§45W Credit for qualified commercial clean vehicles

Summary

Allows a tax credit for each qualified commercial clean vehicle a taxpayer puts into service in a year. The credit for each vehicle is the smaller of (a) 15% of the vehicle’s tax basis (30% if it is not powered by a gasoline or diesel internal combustion engine) or (b) the incremental cost (the purchase price minus the price of a comparable gasoline/diesel vehicle). The credit per vehicle cannot be more than $7,500 for vehicles with a gross vehicle weight rating under 14,000 pounds, or $40,000 for heavier vehicles. You must include the vehicle identification number (VIN) on your tax return. No credit is allowed if a credit was already claimed under section 30D. The Treasury Secretary will issue rules, including how to figure incremental cost. No credit is allowed for vehicles acquired after September 30, 2025. A “qualified commercial clean vehicle” must meet these simple points: it must meet the rules in section 30D(d)(1)(C) and be bought to use or lease (not to resell); it must either be built mainly for public streets, roads, and highways (meeting 30D(d)(1)(D)) or be mobile machinery as defined in section 4053(8); it must be largely powered by an electric motor with a battery of at least 15 kilowatt-hours (or 7 kilowatt-hours for vehicles under 14,000 pounds) that can be recharged from an outside source, or meet the motor-vehicle rules in section 30B(b)(3)(A) and (B); and it must be the kind of property that is eligible for depreciation. The depreciation requirement does not apply to vehicles that are not leased and are placed in service by certain tax-exempt entities listed in section 168(h)(2)(A)(i), (ii), or (iv).