service between Dec. 31, 2022, and Jan. 1, 2030. See the table below for more specifics about properties placed in service between these dates as defined in section 5.01 of IRS Notice 2024-20.

I placed my property in service….	Eligible low-income community census tracts are denoted in the map on this webpage by…	Eligible low-income community census tracts are listed in IRS guidance in….	Eligible non-urban census tracts are denoted in the map on this webpage by….	Eligible non-urban census tracts are listed in IRS guidance in….
After Dec. 31, 2022, and before Jan. 1, 2025	Type in the address or latitude and longitude of your eligible property.  If your property is in a census tract denoted as a ​“2011-2015 NMTC tract” and/or ​“2016-2020 NMTC tract,” it is in an eligible low-income community census tract.	Appendix A (2011-2015 NMTC tract) and Appendix B (2016-2020 NMTC tract)	Type in the address or latitude and longitude of your eligible property. If your property is in a census tract denoted as a ​“2020 non-urban census tract,” it is in an eligible non-urban census tract.	Appendix B (2020 non-urban census tract)
After Dec. 31, 2024, and before Jan. 1, 2030	Type in the address or latitude and longitude of your eligible property.  If your property is in a ​“2016-2020 NMTC tract,” it is in an eligible low-income community census tract.	Appendix B (2016-2020 NMTC tract)	Type in the address or latitude and longitude of your eligible property.  If your property is in a census tract denoted as a ​“2020 non-urban census tract,” it is in an eligible non-urban census tract.	Appendix B (2020 non-urban census tract)

Note that this table will be updated upon future releases of low-income community census tract listings from the CDFI Fund. It is anticipated that an updated set of NMTC tracts (“updated NMTC census tracts”), based on a possible future delineation of census tract boundaries, will be released in approximately late 2028, which will lead to an updated set of low-income community census tracts for purposes of 30C. The NMTC 2016-2020 census tracts are anticipated to remain eligible locations for the 30C credit through 2029. After the updated NMTC census tracts are released, it is anticipated that guidance will be released reflecting the updated set of low-income community census tracts. For more information see also FAQ 17.

Non-urban census tracts may also be updated if the Census Bureau releases an updated listing of urban areas based on the 2030 decennial census.  However, the credit expires after 2032, while the release of the 2030 urban areas (and their geographic boundaries) are predicted to be released in 2033.

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7. Why do population census tract boundaries change?

The Census Bureau defines population census tract boundaries with each decennial Census based on population and housing density. For each decennial census, census tract boundaries are drawn to satisfy specific statistical measures. Boundaries generally follow visible and identifiable features but may also follow nonvisible legal boundaries. Census tract boundaries generally do not change between decennial censuses but may do so based on legal changes in geographic areas. Consequently, the Census Bureau releases updated delineations of census tract boundaries every year.

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8. Why are there presently two delineations of census tract boundary used to determine eligibility for the credit?

Between the initial date of eligibility for the credit and the initial release of guidance, two delineations of census tract boundaries have been used to determine low-income community census tracts.  Taxpayers were eligible to claim the credit for eligible properties beginning on Jan. 1, 2023.  At that time, the only available listing of eligible census tracts came from the CDFI Fund’s determination of low-income community census tracts, as based on the 2011-2015 ACS 5-year estimates and the 2015 delineation of census tract boundaries.  The CDFI Fund released updated NMTC tracts based on the 2016-2020 ACS 5-year estimates and the 2020 delineation of census tract boundaries in Sept. 2023.  The Treasury/IRS determinations of 2020 non-urban census tracts, which are based on the 2020 delineations of census tract boundaries were released on Jan. 19, 2024.

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9. How do I know if my property is in a non-urban census tract?

The map linked on this page can help in determining if your property is in an eligible census tract. Type your eligible property’s address or latitude and longitude into the search tool. If your property is in an eligible non-urban census tract, the mapping tool will denote the tract as being a non-urban census tract.

Alternatively, you can determine the 11-digit census tract GEOID based on the 2020 census tract boundaries of your property by using the Census Geocoder, described in FAQ 11. Compare your resulting 11-digit census tract GEOID to the listing in Appendix B for ​“2020 non-urban census tract”.

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10. How do I know if my property is in a low-income community census tract?

The map linked on this page can help in determining if your property is in an eligible census tract. Type your eligible property’s address or latitude and longitude into the search tool. Depending on when you placed your property in service, you can use one or two map layers to determine if your property is in an eligible low-income community census tract.

