Internal Revenue Code · 26 U.S.C.

§ 45W. Credit for qualified commercial clean vehicles

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 45W

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status: In force
Added: August 16, 2022 by Pub. L. 117–169
Last amended: July 4, 2025 by Pub. L. 119–21
Amendments: 1 dated changes in the source credit
Length: 7 subsections · 682 words · about 3 min to read
Defines: 2 terms
Cross-references: cites 5; cited by 3 Code sections and 7 other regulations

¶(a) In general

For purposes of section 38, the qualified commercial clean vehicle credit for any taxable year is an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each qualified commercial clean vehicle placed in service by the taxpayer during the taxable year.

¶(b) Per vehicle amount

¶(1) In general Subject to paragraph (4), the amount determined under this subsection with respect to any qualified commercial clean vehicle shall be equal to the lesser of—

¶(A) 15 percent of the basis of such vehicle (30 percent in the case of a vehicle not powered by a gasoline or diesel internal combustion engine), or

¶(B) the incremental cost of such vehicle.

¶(2) Incremental cost

For purposes of paragraph (1)(B), the incremental cost of any qualified commercial clean vehicle is an amount equal to the excess of the purchase price for such vehicle over such price of a comparable vehicle.

¶(3) Comparable vehicle

For purposes of this subsection, the term “comparable vehicle” means, with respect to any qualified commercial clean vehicle, any vehicle which is powered solely by a gasoline or diesel internal combustion engine and which is comparable in size and use to such vehicle.

¶(4) Limitation The amount determined under this subsection with respect to any qualified commercial clean vehicle shall not exceed—

¶(A) in the case of a vehicle which has a gross vehicle weight rating of less than 14,000 pounds, $7,500, and

¶(B) in the case of a vehicle not described in subparagraph (A), $40,000.

¶(c) Qualified commercial clean vehicle For purposes of this section, the term “qualified commercial clean vehicle” means any vehicle which—

¶(1) meets the requirements of section 30D(d)(1)(C) and is acquired for use or lease by the taxpayer and not for resale,

¶(2) either—

¶(A) meets the requirements of subparagraph (D) of section 30D(d)(1) and is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails), or

¶(B) is mobile machinery, as defined in section 4053(8) (including vehicles that are not designed to perform a function of transporting a load over the public highways),

¶(3) either—

¶(A) is propelled to a significant extent by an electric motor which draws electricity from a battery which has a capacity of not less than 15 kilowatt hours (or, in the case of a vehicle which has a gross vehicle weight rating of less than 14,000 pounds, 7 kilowatt hours) and is capable of being recharged from an external source of electricity, or

¶(B) is a motor vehicle which satisfies the requirements under subparagraphs (A) and (B) of section 30B(b)(3), and

¶(4) is of a character subject to the allowance for depreciation.

¶(d) Special rules

¶(1) In general

Rules similar to the rules under subsection (f) of section 30D (without regard to paragraph (10) or (11) thereof) shall apply for purposes of this section.

¶(2) Vehicles placed in service by tax-exempt entities

Subsection (c)(4) shall not apply to any vehicle which is not subject to a lease and which is placed in service by a tax-exempt entity described in clause (i), (ii), or (iv) of section 168(h)(2)(A).

¶(3) No double benefit

No credit shall be allowed under this section with respect to any vehicle for which a credit was allowed under section 30D.

¶(e) VIN number requirement

No credit shall be determined under subsection (a) with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year.

¶(f) Regulations and guidance

The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this section, including regulations or other guidance relating to determination of the incremental cost of any qualified commercial clean vehicle.

¶(g) Termination

No credit shall be determined under this section with respect to any vehicle acquired after September 30, 2025.

(Added Pub. L. 117–169, title I, § 13403(a), Aug. 16, 2022, 136 Stat. 1964; Pub. L. 119–21, title VII, § 70503, July 4, 2025, 139 Stat. 251.)

Terms defined here

Where the text says “the term … means”. Select a term to jump to its definition.

comparable vehicle § 45W(b)(3)
qualified commercial clean vehicle § 45W(c)

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 5 other sections

Cited by 3 Code sections

Cited in 7 regulations not issued under it

Amendment history

From the source credit and the official notes, newest first.

July 4, 2025Amended by Pub. L. 119–21Parts changed in 2025: (g)
August 16, 2022Added by Pub. L. 117–169

Where it sits in the Code

Nearby sections

Official notes

Show the Law Revision Counsel's notes (amendments, effective dates)

Editorial Notes

Amendments

2025—Subsec. (g). Pub. L. 119–21 substituted “September 30, 2025” for “December 31, 2032”.

Effective Date

Pub. L. 117–169, title I, § 13403(c), Aug. 16, 2022, 136 Stat. 1966, provided that: “The amendments made by this section [enacting this section and amending sections 38 and 6213 of this title] shall apply to vehicles acquired after December 31, 2022.”