After several rounds of intense debate, Congress has officially passed its budget reconciliation bill. The bill alters the structure of, and accelerates the timeline to phase out, several crucial EV tax credits that directly support fleet electrification, two of which are addressed below. We urge fleets to take advantage of these programs now before they end.
- The Commercial Clean Vehicle Credit (45W)
- The Alternative Fuel Vehicle Refueling Property Credit (30C)
What's New with 45W and 30C?
The Section 45W Commercial Clean Vehicle Credit offers up to $7,500 for eligible light-duty vehicles and up to $40,000 for eligible medium- and heavy-duty vehicles acquired for commercial use. This key incentive helping public and private fleets bridge the cost gap for zero-emission vehicles is now officially set to expire on September 30, 2025—exactly 180 days from the bill’s signing and more than seven years earlier than originally authorized.
The Section 30C Refueling Infrastructure Credit covers up to 30% of the cost of installing EV charging stations and other alternative refueling infrastructure. This credit is available for both private entities and tax-exempt organizations via elective pay. As of the passage of the budget reconciliation bill, this credit will expire on June 30, 2026, terminating six and a half years earlier than originally authorized.
EC Resources to Help File and Claim Credits
Navigating the IRS process to access these credits can be complex. The Electrification Coalition has developed several tools to simplify the process:
- Annotated Tax Forms: Line-by-line guides to IRS forms, explaining what information you need and where to enter it.
- Elective Pay Blueprint: A comprehensive guide to the elective pay process, designed for public fleets and tax-exempt organizations looking to access credits directly.
Public entities: If you’re looking to leverage 45W before it is sunset, or are planning to install infrastructure with the help of 30C, now is the time to act. Use DriveEVFleets.org—a cooperative purchasing platform by Sourcewell and the EC that helps fleets access EV-related inventory at competitive prices. Through DriveEVFleets.org, you can:
- Identify light, medium and heavy-duty EV models that fit your fleet.
- Identify electric vehicle supply equipment (EVSE) options to charge your fleet.
- Utilize the DRVE tool to conduct a total cost of ownership analysis for present and future fleet vehicles.
Take Action Before the Clock Runs Out
With 45W set to expire in just a few months, the window to lock in credits for vehicle purchases is narrowing. Fleet operators should prioritize:
- Reviewing the EC’s annotated tax tools and Elective Pay Blueprint
- Working with the EC and Sourcewell to secure EV inventory through DriveEVFleets.org
- Planning charging infrastructure deployment to maximize 30C benefits before June 2026
Questions about your eligibility or how to get started?
Contact us at EVFleets@electrificationcoalition.org. We are here to help you make the transition to cleaner, cost-saving fleet operations. Together, we can electrify America’s fleets and make the most of the federal tools available to drive the transition.