• If your property was placed in service before Jan. 1, 2025: Your property will be in an eligible census tract that is a low-income community census tract if it is in a census tract that is denoted either as a ​“2011-2015 NMTC tracts” or a ​“2016-2020 NMTC tracts”.
• If you placed your property in service after Dec. 31, 2024 and before Jan. 1, 2030: Your property will be in an eligible low-income community census tract if it is in a census tract that is denoted as a ​“2016-2020 NMTC tracts”.

Alternatively, to determine your eligible property’s census tract based on the 2020 census tract boundaries, you can use the Census Geocoder, described in FAQ 11, and compare it to the listing in Appendix B of IRS Notice 2024-20 for ​“2016-2020 NMTC tracts”.

To determine your eligible property’s census tract based on the 2015 census tract boundaries, you can use the CDFI Fund mapping tool, described in FAQ 12, and compare it to the listing in Appendix A of IRS Notice 2024-20 for ​“2011-2015 NMTC tracts”.

Note that it is anticipate that an updated set of low-income community census tracts will become available in approximately 2028. See FAQ 17 for more information about this update.

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11. How can I determine my 11-digit census tract GEOID based on the 2020 census tract boundaries?

As described in IRS Notice 2024-20, you can determine the census tract of your property based on the 2020 census tract boundaries by using the Census Geocoder. Use this link for an address or this link for a latitude/longitude point. Then follow these steps:

• In the ​“Benchmark” drop-down menu, choose ​“Public_AR_Census2020.”
• In the ​“Vintage” drop-down menu, choose ​“Census2020_Census2020.”
• In the results under ​“Census Tracts” find the ​“GEOID” near the bottom of the results webpage.  This is your full 11-digit census tract GEOID.
• Compare your 11-digit census tract GEOID to the listing in Appendix B of IRS Notice 2024-20.

Further instructions to use the Census Geocoder are available via this link.

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12. How can I determine my 11-digit census tract GEOID based on the 2015 census tract boundaries?

As described in IRS Notice 2024-20, you can determine your 11-digit census tract GEOID based on the 2015 census tract boundaries by visiting the CDFI Fund mapping tool here and following these steps:

• On the page for the link provided, click on ​“CDFI.” This should take you to another page with a map with the title ​“CDFI Public Viewer.”
• In the left-hand side column, click ​“Layers.” Under ​“CIMS Layers,” put a checkmark in the box next to ​“2015 CDFI Tract,” and remove all checkboxes from other CIMS Layers. Specifically, uncheck the ​“2020 CDFI Tract” box.
• Type in your address or latitude and longitude in the ​“Search Addresses” bar at the top. This will take you to the tract of your address. If you left click your mouse, the 11-digit census tract GEOID will appear.
  • Note that searching for your address might zoom you in so far that you don’t see other boundaries of census tracts or states. However, the left clicking of the mouse does provide you with the 11-digit-census tract GEOID.

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13. If my qualified alternative fuel vehicle refueling property was placed in service in a non-urban census tract or low-income community census track before the IRS guidance was released, is it eligible for the 30C Credit?

Property placed in service after December 31, 2022, is eligible for the 30C credit if it is located in an eligible census tract, even though the initial guidance for location determinations was released in January 2024. The listings of eligible census tracts (2011-2015 NMTC tracts, 2016-2020 NMTC tracts, and 2020 non-urban census tracts) are all applicable for property placed in service in calendar year 2023.

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14. How are the low-income community census tracts determined?

Section 30C, as amended by the IRA, includes as eligible census tracts population census tracts that are low-income communities under the New Market Tax Credit (NMTC). The CDFI Fund has delineated certain population census tracts as low-income communities since the NMTC’s inception in 2000. The CDFI Fund determines these tracts based in part on the American Community Survey (ACS) 5-year estimates, published by the Census Bureau. The CDFI Fund updates these listings of NMTC-eligible census tracts approximately every five years. Treasury/IRS use the CDFI Fund’s designations of low-income community census tracts to determine the low-income community census tracts eligible for 30C.

More information on how the CDFI Fund determines individual population census tracts as low-income communities can be found in their Geographic-Based Reports. To find the relevant reports, choose ​“New Markets Tax Credit” in the left-hand-side drop-down menu under ​“CDFI Program.”  Click ​“Apply.” By clicking on the link for ​“New Markets Tax Credit Low-Income Community Census Tracts & High Migration Rural Tracts – American Community Survey 2016-2020” you can download an Excel file with the eligible tracts. The ​“Notes” sheet provides descriptions of how the tracts are deemed eligible.

