For Businesses and tax-exempt organizations looking to purchase new commercial clean vehicles in 2023, you may qualify for the New Commercial Clean Vehicle Credit

• The credit is offered to Businesses and Tax-exempt organizations
  • There is no limit to the number of credits used by the business
  • The credit is non-refundable
  • The credit can be carried over as a general business credit
  • The amount of the credit allowed will reduce the vehicle’s depreciable basis
• The credit is limited to the lesser of
  • 15% of the Vehicles Basis; or
  • 30% of the Vehicles Basis if the vehicle does not run using Diesel or Gasoline; or
  • The Incremental cost of the vehicle
• The Gross Vehicle Weight Rating (GVWR) is under 14,000 lbs., the credit cap is $7,500
• For all other vehicles, the credit cap is $40,000

What Vehicles Qualify

• Vehicle(s) made by a qualified manufacturer
  • To see a list of qualified Manufacturers for vehicles after January 1, 2023 please go to: Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2023 or After | Internal Revenue Service (irs.gov)
• Vehicle(s) CANNOT be purchased for resale
• Vehicle(s) MUST be used in Business
• Vehicle(s) CANNOT have previously been allowed the clean vehicle credit
• Vehicle(s) MUST be manufactured for use on public roads as a Motor Vehicle or considered Mobile Machinery

• A plug-in electric vehicle that draws significant propulsion from an electric motor with a battery capacity of at least:
  • 7 kilowatt hours if the GVWR is under 14,000 pounds
  • 15 kilowatt hours if the GVWR is 14,000 pounds or more
• A fuel cell motor vehicle

If you have any question on this subject matter or others, please contact your Polk and Associates relationship manager.

Polk & Associates

Large enough to serve a diverse clientele, yet small enough to maintain a hands-on approach, we are committed to maintaining the highest accounting and ethical standards with continuous education, extensive research resources, and excellent quality control.

Polk and Associates is a member of the Michigan Association of Certified Public Accountants, and the American Institute of Certified Public Accountants. The firm participates in the AICPA Peer Review Program, and has always received the highest level of award for its audit practice and quality control.