Tax Credits for Businesses, Municipalities, and Nonprofits
- Available through
- Dec 31, 2032
- Technology
- All-electric vehicles, Plug-in hybrid vehicles (New)
- Customer
- Business, municipality & nonprofit
- Customer Eligibility
- Available to All
- Tax Credit Value up to
- $40,000
Provided by: U.S. Internal Revenue Service
Overview
Businesses purchasing EVs could be eligible for a 30% tax credit, up to $7,500 for vehicles less than 14,000 pounds or up to $40,000 for vehicles over 14,000 pounds. There is no limit on the number of credits your business can claim, provided you have the tax liability to offset them. It's a great time to electrify your fleet!
Eligibility
- 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).
How to Redeem
- 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.