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Schedule AFTC-1
ALTERNATIVE FUEL TAX INFORMATION AND INSTRUCTIONS
**The following information, instructions and forms are not a substitute for tax laws and regulations.**

Signi ﬁcant changes to the Alternative-Fuel Tax Credit Program took e ﬀect in 2013. These include:
• For purchases made on or after April 15, 2013, the only vehicles qualifying for tax credits are natural gas
fueled vehicles.

• Alternative-Fuel Home Infrastructure Tax Credits only apply to quali edﬁinstallations made prior to
April 15, 2013.

Due to the mid-year e ﬀective date of these substantive tax changes, the bill of sale must be attached to every
valid claim for tax credit in 2013.

Please note: claiming this credit may result in additional processing time and may delay the issuance of your
refund.

These instructions are for the Schedule AFTC-1 for Periods beginning on or after January 1, 2015.
The purpose of the Alternative-Fuel Tax Credits is to encourage 2. Lique ﬁ ed natural gas;
the use of alternatively-fueled motor vehicles and possibly reduce 3. Lique ﬁ ed petroleum gas;
unnecessary pollution of the environment and reduce dependence
on foreign sources of energy. 4. Fuel mixtures that contain eighty- veﬁpercent or more by
volume, when combined with gasoline or other fuels, of the
An Alternative-Fuel Tax Credit is available for the following: following:
• The purchase of a new dedicated or bi-fueled alternative- A. Methanol,
fuel motor vehicle for which the purchaser then obtains a B. Ethanol, or
valid West Virginia vehicle registration. C. Other alcohols;
• The conversion of a motor vehicle that is presently registered 5. Natural gas hydrocarbons and derivatives;
in West Virginia to operate exclusively on an alternative fuel.
6. Hydrogen; and
• Constructs or purchases and installs a quali ed ﬁvehicle
refueling infrastructure that is capable of dispensing 7. Electricity, including electricity from solar energy.
alternative fuel for alternative-fuel motor vehicles. “Alternative-fuel motor vehicle” means a motor vehicle that is a new
• Constructs and installs a quali edﬁ alternative fuel vehicle or retro ﬁtted or converted fuel vehicle:
refueling infrastructure that is capable of dispensing
alternative fuel for alternative-fuel motor vehicles. 1. Operates solely on one alternative fuel;
The Alternative-Fuel Tax Credit is not available to any taxpayer 2. Is capable of operating on one or more alternative fuels,
under any obligation pursuant to any federal or state law, policy or singly or in combination; or
regulation to convert to the use of alternative fuels for any motor 3. Is capable of operating on an alternative fuel and is also
vehicle. capable of operating on gasoline or diesel fuel.
Available Alternative-Fuel Tax Credit may be applied against tax “Bi-fueled” means the ability of an alternative-fuel motor vehicle to
liability attributable to Personal Income Tax (WV Code §11-21 et operate on an alternative fuel and another form of fuel.
seq.), or Corporation Net Income Tax (WV Code §11-24 et seq.).
“Plug-in hybrid electric vehicle” means:
In no case may more than one credit be granted for the same
alternative-fuel vehicle. No Alternative-Fuel Tax Credit may be 1. A plug-in hybrid electric vehicle manufactured by an
applied against employer Withholding Tax Imposed by WV Code established motor vehicle manufacturer of plug-in hybrid
§11-21 et seq. electric vehicles that can operate solely on electric power
and that is capable of recharging its battery from an on-
The Alternative-Fuel Tax Credit is available for tax years beginning
board generation source and an o ﬀ -board electricity source;
on or after January 1, 2011.
and
ALTERNATIVE-FUEL TAX CREDIT 2. A plug-in electric vehicle conversion that provides an
increase in city fuel economy of seventy- ﬁve percent or more
DEFINITIONS as compared to a comparable non-hybrid version vehicle for
“Alternative fuel” includes: a minimum of twenty miles and that is capable of recharging
its battery from an on-board generation source and an o -ﬀ
1. Compressed natural gas; board electricity source. A vehicle is comparable if it is the
same model year and the same vehicle class as established
WEST VIRGINIA STATE TAX DEPARTMENT
AFTC-1 Instructions — Rev. 9/15 Page 1 of 4

