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Eligible: Businesses, Nonprofits, Public Agencies, Utilities

Apply by Dec 31, 2032

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$0 - $40,000

Commercial Clean Vehicle Credit

From Internal Revenue Service (IRS)

Businesses and tax-exempt organizations that buy a qualified commercial clean vehicle may qualify for a clean vehicle tax credit under Internal Revenue Code (IRC) 45W. For vehicles less than 14,000 pounds (typically cars, vans, trucks, and similar passenger-sized vehicles): maximum credit $7,500. For vehicles 14,000 pounds or more (typically larger vehicles like school buses and semi-trucks): maximum credit $40,000.

  • Overview

    • Type

      Tax Incentive

    • Title

      Commercial Clean Vehicle Credit

    • Source

      Internal Revenue Service (IRS)

    • Federal or State

      Federal

    • Award Range

      $0 - $40,000

  • Eligibility

    • Audience

      Businesses, Nonprofits, Public Agencies, Utilities

    • Sector

      Transportation

    • Activity

      Equipment Purchase/Lease

    • Eligibility

      Businesses and tax-exempt organizations qualify for the credit. There is no limit on the number of credits a business can claim. For businesses, the credits are nonrefundable, so you can’t get back more on the credit than you owe in taxes. A 45W credit can be carried over as a general business credit.

    • Location

      National

  • Application Process

    • Application Link

      irs.gov

    • Pre-Application?

      No

    • Requirements

      To qualify, a vehicle must be subject to a depreciation allowance, with an exception for vehicles placed in service by a tax-exempt organization and not subject to a lease. The vehicle must also: be made by a qualified manufacturer as defined in IRC 30D(d)(1)(C) (see the IRS index of qualified manufacturers); be for use in a business, not for resale; be for use primarily in the United States; not have been allowed a credit under sections 30D or 45W.

    • Disbursement Method

      Credit on federal taxes

  • Important Dates

    • Application Open Date

      Jan 1, 2023

    • Application Close Date

      Dec 31, 2032

  • Resources & Contacts

    • Resources

      About Form 8936, Clean Vehicle Credit: https://www.irs.gov/forms-pubs/about-form-8936

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