Ben's answer
Does the Commercial Clean Vehicle Credit (45W) Still Apply in 2026?
No, not for new purchases. The Section 45W commercial clean vehicle credit ended for vehicles acquired after September 30, 2025, under the One, Big, Beautiful Bill Act. A business can still claim it for a vehicle it acquired on or before that date, meaning it signed a binding written contract and made a payment by September 30, 2025, even if it took delivery later.
- $7,500Vehicles under 14,000 pounds gross vehicle weight rating: the credit was capped at $7,500.
- $40,000Vehicles of 14,000 pounds or more, such as school buses and semi-trucks: the cap was $40,000.
- 30%The credit was the smallest of the cap, the incremental cost over a comparable gas or diesel vehicle, and 30% of your basis (15% for plug-in hybrids and other vehicles partly powered by a gas or diesel engine).
- 15%The credit was the smallest of the cap, the incremental cost over a comparable gas or diesel vehicle, and 30% of your basis (15% for plug-in hybrids and other vehicles partly powered by a gas or diesel engine).
The Section 45W qualified commercial clean vehicle credit helped businesses and tax-exempt organizations buy electric and fuel cell vehicles for business use. The Inflation Reduction Act had set it to run through 2032. The One, Big, Beautiful Bill Act (Public Law 119-21, signed July 4, 2025) moved the end date up: no credit is allowed for any vehicle acquired after September 30, 2025.
The IRS says a vehicle counts as acquired on the date you entered into a binding written contract and made a payment. A nominal down payment or a trade-in counts as a payment. If you did both on or before September 30, 2025, you can claim the credit for the tax year you take possession of the vehicle, even if that happened after September 30, 2025.
Last checked: November 11, 2026. This page explains the rules only. It is general information, not legal, tax, or financial advice.
The short version
- Vehicles acquired after September 30, 2025: no 45W credit.
- Vehicles under a binding written contract with a payment made on or before September 30, 2025: the credit can still be claimed in the year you take possession.
- Vehicles under 14,000 pounds gross vehicle weight rating: the credit was capped at $7,500.
- Vehicles of 14,000 pounds or more, such as school buses and semi-trucks: the cap was $40,000.
- The credit was the smallest of the cap, the incremental cost over a comparable gas or diesel vehicle, and 30% of your basis (15% for plug-in hybrids and other vehicles partly powered by a gas or diesel engine).
- For businesses the credit is nonrefundable, but an unused amount can carry over as a general business credit.
- The personal new and used clean vehicle credits (30D and 25E) ended on the same date.
Who qualifies
- Only vehicles acquired on or before September 30, 2025 can still earn the credit.
- For those, the IRS rules say:
- The buyer is a business or tax-exempt organization, and there is no limit on the number of vehicles.
- The vehicle is bought for use or lease in your business, not for resale, and is used mainly in the United States.
- The vehicle is subject to depreciation. Tax-exempt organizations that don't lease the vehicle are the exception.
- It was made by a qualified manufacturer and is either built mainly for public roads or is mobile machinery.
- It is a plug-in electric vehicle with a battery of at least 7 kilowatt hours (under 14,000 pounds) or 15 kilowatt hours (14,000 pounds or more), or a qualifying fuel cell vehicle.
- No credit was already allowed for the same vehicle under 30D or 45W, and you include the vehicle identification number (VIN) on your return.
How to get it
How to claim
- Confirm the dates. Find the signed purchase contract and proof of your payment or trade-in. Both have to be dated on or before September 30, 2025.
- Note the date you took possession of the vehicle. That is when it is placed in service, and it sets the tax year you claim the credit.
- Work out the credit as the smallest of the weight-based cap, the incremental cost, and 30% or 15% of your basis. The IRS publishes safe-harbor incremental cost figures from the Department of Energy for each year.
- Partnerships and S corporations must file Form 8936. Other businesses also figure it on Form 8936 and Schedule A, unless their only share comes from a partnership or S corporation, which they can report directly on Form 3800. Tax-exempt organizations file Form 990-T with Form 3800 attached.
- Include each vehicle's VIN on the return, and talk to your tax preparer about how the credit affects the vehicle's depreciation.
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FAQ
FAQ
Is the commercial clean vehicle credit still available in 2026?
Only for vehicles acquired on or before September 30, 2025. The One, Big, Beautiful Bill Act ended the 45W credit for any vehicle acquired after that date, so a business vehicle you sign for in 2026 gets no 45W credit.
What does acquired mean for the 45W cutoff?
The IRS says a vehicle is acquired on the date a written binding contract is entered into and a payment has been made. A nominal down payment or a vehicle trade-in counts as a payment.
I signed and paid a deposit in September 2025 but took delivery in 2026. Can I claim it?
Yes, if the contract and payment were on or before September 30, 2025 and the vehicle meets the other rules. You claim the credit for the tax year you take possession, which is when the vehicle is placed in service.
How much was the 45W credit?
Up to $7,500 for vehicles under 14,000 pounds gross vehicle weight rating and up to $40,000 for heavier vehicles. The actual credit is the smallest of that cap, the incremental cost, and 30% of basis (15% if the vehicle has a gas or diesel engine).
Which form do I use?
Partnerships and S corporations must file Form 8936. Other businesses also figure it on Form 8936 and Schedule A, unless their only share comes from a partnership or S corporation, which they can report directly on Form 3800. Tax-exempt organizations file Form 990-T with Form 3800 attached.
Did the EV charger credit end too?
The Section 30C alternative fuel vehicle refueling property credit is not allowed for property placed in service after June 30, 2026, according to the IRS.
Is Congress bringing 45W back?
As of November 11, 2026, the law still ends the credit for vehicles acquired after September 30, 2025. Check irs.gov for any changes before you file.