Biden-Harris Administration Issues Proposed Guidance for Electric Vehicle Charging Tax Incentive in Inflation Reduction Act

Expanded Access Unlocks Benefits of Historic Legislation

Larisa Manescu,

Washington, DC – Today, the U.S. Department of the Treasury (Treasury) and the Department of Energy (DOE) issued proposed guidance that will allow taxpayers and manufacturers to access the benefits of electric vehicle charging tax incentives in the Inflation Reduction Act (IRA).

The new guidance for the 30C tax credit (also called the Alternative Fuel Vehicle Refueling Property Credit) provides essential clarity to stakeholders by defining qualifying project locations, which are limited by law to “non-urban areas.” Treasury’s guidance inclusively defines that phrase, adopting a definition that makes the credit available to two-thirds of the U.S. population.  

This proposed guidance is aligned with the recommendations endorsed by a coalition of more than 30 environmental, industry, consumer, and labor stakeholders. 

With this guidance, 11,700 warehouses across the U.S. that previously faced uncertainty about whether they qualified now have eligibility to access the IRA tax incentive. They represent 15 percent of the nation’s warehouses, and impact the air quality of millions of Americans.

In response to today’s announcement, Sierra Club’s Clean Transportation for All Director Katherine García released the following statement: 

“We appreciate the Treasury and DOE's action to issue this proposed guidance so more taxpayers and businesses can fully access the electric vehicle benefits of the Inflation Reduction Act. This guidance will help make the Biden-Harris Administration’s goal to expand electric vehicle charging a reality. 

“This guidance will help accelerate progress towards the administration's climate, air quality, and equity goals. It is especially important for communities near freight hubs, where millions of residents live next to warehouses and are exposed to toxic diesel exhaust from thousands of trucks that pass by daily.

“By dramatically increasing the availability of the credit, more and more communities will benefit from investments in critical charging infrastructure needed for warehouses and truck stops. This will accelerate our nation’s transition to electric trucks so people across the country can breathe cleaner air.”

About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit