Federal Tax Credits
Qualified Commercial Clean Vehicle tax credit: $7,500 for light-duty EVs, $40,000 for Medium-Heavy Duty Vehicles.
The Inflation Reduction Act established a tax credit for qualified commercial clean vehicles purchased on or after January 1, 2023. Known as the Qualified Commercial Clean Vehicle tax credit, this provides up to a $40,000 tax credit for the adoption of electric medium-duty and heavy-duty trucks.
- For vehicles under 14,000 lbs. (class 3 and under) you qualify for a $7,500 credit.
- For vehicles larger than 14,000 lbs. (class 4 and up) you qualify for a $40,000 tax credit.
- These credits can be transferred to the dealer and be used as a point of sale credit.
- Have a battery rating of not less than 7 kilowatt hours.
- Importantly, for businesses, the credits are not tied to any domestic production or sourcing requirements. This means that the pool of electric vehicles available to business owners will be larger than what is available for consumer tax credits.