As dozens of new fleet-friendly electric vehicle (EV) models hit the market, the excitement is tangible at fleet and automotive industry events. Lower cost options, like the Chevrolet Equinox EV, are finally available, and a growing mix of medium-duty EV cargo vans and pickups is making electrification viable even for complex fleet operations.
The Inflation Reduction Act (IRA) created groundbreaking clean energy tax incentives—but a new bill threatens to slash them, with a looming deadline of December 31, 2025. That gives you a few short months, not years, to act. While EVs continue to offer long-term total cost of ownership (TCO) advantage over gasoline- and diesel-powered vehicles, the financial upside of securing them with full tax credits today is too significant to delay.
Now is the time to fast-track your electrification plans. Below is a breakdown of how these credits work and how you can still claim them—before they’re gone.*
Federal EV & Charging Tax Credits at a Glance
The Qualified Commercial Clean Vehicle Credit (Section 45W) was designed to jumpstart EV adoption among commercial operators. This credit supports commercial fleet electrification with incentives up to:
- $7,500 per vehicle under 14,000 lbs.
- $40,000 per vehicle over 14,000 lbs.
The actual credit equals the difference between the EV and a comparable gas/diesel vehicle (as determined by the U.S. Department of Energy).
The Alternative Fuel Vehicle Refueling Property Credit (Section 30C) also plays a vital role, offering incentives for organizations building EV charging or alternative refueling infrastructure in low-income or non-urban census tracts. This includes:
- Base Credit: 6% of the property’s basis
- Bonus Credit: Up to 30%, if prevailing wage and apprenticeship (PWA) requirements are met
- Cap: Up to $100,000 per charging port or fuel dispenser
How to Secure Your Tax Credits
The tax credit process can be complex, but a qualified electric fleet management company (eFMC™) makes it easy. If you’re going it alone, follow these key steps to reduce the risk of rejection:
1. Ensure Your FEIN Is Active
Confirm your organization’s Federal Employer Identification Number (FEIN) is active and correct.
2. Register for the Elective Pay Program
- Create an account on the IRS website via ID.me for identity verification.
- Use that account to set up a Clean Energy Account, linking your agency or organization.
- Start here: IRS Clean Energy Registration
3. Register Each Eligible Vehicle or Property
Log each eligible clean energy asset into the Clean Energy Account portal. You’ll need to input vehicle-specific details including VIN, placed-in-service date, manufacturer certification, and MSRP.
4. Provide Supporting Documentation
Upload invoices, proof of payment, titles, and registrations to support each credit claim.
5. File Early
Register assets at least 120 days before filing your tax return to allow time for IRS review and approval.
6. Track Status Manually
There’s no formal IRS approval notice. Regularly log into the Clean Energy Account portal to monitor status updates. You’ll need the registration numbers when filing Form 8936-A and your business tax return.
Credit Maximization Tips for Fleet Managers
Personal Use vs. Business Use:
Even if vehicles are used for less than 50% business purposes, your organization may still qualify for the full credit depending on the vehicle use and documentation. You will need to consider the percentage of vehicle use that is personal versus business-related, as this may have an impact on the amount of credit they can claim. A qualified fleet partner can help determine eligibility.
Example: Agency could still claim the full credit, even though some vehicles were used for less than 50% business purposes.
Fiscal Year vs. Calendar Year:
Choosing your tax year structure strategically can unlock eligibility:
- Calendar year: Returns due May 15 (or Nov 15 with extension)
- Fiscal year: Returns due 5.5 months after year-end (or 11.5 with extension)
- Example: Switching from fiscal to calendar year enabled one agency to capture credits for vehicles that would have been ineligible under fiscal year timing.
IRS Automatic Extensions:
Under Revenue Procedure 2024-39, agencies that haven’t previously filed tax returns are eligible for automatic filing extensions, helping ease the transition into Elective Pay filing.
Helpful IRS Resources
Forms Required
45W = Schedule A (Form 8936) for each vehicle, one Form 8936, one Form 3800, one Form 990-T
30C = Schedule A (Form 8911) for each vehicle, one Form 8911, one Form 3800, one Form 990-T
The Window is Closing—Take Action Now
Don’t wait for the legislation to play out. Whether you’re electrifying a handful of vehicles or transitioning an entire fleet, taking advantage of 45W and 30C now ensures maximum savings before they’re potentially reduced or eliminated.
Inspiration Mobility was created to help public and private organizations accelerate their EV transition. As the first Electric Fleet Management Company (eFMC™), we offer turnkey leasing and EV infrastructure solutions through Inspiration Fleet and Inspiration Energy. We are here to help!
Get Started with a Free EV Opportunity Assessment
*This information is being communicated as general guidance and does not reflect the application of the law to your specific situation. Entities looking to claim the tax credits should always consult with a tax professional, accountant, or attorney on questions regarding their eligibility.