Want to learn more about accessing the Inflation Reduction Act’s Section 45W and Section 30C tax credits for electric school buses? Our two-page explainers have the details.
The Inflation Reduction Act established and expanded tax credits for clean energy and climate investments, which are available until December 31, 2032. The most relevant provisions for electric school buses are the Qualified Commercial Clean Vehicle (Section 45W) and Alternative Fuel Refueling Property (Section 30C) tax credits. For the first time, school districts and other tax-exempt entities can access these credits through the elective pay mechanism.
Tax Credit for Qualified Commercial Clean Vehicles (Section 45W)
The Inflation Reduction Act of 2022 created a new tax credit for commercial clean vehicles — including electric school buses — with up to $40,000 available for each vehicle weighing more than 14,000 pounds.
Learn more about the Section 45W tax credit!
Tax Credit for Alternative Fuel Refueling Property (Section 30C)
The Inflation Reduction Act of 2022 allows for a tax credit up to a 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.