On January 10, 2025, Treasury issued a notice of proposed rulemaking for Section 45W Qualified Commercial Clean Vehicle Credits. Eligible vehicles include some battery electric vehicles (BEVs), plug-in hybrid EVs (PHEVs), fuel cell electric vehicles (FCEVs) and plug-in hybrid fuel cell electric vehicles (PHFCEVs). Credits are calculated by the “lesser amount of either 30% of the vehicle’s basis (15% for PHEV) or the vehicle’s incremental cost in excess of a vehicle comparable in size or use powered solely by gasoline or diesel.”
Section 45W credits are funded by IRA section 13403 for vehicles purchased between 2023 and 2032. Treasury will take public comment on the proposed rules for 60 days following publication in the Federal Register and hold a public hearing on April 28, 2025.