New tax credits are available for commercial vehicles placed in service between 2023-2032
The credit is equal to the lesser of:
• 15% of the vehicle’s basis (30% if the vehicle is not powered by a gasoline or diesel internal combustion engine); or
• The excess of the vehicle’s purchase price over the cost of a comparable vehicle in terms of size and use, which is powered solely by a gasoline or diesel internal combustion engine.
The credit is capped at $40,000 per vehicle ($7,500 for vehicles with a gross vehicle weight rating
of less than 14,000 pounds). Unlike the Clean Vehicle Credit, the Qualified Commercial Clean Vehicle Credit cannot be transferred to the dealer at the time of purchase.
A qualified commercial clean vehicle is a vehicle that:
• The original use of which commences with the taxpayer;
• Is made by a qualified manufacturer (one that registers with the Secretary of the Treasury
and discloses specified information to the IRS, including the vehicle’s VIN);
• Is acquired for use or lease by the taxpayer and not for resale;
• Either is:
o A motor vehicle under Title II of the Clean Air Act; or
o A mobile machinery under IRC §4053(8);
• Either is:
o Propelled to a significant extent by an electric motor that draws electricity from a battery
with a minimum capacity of 15 kilowatt hours (seven kilowatt hours for vehicles that
weigh less than 14,000 pounds) and is capable of being recharged from an external
source of electricity; or
o A fuel cell vehicle as defined under IRC §30B; and
• Is subject to depreciation
Miscellaneous rules: The Qualified Commercial Clean Vehicle Credit cannot be claimed for a vehicle for which the taxpayer claimed the Clean Vehicle Credit under IRC §30D.