Electric Vehicle Tax Credits for Businesses, Municipalities, and Nonprofits

Overview

The Commercial Clean Vehicle Tax Credit has ended and any vehicles purchased after September 30, 2025 are not eligible to receive this incentive.

Buyer must be a business or tax-exempt organization. Municipalities and nonprofits could be eligible for "elective payments” in lieu of tax credits.
There is no limit on the number of credits your business can claim. The credits are nonrefundable, so you can't get back more on the credit than you owe in taxes.
The vehicle must be subject to a depreciation allowance, with an exception for vehicles placed in service by a tax-exempt organization and not subject to a lease.
The vehicle must be made by a qualified manufacturer. See a list of qualified manufacturers here.
The vehicle must be for business use, not for resale.
The vehicle must be primarily for use on public roads, or be defined as mobile machinery.
The vehicle must be a plug-in electric vehicle with battery capacity of at least 7 kWh (gross vehicle weight under 14,000 pounds) or 15 kWh (gross vehicle weight 14,000 pounds or more).

If you purchased a qualifying EV by September 30, 2025, please refer to the information below on how to claim the credit.

First, confirm that you're eligible for the federal tax credit by reviewing the IRS Commercial Clean Vehicle Credit guidelines.
Purchase the vehicle(s).
Refer to the IRS guidelines for instructions on filing the appropriate tax form(s), potentially consulting a tax professional in the process.