The American Recovery and Reinvestment Act of 2009 (H.R.1) expanded the value of the Alternative Fuel Vehicle Refueling Property Tax Credit and extended the credit through January 1, 2011.

As a result, fueling stations are now eligible to claim a 50% federal income tax credit for the cost of establishing alternative fueling infrastructure, including E85 and ethanol blender pumps. Other fuels eligible include natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, or biodiesel blends of at least B20.

The maximum tax credit is $50,000 for the cost of installing alternative fuel vehicle refueling property to be used in a trade or business of the taxpayer or installed at the principal residence of the taxpayer. The 50% credit is effective for property placed in service after December 31, 2008 and before January 1, 2011.

To claim the infrastructure tax credit, consult Internal Revenue Service (IRS) Form 8911. Owners who install qualified refueling property on multiple sites may utilize the credit for each property; see IRS Form 8911 instructions for definitions of qualifying property and the value of the credit.