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Choose any of the currently available incentives and grant opportunities to learn more:
Tax Incentives for Alternative Fuel and Advanced Technology Vehicles
The Federal Tax Credits for Purchase of Hybrids is available from 2006-2010 for hybrid electric vehicles and vehicles with cleaner burning diesel engines (advanced lean-burn engines). Consumers can earn you a tax credit of up to $3,400 for light duty vehicles (under 8,500 lbs) if they are one of the first 60,000 sold by that particular automaker after which the credit is reduced and phased out. Recently the IRS published a guide for manufacturers to certify eligible hybrid
vehicles (see the Tax Incentives Assistance Project or American Council for an Energy-Efficient Economy sites for further info) and the Diesel Technology Forum has information for the advanced lean-burn technology.
Also, the Alternative Fuel Vehicle Tax Credits, available from 2006-2010, provide a 50% tax credit based on the incremental cost of a new, dedicated alternative fuel vehicle, plus an additional 30 percent if the vehicle meets certain tighter emission standards. The amount of the credit is limited ranging from $2,500 to $32,000 depending on the size of the vehicle.
Complete details and information on these incentives can be found on the Alternative Fuel and Advanced Technology Vehicle Incentive Fact Sheet.
Federal and State Incentives to Produce Alternative Fuels
Alternative fuel producers have the opportunity to utilize the Renewable Energy Property Tax Credit of 35% up to $250,000 for the construction, purchase, or lease of a renewable energy property. A 25% tax credit is available to producers that construct and place in service a commercial facility for processing renewable fuel under the 2004 NC House Bill 1636, Tax Credit for Alternative Fuel Production Facilities . In addition, there are Commodity Corporation Credits for the production of ethanol and biodiesel.
The expanded production of alternative fuels will be supported by the renewable fuel standard (RFS) that requires transportation fuel sold in the United States to contain a total of 4 billion gallons of biofuels in 2006, increasing to 7.5 billion gallons in 2012, and the phase out in the use of MTBE for Gasoline as outlined in NC House Bill 1336.
Complete details and information on these incentives can be found on the Alternative Fuel Production Incentive Fact Sheet.
Federal and State Incentives to Distribute Alternative Fuels
The Biodiesel Blenders Tax Credit available from 2005-2008 provides a $1.00 per gallon tax credit for “agri-biodiesel” (first use vegetable oils and animal fats - including palm and fish oil) and a $.50 per gallon tax credit for biodiesel produced from recycled oils and animal fats is available for biodiesel blended with petroleum diesel. A tax refund of 51 cents per gallon on each gallon of ethanol blended with gasoline to be paid within 20-28 days of blending gasoline with ethanol is established with the Volumetric Ethanol Excise Tax Credit (VEETC) available from 2005-2010.
The 2005 Energy Bill included a Refueling Infrastructure Tax Credit of 30% (up to $30,000 – increased to $50,000 by the 2005 Transportation Bill) for refueling equipment for E85 ethanol, compressed natural gas, liquefied petroleum gas, hydrogen, and biodiesel blends containing at least 20 percent biodiesel. A tax credit is available for facilities that dispense biodiesel and ethanol/gasoline mixtures consisting of at least 70% ethanol is available under the NC Tax Credit for Alternative Fuel Refueling Infrastructure.
In addition, the NC Alternative Fuel Tax Exemption states that the retail sale, use, storage or consumption of alternative fuels is exempt from the state’s sales and use tax which is applied to conventional off road fuel sales and is 7% of the sales price. Also the North CarolinaSoybean Producers Association has established the Biodiesel Distributor Rebate Program for new dealers and distributors are eligible for a rebate on the first 250 of 500 gallons of soy biodiesel (B100) purchased as well as 1/2 of the cost of equipment with a maximum of $2,500 per soy biodiesel dealer under the Biodiesel Equipment Enhancement Rebate.
Complete details and information on these incentives can be found on the Alternative Fuel Distributor Incentive Fact Sheet.
Mobile Source Emissions Reduction Grant
Annual solicitations are accepted for NC Department of Environment and Natural Resources’ Division of Air Quality’s Mobile Source Emissions Reduction Grant.
The purpose of the Mobile Source Emissions Reduction Grants is to achieve actual reductions from on- and off- road mobile source related emissions in North Carolina and to assist the State in maintaining the National Air Quality Standards for primarily ozone and carbon monoxide.
Annual application period is Oct 1-Dec 31. Awards are announced in March of the following year.
More information and application available at the following: http://daq.state.nc.us/motor/ms_grants/
State Energy Program (SEP) Special Projects
Funding for AFV, AFV refueling infrastructure, anti-idling and other transportation related projects. For more information about the program and past recipients of the grants visit www.eere.energy.gov/state_energy_program/special_projects.cfm. Those interested in applying for these grants should contact Anne Tazewell of the North Carolina Solar Center or contact your local Clean Cities Program. North Carolina has the Triangle Clean Cities Coalition, the Centralina (Charlotte Area) Clean Fuels Coalition, and the Land of Sky Clean Vehicles Coalition.
Clean Fuel Advanced Technology Grants
Approximately $1.5 million in funding will be available through the NC Solar Center for a program supported by the NC Department of Transportation, NC Division of Air Quality and the State Energy Office.
Grants will be provided for a portion of the incremental costs of alternative fuel vehicles, refueling infrastructure and other projects that reduce mobile emissions in national ambient air quality non-attainment and maintenance counties in NC.
Annual Mobile Clean Air Renewable Energy (CARE) awards will be established to recognize exemplary efforts throughout North Carolina.
Clean Fuel Advanced Technology (CFAT) Program 2007 Request For Proposals
CFAT grant application
CFAT Question & Answer Call Summary
US DOE listing of Incentives and Laws Concerning Alternative Fuels
The DOE’s Energy Efficiency and Renewable Energy Office website provides the latest developments and news for alternative fuels along with a listing of incentives and laws that apply to the technology. Check on Federal Incentives and Laws and North Carolina Incentives and Laws to find a complete up-to-date listing.
The DSIRE Incentives Database
For more information about incentives for all renewable energy technology offered by North Carolina, other states, and the U.S. federal government, see the DSIRE incentives database.
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