Fed Incentives: Inflation Reduction Act

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Commercial Vehicle Tax Credits




Current Status

The commercial clean vehicle credit (Section 45W) ended for vehicles acquired after September 30, 2025. The alternative fuel vehicle refueling property credit (Section 30C), which covered EV chargers, ended for property placed in service after June 30, 2026. Both end dates come from the One Big Beautiful Bill Act (OBBBA, Public Law 119-21), signed July 4, 2025. Nothing replaced either credit.

Program Status Key Date
Commercial clean vehicle credit (45W) Ended Acquired by Sept 30, 2025
Charger credit (30C) Ended In service by June 30, 2026
DERA diesel grants Active 2026 notice Oct 7, 2026
Clean Heavy-Duty Vehicles grants Closed Funds rescinded by OBBBA
Low-No bus grants Active FY2026 round closed Sept 21, 2026

What the Commercial Vehicle Credit Was

Section 45W covered qualified commercial clean vehicles: vehicles used on public roads to carry people or goods, or for field services, and mobile machinery used in construction, agriculture, mining, timbering and similar work. The credit was:

  • Up to $7,500 per vehicle under 14,000 pounds with a battery over 7 kWh
  • Up to $40,000 per vehicle over 14,000 pounds with a battery over 15 kWh

There was no limit on the number of vehicles in a fleet. Unlike the consumer credit, 45W had no critical mineral, battery component or North American assembly requirements.

Mobile machinery qualified when it was built on a chassis specially designed to carry and power construction, manufacturing, farming, mining, drilling, timbering or similar equipment, and that chassis could not haul other loads without substantial structural changes.

What the Charger Credit Was

Section 30C covered the cost of charging equipment and installation for business fleets. For businesses it was 6% of cost, or 30% if prevailing wage and apprenticeship requirements were met, capped at $100,000 per item. The property had to be in an eligible census tract (low-income or non-urban). Property placed in service by June 30, 2026 is still claimed on 2026 returns using Form 8911.

See EV Charging Infrastructure Tax Credits for details.

Key Dates

  • July 4, 2025: OBBBA signed.
  • September 30, 2025: Last date a commercial vehicle could be acquired and qualify for 45W.
  • June 30, 2026: Last date charging property could be placed in service and qualify for 30C.

What Still Applies

Some federal and state programs still fund fleet vehicles as of October 2026:

  • Diesel Emissions Reduction Act (DERA) grants: EPA announced a 2026 national funding notice on October 7, 2026, with about $180 million for retrofitting or replacing older diesel equipment. The notice does not mention zero-emission vehicles specifically. The deadline is reported as January 22, 2027.
  • FTA Low or No Emission Bus Program (Low-No): The FY2026 round offered about $589 million and closed September 21, 2026. FTA now ranks low-emission projects ahead of zero-emission ones.
  • EPA Clean Heavy-Duty Vehicles grants: Closed. OBBBA rescinded the unobligated balance.
  • California Clean Fuel Reward truck rebates: Open, with $250 million in 2026 and more than $1 billion through 2030, funded by the Low Carbon Fuel Standard.

See State EV Laws & Initiatives for more state programs.

Sources


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