Businesses can claim tax credits for electric vehicles (EVs) under the Commercial Clean Vehicle Credit program, but there are specific rules and limitations regarding the amount and number of credits:
- No limit on the number of credits claimed: A business can claim the credit for multiple qualifying vehicles without a numeric limit on the number of credits it can take. This means businesses can claim credits for each eligible commercial EV they purchase.
- Credit amount limits per vehicle:
- For vehicles weighing less than 14,000 pounds (typically passenger-sized vehicles like cars, vans, and trucks), the maximum credit is $7,500.
- For heavier vehicles (14,000 pounds and above), the maximum credit can be up to $40,000.
- Credit calculation:
- The credit equals the lesser of 15% of the purchase price for plug-in hybrids or 30% of the purchase price for full battery EVs and fuel cell EVs.
- It may also be limited by the incremental cost compared to an equivalent internal combustion engine vehicle.
- Nonrefundable credit: The credit is nonrefundable for businesses, which means a business cannot receive a refund if the credit exceeds its tax liability. However, unused credits may be carried over as a general business credit in some cases.
- Restrictions on combining credits: Businesses cannot combine the Commercial Clean Vehicle Credit with the Clean Vehicle Tax Credit on the same vehicle.
In summary, while there is no limit on how many electric vehicle tax credits a business can claim overall, each vehicle has a capped credit amount based on weight and purchase price, and businesses cannot claim multiple credits for the same vehicle or combine certain credits.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-limitations-on-the-number-of-tax-credits-a-business-can-claim-for-electric-vehicles/
