Credit for Qualified Commercial Clean Vehicles

December 22, 2022

Developed by: Inflation Reduction Act

Federal Agency: Department of the Treasury

Tax Credit for Commercial Use or Lease

Description: Provides a tax credit for purchasers of qualified commercial clean vehicles

Recipients: Businesses that acquire motor vehicles or mobile machinery for use or lease; tax-exempt entities that acquire them for use.

Timing: Vehicles placed in service after 1/1/23 and acquired before 1/1/33


  • Base Credit Amount: The amount of the credit is the lesser of (a) 15% of the vehicle’s basis (i.e. its cost to the purchaser) or 30% for vehicles without internal combustion engines, or (b) the amount the purchase price exceeds the price of a comparable internal combustion vehicle. The
    credit is capped at $7,500 for vehicles < 14,000 lbs and $40,000 for all other clean vehicles.
  • Bonus Credit Amount: None

More information: Request for Comments