Commercial Vehicle Tax Credits
A Qualified Commercial Clean Vehicle in the eyes of the IRS is any vehicle (or mobile machinery) that is used on public roads for the commercial transport of people or goods, or for field services, or is used for construction, agriculture, mining, timbering, maritime, etc. and usually carries a commercial lease with it. The following federal tax credits are applied:
Up to $7,500 per vehicle if < 14,000 pounds and battery > 7 kWh
Up to $40,000 per vehicle if > 14,000 pounds and battery > 15 kWh
There is no limit to the number of vehicles in a commercial fleet to which the tax credit applies for.
Non-road mobile machinery is defined as any vehicle that consists of a chassis -
(A) to which there has been permanently mounted (by welding, bolting, riveting, or other means) machinery or equipment to perform a construction, manufacturing, processing, farming, mining, drilling, timbering, or similar operation if the operation of the machinery or equipment is unrelated to transportation on or off the public highways,(B) which has been specially designed to serve only as a mobile carriage and mount (and a power source, where applicable) for the particular machinery or equipment involved, whether or not such machinery or equipment is in operation, and
(C) which, by reason of such special design, could not, without substantial structural modification, be used as a component of a vehicle designed to perform a function of transporting any load other than that particular machinery or equipment or similar machinery or equipment requiring such a specially designed chassis.
Unlike for consumer (non-commercial) vehicles, there are NO restrictions on tax credits in terms of meeting the critical minerals, battery materials, or final assembly in North America requirements.
In addition, there is an Alternative Fuel Refueling Property Credit that can be used for charging electric vehicles:
30% of the cost up to $100,000 + 20% of cost above $100,000 for each charging station installation in eligible locations*
This applies to the construction and installation of all electric charging infrastructure and equipment needed to charge your commerical vehicles.
There may as well be state tax incentives and perks available for commercial vehicles - escpecially for fleets.
* locations must be within an eligible census tract as described in IRC Section 45D(e) or not an urban area as defined by the Bureau of the Census. Meaning low-income, economically disadvanted areas.
