Agency: Department of the Treasury
Description:
Tax credit for certain electric and hydrogen powered fuel cell commercial vehicles
Bill Section:
13403
US Code:
26 USC 45W
New or Existing:
New
Potential Cost:
$3,583,000,000
Timeline:
2023 – 2032
TCS Notes:
Businesses and tax-exempt organizations that buy a qualified commercial clean vehicle may qualify for a clean vehicle tax credit of up to $40,000 under Internal Revenue Code (IRC) 45W. The credit equals the lesser of:
-15% of your basis in the vehicle (30% if the vehicle is not powered by gas or diesel);
-The incremental cost of the vehicle; or
-The maximum credit is $7,500 for qualified vehicles with gross vehicle weight ratings (GVWRs) of under 14,000 pounds and $40,000 for all other vehicles.