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- Tax Credit
IRA Statuatory Location:
13403
Tax Code Location:
26 U.S. Code § 45W
New or Modified Provision:
New
Eligible Recipients:
Vehicle consumers
Tribal Eligibility:
Yes
Bureau/Office
Funded by:
U.S. Department of Treasury
Description
Provides a tax credit for purchasers of qualified commercial clean vehicles Businesses that acquire motor vehicles or mobile machinery for use or lease; tax-exempt entities that acquire them for use.
Direct Pay Eligibility:
Yes, for states, political subdivisions, tax-exempt organizations (other than co-ops described in section 521), and Indian Tribal governments.
Transferability:
No
Stackability:
Cannot claim both the 30D credit and 45W credit.
Energy Community Bonus:
No
Relevant Announcements
Related Resources
Additional information is available on the Resources page.Key Details
Period of Availability
Vehicles placed in service after 1/1/23 and acquired before 1/1/33.
Tax Mechanism:
Tax credit for commercial use or lease
Base Credit Amount:
The amount of the credit is the lesser of (a) 15% of the vehicles basis (i.e. its cost to the purchaser) or 30% for vehicles without internal combustion engines, or (b) the amount the purchase price exceeds the price of a comparable internal combustion vehicle. The credit is capped at $7,500 for vehicles < 14,000 lbs and $40,000 for all other clean vehicles.
Bonus Credit Amount:
None