--- kind: "section" citation: "26 U.S.C. § 45W" title: "26" title_heading: "Internal Revenue Code" number: "45W" heading: "Credit for qualified commercial clean vehicles" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/26/45W" units: - "Subtitle A — Income Taxes" - "Chapter 1 — Normal Taxes and Surtaxes" - "Subchapter A — Determination of Tax Liability" - "Part IV — Credits Against Tax" - "Subpart D — Business Related Credits" --- # §45W. Credit for qualified commercial clean vehicles - (a) **In general—** For purposes of [section 38](/usc/26/38.md), 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)](#b) with respect to each qualified commercial clean vehicle placed in service by the [taxpayer](/usc/26/1313.md?p=b) during the taxable year. - (b) **Per vehicle amount—** - (1) **In general—** Subject to [paragraph (4)](#b-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)](#b-1-B), the incremental cost of any qualified commercial clean vehicle is an amount equal to the excess of the [purchase](/usc/26/1361.md?p=e-1-C) 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)](#b-4-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)](/usc/26/30D.md?p=d-1-C) and is acquired for use or lease by the [taxpayer](/usc/26/1313.md?p=b) and not for resale, - (2) either— - (A) meets the requirements of [subparagraph (D)](/usc/26/30D.md?p=d-1-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)](/usc/26/4053.md?p=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)](/usc/26/30B.md?p=b-3-A) and [(B)](/usc/26/30B.md?p=b-3-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)](/usc/26/30D.md?p=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)](#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](/usc/26/150.md?p=a-6) entity described in clause [(i)](/usc/26/168.md?p=h-2-A-i), [(ii)](/usc/26/168.md?p=h-2-A-ii), or [(iv)](/usc/26/168.md?p=h-2-A-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)](#a) with respect to any vehicle unless the [taxpayer](/usc/26/1313.md?p=b) 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](/usc/26/1313.md?p=a) 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. ## Source credit (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.) ## Notes ### Editorial Notes ### Amendments 2025—Subsec. (g). Pub. L. 119–21 substituted “September 30, 2025” for “December 31, 2032”. ### Statutory Notes and Related Subsidiaries ### 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.”