Commercial Clean Vehicle Tax Credit (45W)

September 18, 2025

Deadline: September 30, 2025

Federal Agency: Department of the Treasury / IRS

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.

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.

More information: Commercial Clean Vehicle Credit