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
Implementation Status/Rulemaking:
On November 3, 2022, the Internal Revenue Service issued Notice 2022-56 which requested comments on the qualified commercial clean vehicles credit (45W credit) and the amendments to the alternative fuel vehicle refueling property credit (30C credit), with comments due December 3, 2022: Source
On December 29, 2022, the Internal Revenue Service issued Notice 2023-09 to provide a safe harbor for certain qualified commercial clean vehicles placed in service in calendar year 2023: Source
On Dec. 20, 2023, the Internal Revenue Service issued Notice 2024-05 to provide a safe harbor for certain qualified commercial clean vehicles placed in service in calendar year 2024: Source
Internal Revenue Service has not finalized the form for claiming the credit: Source
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.