Going EV in 2023? Check for your Eligibility for Tax Credits
There has never been a better time for commercial fleets to transition to electrification. Why? Lower operating, fuel and maintenance costs increase the utilization factor over traditional ICE vehicles which means the overall TCO (Total Cost of Ownership) is less than traditional ICE vehicles!
The Inflation Reduction Act of 2022 brought significant advantages to electrifying commercial fleets with credits designed to help consumers offset the transitional costs to electrification. Here’s what you need to know in 2023.
- Electric and fuel cell vehicles purchased between 2023 and 2032
- Have a battery capacity of at least 7 kilowatt hours
- Be made by a qualified manufacturer and produced within North America
- Be for use in your business, not for resale
- Be for use primarily in the United States
- Not have been allowed a credit under sections 30D or 45W
- See full qualification by visiting: https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after
2: Incentive types:
- Business and tax-exempt organizations can take up to $7,500 for qualified vehicles with gross vehicle weight ratings (GVWRs) of under 14,000 pounds and $40,000 for all other vehicles.
- Businesses that purchase and install EV charging equipment in 2023 may be eligible for credits up to 30% of the cost of the equipment
- See full details by visiting: https://www.irs.gov/credits-deductions/commercial-clean-vehicle-credit
Take advantage of significant savings by utilizing the incentives for EVs and EV chargers offered by local electrical utilities, state agencies, and the federal government while taking advantage of the high return on investment over the lifecycle of your fleet operation!