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     by the United States Environmental Protection  Agency                  related or not.
     and is comparable in weight, size, and use. Fuel economy               Solar panels cannot store or dispense electrical power, therefore 
     comparisons shall be made using city fuel economy in                   they do not qualify for the alternative fuel vehicle home refueling 
     a manner that is substantially similar to the manner in                infrastructure tax credit, set forth in West Virginia Code §11-6D-1 
     which city fuel economy is measured in accordance with                 et seq. However, the “dispensing units” for “providing electricity to 
     procedures set forth in 40 C.F.R. 600 as in e ﬀ         ect on January plug-in hybrid electric vehicles or electric vehicles” will qualify as 
     1, 2011.                                                               credit base for alternative fuel vehicle home refueling infrastructure.
“Quali ﬁed alternative fuel vehicle refueling infrastructure” means 
property owned by the applicant for the tax credit and used for             Purchase, construction and installation costs for the following 
storing alternative fuels for dispensing such alternative fuels into fuel   will typically qualify for the quali ﬁed alternative fuel vehicle home 
tanks of motor vehicles, including, but not limited to, compression         refueling infrastructure tax credit for providing electricity to plug-in 
equipment, storage tanks, and dispensing units for alternative fuel         hybrid electric vehicles or electric vehicles:
at the point where the fuel is delivered: provided, that the property 
is installed and located in this state and is not located on a private           Electric car charging stations, including plugs, sockets 
residence or private home.                                                       (other than standard domestic wall sockets), cables, 
                                                                                 circuit wiring, safety equipment, grid interface equipment, 
“Quali ﬁed alternative fuel vehicle home refueling infrastructure”    1          including smart grid equipment, current sensors and 
means property owned by the applicant for the tax credit located                 monitors, feedback sensors and sensor wires and other 
on a private residence or private home and used for storing                      apparatus and equipment exclusively used to provide 
alternative fuels and for dispensing such alternative fuels into fuel            electricity to plug-in hybrid electric vehicles or electric 
tanks of motor vehicles, including, but not limited to, compression              vehicles, in West Virginia.
equipment, storage tanks and dispensing units for alternative fuel 
at the point where the fuel is delivered or for providing electricity to    An owner taxpayer desiring to claim Alternative-Fuel  Tax Credit 
plug-in hybrid electric vehicles or electric vehicles:       provided, that allocated by a Pass-Through Entity subsidiary must complete Parts 
the property is installed and located in this state.                        A and E of Schedule AFTC-1.

