26 USC 45W - Credit for qualified commercial clean vehicles

U.S Code last checked for updates: Nov 22, 2024

§ 45W.

Credit for qualified commercial clean vehicles

(a)

In general

(b)

Per vehicle amount

(1)

In general

Subject to paragraph (4), the amount determined under this subsection with respect to any qualified commercial clean vehicle shall be equal to the lesser of—

(A)

15 percent of the basis of such vehicle (30 percent in the case of a vehicle not powered by a gasoline or diesel internal combustion engine), or

(B)

the incremental cost of such vehicle.

(2)

Incremental cost

(3)

Comparable vehicle

(4)

Limitation

The amount determined under this subsection with respect to any qualified commercial clean vehicle shall not exceed—

(A)

in the case of a vehicle which has a gross vehicle weight rating of less than 14,000 pounds, $7,500, and

(B)

in the case of a vehicle not described in subparagraph (A), $40,000.

(c)

Qualified commercial clean vehicle

For purposes of this section, the term “qualified commercial clean vehicle” means any vehicle which—

(1)

meets the requirements of section 30D(d)(1)(C) and is acquired for use or lease by the taxpayer and not for resale,

(2)

either—

(A)

meets the requirements of subparagraph (D) of section 30D(d)(1) and is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails), or

(B)

is mobile machinery, as defined in section 4053(8) (including vehicles that are not designed to perform a function of transporting a load over the public highways),

(3)

either—

(A)

is propelled to a significant extent by an electric motor which draws electricity from a battery which has a capacity of not less than 15 kilowatt hours (or, in the case of a vehicle which has a gross vehicle weight rating of less than 14,000 pounds, 7 kilowatt hours) and is capable of being recharged from an external source of electricity, or

(B)

is a motor vehicle which satisfies the requirements under subparagraphs (A) and (B) of section 30B(b)(3), and

(4)

is of a character subject to the allowance for depreciation.

(d)

Special rules

(1)

In general

(2)

Vehicles placed in service by tax-exempt entities

(3)

No double benefit

(e)

VIN number requirement

(f)

Regulations and guidance

(g)

Termination

(Added Pub. L. 117–169, title I, § 13403(a), Aug. 16, 2022, 136 Stat. 1964.)

cite as: 26 USC 45W