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Update: Commercial Clean Vehicle Tax Credit for Electric School Busses

Posted by admin on Sep. 8, 2025  /  Electric Vehicles, Awards & Grants  /  Subscribe 0

From the WRI’s Electric School Bus Initiative:

&br;There’s an important update on the Commercial Clean Vehicle Tax Credit (45W), which offers a credit of up to $40,000 per electric school bus acquired. In recently released FAQs, the IRS provides new information about the term “acquired.”

Here’s what to know:

&br;The budget reconciliation bill signed this summer sped up the expiration of the 45W Commercial Clean Vehicle tax credit. Per the new law, the credit now expires for vehicles “acquired” after September 30, 2025.  &br;Now, the IRS has released new information about the term “acquired.” This update says that a vehicle will now be treated as “acquired” as of the date a written binding contract is entered into and a payment has been made. A payment includes a nominal down payment or a vehicle trade-in.  &br;As you evaluate these new FAQs, it is also very important to note that the “new user registration for the Clean Vehicle Credit program through the Energy Credits Online portal will close on September 30, 2025.” If you have not yet registered as a new user and plan to claim the credit in the future, you must register by September 30th, 2025.

READ THE IRS INFORMATION

&br;For step-by-step instructions on claiming the tax credit, please see WRI's July 24th webinar materials.

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