If you’re considering the purchase of an electric vehicle for your business or personal use, now is the time to act.
The One Big Beautiful Bill Act terminates the following three major electric vehicle tax credits, effective after September 30, 2025:
- Section 45W—Commercial Clean Vehicles Credit. Up to $7,500 for light electric vehicles and up to $40,000 for heavy-duty commercial vehicles. This is the best option for businesses.
- Section 30D—New Clean Vehicle Credit. Up to $7,500 for qualifying new electric vehicles, with requirements for domestic sourcing of battery components and minerals.
- Section 25E—Previously Owned Clean Vehicle Credit. Up to $4,000, or 30 percent of the purchase price, for eligible used electric vehicles.
There is a non-refundable component to this; to get around it, transfer the credit to the Dealer at the point of sale. Combine the expiring EV Credit with 100% Bonus Depreciation which is back, and is permanent. These assets must have been placed into service after January 19, 2025.
Killingsworth Spencer is here to help our clients fully understand their options to save taxes today and in the future. We have CPAs, Enrolled Agents, and Bookkeepers on staff to help our clients with any tax-related issues. For more information or to schedule an appointment, please call us at 770-552-8286. Visit us at www.killingsworthspencerllc.com
- Disclaimer: This post is for general information only and should not be taken as legal or financial advice.