Businesses that buy commercial clean vehicles may qualify for the Commercial Clean Vehicle Credit. It equals the lesser of 15% of the basis of the vehicle (30% if not gas powered) or the vehicle’s incremental cost. The maximum credit is $7,500 for qualified vehicles under 14,000 pounds. The incremental cost is the excess of the vehicle’s purchase price over the price of a comparable gas-powered vehicle. IRS Notice 2024-05 provides a safe harbor for clean vehicles placed in service in 2024. It allows for reliance on the Dept. of Energy’s analysis of incremental costs. The analysis shows the incremental cost of certain clean vehicles less than 14,000 pounds will be greater than $7,500 in 2024.
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