“Taxpayer” means any natural person, corporation, limited liability         PART A – ALTERNATIVE-FUEL TAX CREDIT 
company or partnership subject to the tax imposed under article                                        SUMMARY
twenty-one, article twenty-three, or article twenty-four of this 
chapter or any combination thereof.                                         Line 1  Enter the total Alternative-Fuel Motor Vehicle Tax Credit 
                                                                                    as shown on Part B, line 9. A completed Part B must 
                                                                                    be attached for each qualifying vehicle. Amounts not 
               AFTC-1 INSTRUCTIONS
                                                                                    supported by completed Part B information will be 
Taxpayers desiring to claim the Alternative-Fuel Motor Vehicle Tax                  denied.
Credit must complete Parts A and B of Schedule AFTC-1.
                                                                            Line 2  Enter the total Quali ﬁed Alternative-Fuel Vehicle Home 
Taxpayers desiring to claim the Quali ﬁed Alternative-Fuel Vehicle                  Refueling Infrastructure Tax Credit as shown on Part 
Home Refueling Infrastructure Tax Credit must complete Parts A                      C, line 7. Amounts not supported by completed Part C 
and C of Schedule AFTC-1.                                                           information will be denied.
Taxpayers desiring to claim the Quali ﬁed Alternative-Fuel Vehicle          Line 3  Enter the total Quali  ed ﬁAlternative-Fuel  Vehicle 
Refueling Infrastructure Tax Credit must complete parts A and D of                  Refueling Infrastructure Tax Credit as shown on Part 
Schedule AFTC-1.                                                                    D, line 7.  A completed Part D must be attached for 
                                                                                    each qualifying refueling infrastructure.  Amounts not 
   ALTERNATIVE FUEL MOTOR VEHICLE                                                   supported by completed Part D information will be 
        INFRASTRUCTURE CREDIT AND                                                   denied.
        ELECTRICAL INSTALLATIONS                                            Line 4  Enter the amount of  Alternative-Fuel Motor Vehicle 
No part of any investment in or expenditure for commercial or non-                  Tax Credit Quali ﬁ     ed Alternative-Fuel Vehicle Refueling 
home alternative fuel vehicle refueling infrastructure for charging                 Infrastructure Tax Credit, as shown in Part E, allocated 
or serving plug-in hybrid electric vehicles or electric vehicles will               to you as an owner of a Pass-Through Entity that 
qualify for the tax credit.                                                         earned the credit. A completed Part E must be attached. 
                                                                                    Amounts not supported by completed Part E information 
The tax credit base for, quali  edﬁalternative fuel vehicle home                    will be denied.
refueling infrastructure for charging or serving plug-in hybrid 
electric vehicles or electric vehicles is limited to dispensing units       Line 5  Enter any Alternative-Fuel Tax Credit earned or allocated 
for providing electricity to plug-in hybrid electric vehicles or electric           in a previous year that was not used or allocated. An 
vehicles, in West Virginia.                                                         AFTC-1 supporting the entered amounts must have 
Purchase, construction and installation costs for quali  ed ﬁ    home               been previously   led.ﬁ      In order to claim previously 
infrastructure property that is exclusively dedicated to providing                  unclaimed Alternative Fuel Tax Credit for prior years, 
electricity to plug-in hybrid electric vehicles or electric vehicles, in            an amended tax return (IT-140, IT-140NRC, CIT-120, 
West Virginia, owned by the tax credit applicant, will qualify for the              and/or PTE-100) must be  ﬁled for each previous year 
tax credit without regard to whether the property is solar power                    that credit is being claimed.  Any and all supporting 
                                                                                    documentation must be presented or the claim for credit 
1      Applicable only if installed prior to April 15, 2013.                        will be denied.
WEST VIRGINIA STATE TAX DEPARTMENT
AFTC-1 Instructions — Rev. 9/15                                                                                                    Page 2 of 4

