For Business Owners

Commercial Clean Vehicle Credit

Does your AGI (Adjusted Gross Income) exceed the threshold for Clean Vehicle Credit (a.k.a. the regular $7,500)? Was the EV you bought too expensive to be eligible? If you use the vehicle for business use, you might still get $7,500! Don't forget about the depreciation deductions you could also enjoy.

Purchased EV for personal use? You may have received IRS Notice CP99D. Click here to learn more

Tesla Cybertruck

Understanding the Commercial Clean Vehicle Credit

The Commercial Clean Vehicle Credit, introduced under the Inflation Reduction Act, allows businesses to claim a tax credit for purchasing qualifying clean vehicles. Vehicles like the Tesla Cybertruck may be eligible if they meet certain criteria.

  • Credit Amount: Lesser of $7,500 or 30% of the vehicle's purchase price for light-duty vehicles. For heavy-duty vehicles, the credit can reach up to $40,000.
  • Business Use: The vehicle must be used for business purposes and not solely for personal use.
  • Eligibility: Ensure the vehicle meets the clean vehicle criteria set by the IRS. Check Vehicle Eligibility Here

Depreciation and Tax Benefits

Businesses can also benefit from depreciation for vehicles used in their operations:

  • Section 179 Deduction: Deduct the entire cost of qualifying equipment, with vehicles subject to additional limitation, in the year placed in service. Small businesses usually qualify.
  • Bonus Depreciation: Allows for 60% first-year deduction, with vehicles subject to additional limitation, mostly for larger businesses.

Tesla Cybertruck: A Case Study

As a fully electric vehicle, the Tesla Cybertruck is likely eligible for the Commercial Clean Vehicle Credit. If you use Cybertruck 100% for business, you may be able to enjoy:

  • Tax Credit: Tesla Cybertruck of any trim (Dual motor or Cyberbeast) sold in 2024 is eligible for $7,500 Commercial Clean Vehicle Credit.
  • Depreciation Benefits: Since Cybertruck's GVWR (gross vehicle weight rating) is over 6,000 lbs, you would enjoy higher depreciation limitation ($30,500 for 2024) with the help of Section 179 or bonus depreciation.

Bought EV for Your Business?

Get 30% Off for your business 2024 tax preparation and accounting services for up to 1 year!

Copper River Tax supports the mission to accelerate the transition to sustainable transport. To show our appreciation, we offer a significant discount to businesses that purchased EV in 2024. Contact us to discuss your business needs! *Subject to terms and conditions.

Disclaimer: The information provided in this article is for general informational purposes only and should not be considered tax, legal, or financial advice. Tax laws and regulations are subject to change, and individual circumstances may vary. Always consult a qualified tax professional for specific guidance regarding your tax situation. Copper River Tax is not responsible for any errors, omissions, or reliance on the information presented.