IRA EV Tax Credits for Fleets: Calculating $7,500 to $40,000 Eligibility

The Fast Forward video series connects leaders in fleet, tech, and automotive to show what the future holds for fleets of all types. In episode 27, Chris Brown, Bobit fleet group editor, connects with David Schwietert, chief policy officer for the Alliance for Automotive Innovation. They discuss the Inflation Reduction Act’s electric vehicle tax credits and how fleets can calculate eligibility by purchaser and vehicle type and class.  

The cost differentials and BEV premiums demonstrated in the video are from this U.S. Department of Energy Analysis. For 2023, the Treasury Department has effectively granted eligible taxpayers safe harbor regarding calculations of those differentials, premiums, and credits. Calculations are subject to change after 2023. The Treasury notice on 45W can be accessed here.  

🎙Topics & Timestamps

• 0:00 Intro
• 1:00 About the Alliance for Automotive Innovation.
• 2:00 What’s the difference between Section 30D, the credit for consumers, and Section 45W, the credit for commercial vehicle operators?
• 3:50 Explanation of 45W qualifications for vehicle types and purchasers, including slide.
• 4:52 Slide depiction of representative average vehicle costs and representative incremental EV costs by vehicle class.
• 6:03 Slide depiction of per-vehicle credit calculation.
• 8:34 Slide: Credit calculation example for Class 4-6 box truck, Class 8 tractor.
• 11:10 Explanation of Treasury’s revised guidance on certain SUV model classifications to obtain the $7,500 credit under 30D based on MSRP cap.  
• 13:15 Explanation of content provision thresholds for critical minerals and battery components coming in March for Section 30D eligibility.

This video segment represents an overview of certain provisions of the Inflation Reduction Act, and it should not be construed as legal advice. Individuals and companies are encouraged to review the Act with their tax counsel and/or accountants. 

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