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26 U.S. Code § 45W

IRA Statuatory Location:

13403

Tax Code Location:

26 U.S. Code § 45W

New or Modified Provision:

New

Eligible Recipients:

Businesses that acquire motor vehicles or mobile machinery for use or lease; tax-exempt entities that acquire them for use.

Tribal Eligibility:

Yes

Funded by:

U.S. Department of Treasury

Description

Provides a tax credit for purchasers of qualified commercial clean vehicles
Direct Pay Eligibility:
None
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 vehicle’s 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
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