Section 30C Electric School Bus Tax Credit Explainer
Want to learn more about accessing the Inflation Reduction Act’s Section 30C tax credit for electric school buses? Our two-page explainer has the details.
NOTE: The budget reconciliation bill signed into law in July of 2025 eliminated the use of the 45W and 30C tax credits after certain dates. The 45W credit, which pertained to vehicles, was eliminated for any vehicle acquired after September 30, 2025. The 30C credit will be eliminated for refueling property (including electric vehicle charging installations) placed in service after June 30, 2026. On August 21, 2025, IRS provided new information about the term "acquired."
The Inflation Reduction Act established and expanded tax credits for clean energy and climate investments, including the Alternative Fuel Refueling Property (Section 30C) tax credit. For the first time, school districts and other tax-exempt entities can access this credit through the elective pay mechanism.
Tax Credit for Alternative Fuel Refueling Property (Section 30C)
The Inflation Reduction Act of 2022 allows for a tax credit up to 30% of project costs, up to $100,000, that can be used for each unit of charging infrastructure in low-income and non-urban areas, if school districts meet prevailing wage and apprenticeship requirements. If districts do not meet prevailing wage and apprenticeship requirements, the credit amount is capped at 6% of project costs. This credit is available for electric vehicle charging installations placed in service before June 30, 2026.