Commercial Clean Vehicle Tax Credit

Businesses and tax-exempt organizations can claim a federal tax credit of up to $40,000 per qualified commercial clean vehicle under the Internal Revenue Code (IRC) 45W. To qualify, vehicles must meet depreciation eligibility requirements unless placed in service by a tax-exempt organization. Additional criteria include battery capacity, weight classification, and compliance with specific energy efficiency standards. There is no limit on the number of credits a business can claim, making this an attractive incentive for fleet upgrades. This tax credit is part of a broader suite of federal clean vehicle incentives aimed at accelerating the transition to zero-emission transportation.