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Commercial EV Tax Credits, Incentives, and Regulations

The push towards electrification and cleaner transportation is driven by key regulations and incentives aimed at reducing emissions from medium- and heavy-duty vehicles. These measures advance the adoption of electric vehicles and underscore a commitment to improving air quality and combating climate change. By setting stringent standards and providing clear frameworks, these regulations and incentives are crucial in shaping a sustainable future for transportation, fostering innovation and growth in the electric vehicle sector. Explore the various measures that are paving the way for a cleaner, greener transportation landscape.

Commercial Electric Truck Incentives

Save Up to $138,000 on Your Next Class 5 Electric Truck
California – HVIP
Save Up to $125,000 on Your Next Class 5 Electric Truck
New York – NYTVIP
Save Up to $51,000 on Your Next Class 5 Electric Truck
Massachusetts – MOR-EV
Save up to $127,500 on Your Next Class 5 Electric Truck
Texas – TxVEMP
Federal Tax Credits – IRA Commercial Clean Vehicle credit
  • 30% of incremental cost, up to a maximum credit of $40,000 per vehicle (under § 45W of the Code).
  • For qualified commercial clean vehicles delivered after December 31, 2022.
  • Further tax guidance expected from the Department of Treasury.
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California – HVIP
  • Base Incentive of $60,000 for Class 5 vehicles.
  • Bonus for fleets < 20 vehicles and less than $15M in annual revenue as well as fleets domiciled in Disadvantaged Communities.
  • No scrap vehicle required.
  • Can be stacked with Commercial Clean Vehicle Tax Credit (IRA).
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Massachusetts – MOR-EV Trucks Program
  • Base incentive amount of $45,000 for Class 5 vehicles.
  • Rebate amounts decline by 15% after funding in previous block is depleted.
  • No scrap vehicle required.
  • Can be stacked with Commercial Clean Vehicle Tax Credit (IRA).
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New York – NYTVIP
  • 95% of the incremental cost, up to a maximum of $125,000 for Class 5 vehicles.
  • Requires scrap of MY 1992-2009 diesel vehicles.
  • Can be stacked with Commercial Clean Vehicle Tax Credit (IRA).
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Pennsylvania – AFIG
  • Incremental cost up to $40,000 for Class 5 Vehicles.
  • No scrap vehicle required.
  • Applications will be accepted until December 20, 2024.
  • Can be stacked with Commercial Clean Vehicle Tax Credit (IRA).
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Texas – Tx VEMP
  • Incremental cost up to 100% for government entities.
  • Incremental cost up to 75% for non-government entities.
  • Requires scrap of MY 1992-2009 diesel vehicles.
  • Applications will be accepted until August 31, 2025.
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Commercial Truck Emission Regulations

Diesel Emissions Reduction Act (DERA)

The Diesel Emissions Reduction Act (DERA) is a federal initiative managed by the Environmental Protection Agency (EPA) focused on reducing harmful diesel emissions across the United States. DERA provides grants and rebates to support the replacement, retrofitting, or repowering of older diesel engines with newer, cleaner technologies in vehicles such as trucks, buses, and marine vessels. This program targets state, local, and tribal agencies, as well as non-profits and private companies, particularly in areas with high pollution levels. For more detailed information, visit the EPA's DERA Program page.

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EPA Clean Trucks Plan

The EPA Clean Trucks Plan is a set of federal regulations aimed at significantly reducing emissions from medium- and heavy-duty vehicles. The plan includes multiple phases, with the Phase 3 Greenhouse Gas (GHG) Emissions Standards being a key component. These standards, effective for model years 2027-2032, mandate a 44% reduction in GHG emissions for these vehicles. The Clean Trucks Plan is designed to promote the adoption of advanced technologies and alternative fuels, ultimately ensuring cleaner air, and fostering a sustainable market for zero-emission vehicles. For more information visit the EPA website.

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Advanced Clean Trucks (ACT) Regulation

The Advanced Clean Trucks (ACT) Regulation, implemented by the California Air Resources Board (CARB), establishes a clear trajectory towards zero-emission vehicle (ZEV) sales. Starting in 2024, these regulations mandate that 9% of all new vehicle sales in participating states must be electric, with this requirement increasing incrementally to 75% by 2035. These mandates have already been adopted in states like California, Oregon, Washington, Colorado, New York, New Jersey, Massachusetts, and Vermont, with additional states expected to implement similar requirements. The ACT Regulation promotes the development and deployment of electric trucks, fostering a sustainable market for zero-emission vehicles and significantly reducing greenhouse gas (GHG) and nitrogen oxides (NOx) emissions. For more details, visit the CARB ACT Regulation page.

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