Also note the separate worksheet listing in the CDFI Fund-released spreadsheet of ​“high migration” census tracts; these are also eligible population census tracts under the ​“low-income community” definition of the NMTC and therefore, 30C. See FAQ 15 and FAQ 16 for more information.

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15. Are ​“high-migration” population census tracts as described in the New Market Tax Credit definition of low-income community census tracts eligible for the 30C credit? Are these population census tracts mapped in the 30C map below?

Yes. The CDFI Fund determines the NMTC ​“low-income community” census tracts according to five sets of possible criteria.  One of these sets of criteria is based on the poverty and income rates of the census tracts.  A second set of criteria allows for different income qualifications for census tracts within high migration rural counties.  When the CDFI Fund releases its list of eligible low-income communities in an excel spreadsheet, the high migration tracts are listed in a separate sheet from the tracts that qualify based on other criteria.  Despite this separation, the ​“high migration” tracts do qualify as low-income communities, and are therefore low-income community census tracts eligible for the 30C credit.

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16. Are all portions of the New Market Tax Credit definition of ​“low-income community” mapped in the 30C eligibility map?

The relevant definition of low-income community census tracts comes from the definition of low-income communities under the New Markets Tax Credit (NMTC) in Internal Revenue Code section 45D(e). This includes five types of low-income communities:

1. Population census tracts with a poverty rate of at least 20 percent, or one of the following two types of tracts: For tracts not located within a metropolitan area, the median family income does not exceed 80 percent of statewide median family income. For tracts located within a metropolitan area, the median family income does not exceed 80 percent of the greater of statewide median family income or the metropolitan area median family income.
2. Targeted populations
3. Areas not within population census tracts
4. Population census tracts with low population
5. Population census tracts within high migration rural counties, under modified income determinations

Only categories (1) and (5) are considered eligible census tracts for purposes of the 30C tax credit. The Department of Treasury and the Internal Revenue Service intend to ask for comment with respect to Categories (2) and (4) per section 4.03 of IRS Notice 2024-20.

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17. Are low-income community census tract determinations updated over time? How frequently?

The CDFI Fund determines, for purposes of the New Market Tax Credit (NMTC), which population census tracts are ​“low-income communities.” The CDFI Fund determines these tracts based in part on the American Community Survey (ACS) 5-year estimates, published by Census. The CDFI Fund releases updated NMTC tracts approximately every five years; the two most recent CDFI Fund NMTC releases covered ACS 5-year estimates from 2011-2015 and 2016-2020. See IRS Notice 2024-20, section 4.03. For example, the NMTC determinations based on the 2016-2020 ACS was released in Sept. 2023.

It is anticipated that the CDFI Fund will release updated NMTC determinations, using a future census tract boundary delineation, in approximately 2028 per section 4.05 of IRS Notice 2024-20. If this timeline is kept, a new map layer will be released for 30C.

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18. How are the ​“non-urban” census tracts determined?

Section 30C, as amended by the IRA, provide that one type of eligible census tract is a ​“population census tract” which is ​“not an urban area” (i.e., a non-urban census tract).  The IRA further provides that an ​“urban area” is ​“a census tract (as defined by the Census Bureau which, according to the most recent decennial census, has been designated as an urban area by the Secretary of Commerce.”

The Census Bureau determines ​“urban areas” for each decennial census, largely on the basis of population and housing density.  In Dec., 2022, Census released its list of urban areas as of 2020, and shortly thereafter, Census released the files that enable mapping of the geographic boundaries of these urban areas.

The IRA’s amendments to 30C provide that location eligibility is based on population census tracts. However, as of the 2020 Decennial Census, Census defines urban areas on the basis of the census blocks. Thus, urban areas may be comprised of portions of population census tracts; an individual population census tract may have portions in an urban area and portions outside of an urban area.

As described in IRS Notice 2024-20, the Treasury Department and the IRS intend to propose regulations that if at least 10% of the census blocks within a tract are outside of urban areas, the population census tract is ​“non-urban”.

Notably, this percentage is not rounded; 9.9% of census blocks is not rounded up to 10%.

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19. Are non-urban census tract determinations updated over time? How frequently?