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Line 6 Add the amounts on lines 1 through 5. This the total Line 5 Enter the purchase date and purchase price or the
Alternative-Fuel Tax Credit available to you for the conversion date and actual cost of conversion for the
current tax period. vehicle identi ﬁed on line 1. Purchase price means the
sales price of the vehicle less any amount deducted
Line 7 Enter your Personal Income Tax liability after application therefrom for any trade-in allowance and/or rebates
of any other applicable tax credit (Line 10 of Form IT- from the manufacturer or dealer.
140.
Line 6 Enter the appropriate credit factor for the vehicle
Line 8 Enter the smaller of the value on line 6 and the value on identi ﬁed on line 1. Enter 0.35 (35%) if the vehicle was
line 7. This is the amount of Alternative-Fuel Tax Credit purchase new; enter 0.50 (50%) if the vehicle was
to be applied against your Personal Income Tax liability. converted to use alternative fuel and was previously
Also, enter this amount on the appropriate line of the registered with the West Virginia Division of Motor
Tax Credit Recap Schedule of your Personal Income Vehicles.
Tax return.
Line 7 Compute the potential credit by multiplying the price
Line 9 Compute the remaining Alternative-Fuel Tax Credit by (line 5A) or the actual cost of conversion (line 5B) by
subtracting the amount on line 8 from the amount on the value on line 6.
line 6.
Line 8 Enter the maximum allowable credit. Enter $7,500 if the
Line 10 Enter your Corporation Net Income Tax liability after gross vehicle weight (from line 4) is less than 26,000
application of any other applicable tax credit (Line 16 of pounds, otherwise enter $25,000.
CIT120).
Line 9 Compute Available Alternative-Fuel Motor Vehicle
Line 11 Enter the smaller of the value on line 9 and the value on Credit as the smaller of the value on line 7 (potential
line 10. This is the amount of Alternative-Fuel Tax Credit credit) and the value on line 8 (maximum allowable
to be applied against your Corporation Net Income Tax credit). Also, enter this value on Part A, line 1.
liability. Also, enter this amount on the appropriate line
of the Tax Credit Recap Schedule of your Corporation Check the boxes under line 9 to certify the following:
Net Income Tax return.
• Payment for the vehicle entered on line 1 has been made
Line 12 Compute the remaining Alternative-Fuel Tax Credit by after January 1, 2011 and on or before April 14, 2013.
subtracting the amount on line 11 from the amount on • Person claiming the credit on line 9 has taken possession
line 9. of the vehicle after January 1, 2011 and on or before April
Line 13 If you are a Pass-Through Entity and any of the amount 14, 2013.
on line 12 is to be allocated to the owners of the Pass- • Person claiming the credit on line 9 maintained ownership
Through Entity complete Part F and enter the total of the vehicle entered on line 1 through December 31, 2013.
amount of credit to be allocated. By checking these boxes and signing the tax return, the
Line 14 Enter the amount of unused, unallocated Alternative- purchaser certi ﬁed this information to be true.
Fuel Tax Credit for carry forward to subsequent years.
PART C – QUALIFIED ALTERNATIVE-FUEL
PART B – ALTERNATIVE-FUEL MOTOR HOME REFUELING INFRASTRUCTURE TAX
VEHICLE TAX CREDIT CREDIT
**A COPY OF THE BILL OF SALE IS REQUIRED FOR **APPLICABLE ONLY FOR INSTALLATIONS MADE
NEW VEHICLE PURCHASES OR ANY INVOICES PRIOR TO APRIL 15, 2013**
ASSOCIATED WITH A CONVERSION.**
Line 1 Enter the city, state, and Zip Code of the location of
Line 1 Enter the Vehicle Identi ﬁcation Number (VIN) for which the Quali ﬁed Alternative-Fuel Vehicle Home Refueling
an Alternative-Fuel Motor Vehicle Tax Credit is to be Infrastructure.
claimed. A separate Part B must be completed for
each vehicle for which credit is to be claimed. Line 2 Enter the date of installation. Submit all documentation
related to the construction of the Quali ﬁed Alternative-
Line 2 Check the box for the predominant alternative fuel Fuel Vehicle Home Refueling Infrastructure. All
used by the vehicle identi edﬁ on line 1. NOTE: Any documentation submitted must have dates on or before
options other than Compressed Natural Gas (CNG), April 14, 2013.
Lique ﬁed Natural Gas (LNG) or Lique ﬁ ed Petroleum
Gas (LPG) are not available for vehicles purchased Line 3 Enter the total cost of the construction or purchase of
on or after April 15, 2013. the Quali ﬁed Alternative-Fuel Vehicle Home Refueling
Infrastructure. Do not include costs associated with
Line 3 Enter the West Virginia Division of Motor Vehicles exploration, development, or production activities
Registration Number for the vehicle identi ﬁed on line 1. necessary for severing natural resources from the soil or
ground.
Line 4 Enter the gross vehicle weight, in pounds, of the vehicle
identi ﬁed on line 1. Line 5 Compute the potential credit by multiplying the actual
WEST VIRGINIA STATE TAX DEPARTMENT
AFTC-1 Instructions — Rev. 9/15 Page 3 of 4

