The federal section 45W Qualified Commercial Clean Vehicle Credit offers businesses and tax-exempt organizations a powerful incentive to purchase or lease qualified commercial clean vehicles vehicles up to $7,500 for light-duty vehicles (GVWR < 14,000 lbs) or up to $40,000 for heavier vehicles (like buses or trucks). For more details, visit the IRS website here.
Deadline: September 30, 2025
New legislation passed in July has repealed the Commercial Clean Vehicle Credit earlier than expected, moving up its expiration date to September 30, 2025 which is well ahead of the originally planned sunset. This change means that only qualifying clean vehicles acquired and placed in service on or before that date will be eligible for the credit. Businesses considering investing in electric or alternative fuel commercial vehicles should act quickly to take advantage of this valuable incentive before it disappears. After September 30, 2025, no new vehicles will qualify for this credit.
Who Should Claim the Credit & How
The credit is available to businesses and tax-exempt organizations that:
- Use the vehicle primarily for business;
- Acquired a new qualified clean vehicle (not previously used under credit §30D or §45W);
- The vehicle is placed in service in the U.S. and made by a qualified manufacturer listed by the IRS.
Your business may claim multiple credits across eligible vehicles but credits are non-refundable. If you're claiming a tax credit for a clean vehicle, the form you use depends on who you are (refer to the IRS website for full details). Partnerships and S corporations need to fill out Form 8936 to claim the credit. Everyone else, like individuals or regular businesses, reports it on line 1y in Part III of Form 3800. If you're a tax-exempt group like a nonprofit, you still have to file Form 990-T with Form 3800 attached, even if you normally wouldn’t need to file a 990-T.
What About EV Charging Infrastructure Tax Credit 30C?
If you're planning to install an EV charging station in an eligible location, you may qualify for the Alternative Fuel Vehicle Refueling Property Tax Credit (also known as the 30C credit). This federal tax credit helps cover part of the cost of installing electric vehicle charging equipment. To be eligible, the charging station must be up and running also known as “placed into service” by June 30, 2026. So, if you want to take advantage of the savings, be sure to have your charging setup installed and operational by that date. Need financing support for your EV chargers? Check out our accessible commercial loan products here.
Join Our Virtual Workshop on Wednesday, August 27th
Now is the time to learn how to take advantage of these tax credits before they’re gone. Join us on Wednesday, August 27th for a free virtual workshop on how to build electrification for your business. Experts from Xcel Energy, the Colorado Energy Office, Littleton Mayor Pro Tem Steve Barr, and CCEF will walk you through rebates, funding options, and practical steps to get started.
Register here and get your questions answered live!
Electrifying your fleet not only reduces emissions, but it can unlock thousands in tax credits. You won’t want to wait because the deadline is coming up. Ready to start your project but need financing for your EV charging infrastructure? Submit an interest form here and let’s chat more about your project to see how we can help.
