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:
Current Status:
Section 70503 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) terminates the availability of the section 45W clean commercial vehicle credit (IRA section 13403) by September 30, 2025.
Trump Administration Actions:
- Congress Passes Budget Bill, Rescinding Funds and Repealing IRA Programs and Tax Credits [07/03/2025]
- Senate Parliamentarian Advises Several Provisions in Republicans’ “One Big, Beautiful Bill” Are Not Permissible, Subject to Byrd Rule [06/19/2025]
- Senate Finance Committee Releases Budget Reconciliation Draft Text [06/16/2025]
- OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025]
- OMB Clarifies Scope of the Order to Halt IRA Spending [01/21/2025]
- Trump Issues Executive Order to Halt All IRA Funding Disbursements [01/20/2025]
Implementation Status at End of Biden Administration:
Biden Administration Actions:
- Treasury Releases Proposed Rules for Commercial Clean Vehicle Tax Credit [01/10/2025]
- IRS Issues Guidance on Commercial Clean Vehicle Credit [12/20/2023]
- Treasury Issues Fact Sheet on Section 25E, 30D, and 45W Tax Credits [02/03/2023]
- Treasury Issues Incremental Cost Guidance for 2023 Commercial Clean Vehicle Credit [12/29/2022]
- Treasury Issues Revenue Procedure on Section 25E, 30D, and 45W Tax Credits [12/12/2022]
- Treasury Seeks Comments on Commercial Clean Vehicle and Alternative Fuel Refueling Property Credits [11/03/2022]
Program Stakes:
The Congressional Research Service and Joint Committee on Taxation estimate taxpayers will claim $14.4 billion in Clean Commercial Vehicle Credits by 2028.