Treasury Department, IRS Release Section 45W Clean Commercial Vehicle Guidance

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.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.