The non-urban census tracts may be updated if the Census Bureau releases determinations of urban areas based on the 2030 decennial census before 2033. However, the Census Bureau released the 2020 determinations of urban areas in 2023; therefore, it is anticipated that the 2030 determinations of urban areas will not be released until 2033. In the event that that the determination of urban areas is earlier than January 1, 2033, Treasury and the IRS intend to release updated ​“2030 non-urban census tracts” using the 2030 census tract boundaries and the 2030 determinations of urban areas per section 4.06 of IRS Notice 2024-20.

Until a release of the 2030 urban area determinations, taxpayers should use the 2020 non-urban census tracts to determine eligibility for the 30C credit per section 4.06 of IRS Notice 2024-20.

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20. How are the 2020 urban areas mapped to census tracts?

The 2020 census block and tract boundaries are used to determine the percentage of each population census tract that is in an urban area. To make this determination Treasury/IRS use the file titled ​“A list of 2020 Census tabulation blocks classified as urban in the 2020 Census with associated 2020 Census Urban Area Census (UACE) codes and names for the U.S. and Puerto Rico” available here.

The 11-digit census tract GEOID is used to merge this file with the 2020 National Sub-State Geography Geodatabase available here. This generates a file that is used to determine the number of urban area census blocks within each census tract.

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21. How are census blocks and census tracts related?

Census blocks are the ​“building blocks for all geographic boundaries the Census Bureau tabulates data for,” including census tracts. Census blocks are not necessarily square and are not all the same size. There are about 11 million census blocks in U.S., with an average size in 2020 of about 0.5 square miles.

Census tracts are comprised of census blocks; on average there are 96 blocks per census tract. Census tracts are generally defined based on population, each averaging about 4,000 people. As of the 2020 decennial census, the average size of a census tract was 45 square miles.

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22. Does the 30C definition of ​“non-urban” have the same definition as other government agencies’ determinations of ​“rural” or ​“non-metropolitan”?

Different agencies and programs within the Federal government determine areas as ​“rural”, ​“non-metropolitan” (non-metro), or other descriptions of less-population-dense for various purposes. As of the 2020 decennial Census, the Census Bureau describes any census block outside of an urban area as ​“rural.” The U.S. Department of Agriculture’s Economic Research Service (ERS) makes several types of determinations of rurality, rural-urban continuums, and rural-urban commuting areas. The Office of Management and the Budget (OMB) determines ​“metropolitan statistical areas” using census data. Based on these metropolitan statistical area determinations, the Bureau of Labor Statistics in conjunction with states and territories, determines ​“non-metropolitan areas”. 

These other determinations of rurality and ​“non-metropolitan areas” do not have bearing on the 30C determinations of non-urban census tracts.

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23. How are census tract boundary changes over time accounted for in determining eligible census tracts?

Population census tract boundaries are updated with each decennial census and may be updated in between decennial censuses. The two categories of eligible census tracts (low-income community census tracts and non-urban census tracts) for purposes of 30C may have different census tract boundaries. The Inflation Reduction Act’s amendments to section 30C specify that the non-urban census tract be defined in relation to the most recent decennial census. Therefore, the non-urban census tract designations are defined in relation to 2020 Census tract boundaries, and the boundaries of these designated tracts will not be changed until the next decennial census.

The other type of 30C census tract – the low-income community census tract – is not tied to a specific decennial census, and therefore is not tied to a specific set of census tract boundaries. As described in earlier FAQs, the CDFI Fund updates these low-income community census tract determinations, and each update incorporates new census tract boundaries. The 2011-2015 NMTC determinations are based on the 2015 Census tract boundaries, while the 2016-2020 NMTC determinations are based on the 2020 Census tract boundaries. Future updates are likely to rely on new delineations of census tract boundaries.

Notably, the largest changes in census tract boundaries occur with each decennial census, not between censuses.

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24. Are the five U.S. territories of American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, and Puerto Rico eligible locations for 30C property?

In general, section 30C eligible property must be used in the 50 states or the District of Columbia. However, refueling property may be eligible for section 30C if it is owned by a domestic corporation or United States citizen (other than a citizen that is a bona fide resident of a territory) and which is used predominantly in a territory of the United States by such a corporation or such a citizen, or by a corporation created or organized in, or under the law of, a possession of the United States.

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25. Are the eligible locations of the five U.S. territories of American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, and Puerto Rico mapped on the below map?

Yes.

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