Section 13403 of the IRA inserts a new section 45W into the IRC. Under the new section 45W, certain purchasers of clean commercial vehicles will be eligible for a tax credit of up to $7,500 for vehicles of up to 14,000 pounds, and $40,000 for vehicles over 14,000 pounds. The credit is available for the purchase or lease of clean vehicles to be used on public roads, with Treasury to issue regulations or guidance on determining the incremental cost of qualifying commercial vehicles. Qualifying commercial clean vehicles include those with an electric motor powered by battery that can charge to at least 15 kilowatt hours for vehicles weighing greater than 14,000 pounds, and 7 kilowatt hours for vehicles under 14,000 pounds. The credit is available for vehicles purchased from 2023 through 2032.
Eligible Entities:
Agency Actions:
- Treasury Issues Incremental Cost Guidance for 2023 Commercial Clean Vehicle Credit
- Treasury Seeks Comments on Commercial Clean Vehicle and Alternative Fuel Refueling Property Credits
- Treasury Issues Fact Sheet on Section 25E, 30D, and 45W Tax Credits
- Treasury Issues Revenue Procedure on Section 25E, 30D, and 45W Tax Credits