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cost of the Quali ed ﬁ Alternative-Fuel Vehicle Home (b). For tax periods after January 1, 2014 but prior
Refueling Infrastructure (from line 3) by the value on to January 1, 2018 – Maximum credit is 20% of the
line 4. total cost per facility up to a maximum of $400,000.
Line 7 Compute the Quali ﬁed Alternative-Fuel Vehicle Home When the purchase and installation or quali edﬁ alternative fuel
Refueling Infrastructure as the smaller of the value on vehicle infrastructure begins prior to January 1, 2014, but is not
line 5 (potential credit) and the value on line 6 ($10,000 completed and placed into service until after January 14, the
maximum allowable credit). Also, enter the value on taxpayer may choose to fall under the rules of either (a) or (b) but
Part A, line 2. not both.
Line 7 Compute the Quali ﬁ ed Alternative-Fuel Vehicle Refueling
PART D – QUALIFIED ALTERNATIVE-FUEL Infrastructure as the smaller of the value on line 5 (potential
REFUELING INFRASTRUCTURE TAX CREDIT credit) and the value on line 6 (maximum allowable credit).
Also, enter the value on part A, line 3.
Line 1 Enter the city, state, and Zip Code of the location of
the Quali ﬁed Alternative-Fuel Vehicle Home Refueling
Infrastructure. A separate Part D must be completed PART E – ALTERNATIVE-FUEL MOTOR
for each alternative-fuel refueling infrastructure for VEHICLE TAX CREDIT AND/OR QUALIFIED
which credit is to be claimed. ALTERNATIVE-FUEL REFUELING
Line 2 Enter the total cost of the construction or purchase INFRASTRUCTURE TAX CREDIT ALLOCATED
of the Quali ed ﬁ Alternative-Fuel Vehicle Refueling FROM PASS-THROUGH ENTITY
Infrastructure. Do not include costs associated with
exploration, development, or production activities Enter the name and Employer Identi ﬁcation Number (EIN) of the
necessary for severing natural resources from the soil Pass-Through Entity and the amount of Alternative-Fuel Motor
or ground. Vehicle Tax Credit and/or Quali ed ﬁAlternative-Fuel Refueling
Infrastructure Tax Credit allocated to you as an owner of the Pass-
Line 3 Enter the appropriate public accessibility factor. Through Entity. The Pass-Through Entity must establish original
If the Quali ed ﬁ Alternative-Fuel Vehicle Refueling entitlement to Alternative-Fuel Motor Vehicle Tax Credit and/
Infrastructure identi ﬁed above is generally available for or Quali ﬁed Alternative-Fuel Refueling Infrastructure Tax Credit
public use enter 1.25, otherwise enter 1.00. through the ﬁling of their own Schedule AFTC-1
Line 4 Enter the appropriate credit factor. If the value on line Enter the total of credit allocated on Part A, line 4.
3 is 1.25 then enter 0.625 (62.5%), otherwise enter
0.50 (50%). PART F – UNUSED ALTERNATIVE-FUEL TAX
CREDIT ALLOCATION TO OWNERS
Line 5 Compute the potential credit by multiplying the actual
total cost of the Quali ed ﬁAlternative-Fuel Vehicle When the Taxpayer that earns original entitlement to Alternative-
Refueling Infrastructure (from line 2) by the value on Fuel Tax Credit is a pass-through entity, any credit unused to
line 4. o ﬀset the tax liability of the pass-through entity is to be allocated
to the owners of the pass-through entity in the same manner that
Line 6 The maximum allowable credit is to be determined by distributive share ﬂows through to the equity owners.
following either of these two rules:
Enter the name, identi ﬁcation number, ownership percentage, and
(a). For tax periods after December 31, 2010 but amount of unused credit allocated for each equity owner.
prior to January 1, 2014 – If line 3 is 1.00, the
maximum credit is $250,000. If Line 3 is 1.25, Enter the total allocated credit on Part A, line 16.
maximum credit is $312,000.

WEST VIRGINIA STATE TAX DEPARTMENT
AFTC-1 Instructions — Rev. 9/15 Page 4 of 4

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