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U.S. IRS Issues Notice on Safe Harbors for Commercial Clean Vehicle Credit

31 January 2025

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Approved Changes

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United States

The U.S. IRS recently issued Notice 2025-9 on the Section 45W Credit for Qualified Commercial Clean Vehicles and Incremental Cost for 2025. This notice provides safe harbors regarding the incremental cost and retail price equivalent (RPE) of certain qualified commercial clean vehicles for purposes of the credit for qualified commercial clean vehicles under section 45W of the Internal Revenue Code (Code). The Section 45W credit, established by the 2022 Inflation Reduction Act, provides a credit of up to USD 7,500 for qualified commercial clean vehicles with gross vehicle weight rating under 14,000 pounds and a credit of up to USD...