What is incremental cost, and will that affect the amount of the tax credit?
The incremental cost is the cost difference between the new clean vehicle and a comparable new gas-powered (ICE) vehicle. The Department of Energy conducted a study that found that all EVs would have an incremental cost of at least $7,500 for 2023. The only exception is compact Plug-In Hybrid Electric[…]
Can non-taxable entities like nonprofits, cities, or governments with fleets get the commercial tax credit?
Yes, the Commercial Clean Vehicle Tax Credit, also known as Internal Revenue Code 45W, is refundable (or direct pay) for tax-exempt entities like nonprofits or governments (i.e., cities or counties). This means that tax-exempt entities can claim and receive the tax credit even though they don’t pay any taxes. The[…]
