The U.S. Department of the Treasury and IRS released proposed regulations on Jan. 10, 2025, regarding the qualified commercial clean vehicle credit under Section 45W of the Internal Revenue Code, as enacted by the Inflation Reduction Act (IRA).
Section 45W is effective for vehicles acquired after Dec. 31, 2022, and before Jan. 1, 2033. The credit equals the lesser of 1) 15 percent of the vehicle's basis (30 percent for vehicles not powered by a gasoline or diesel internal combustion engine), and 2) the incremental cost of the vehicle.
The Holland & Knight Energy Tax Team is reviewing the proposed regulations and will provide additional analysis. To receive this forthcoming analysis, please subscribe to our alerts and access the Holland & Knight IRA Tax Resource Library.
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