The Inflation Reduction Act of 2022 will reduce our country’s carbon emissions by roughly 40% by 2030 and minimize shocks caused by volatile fuel prices by providing significant incentives for companies to invest in clean assets with predictable operating costs.
The bill will provide more than $400 billion to improve energy security and fight climate change. Most importantly, it provides incentives for individuals and corporate entities to accelerate a transition toward cleaner energy sources.
[Related: Inflation Reduction Act likely to influence trucking more than inflation]
The bill is complex, but tax credits can be leveraged by trucking companies to improve the ROI of fleet upgrades, expansions and conversions to clean fuel, and can result in significant savings for 3PLs, manufacturers consumer-facing brands, retailers and everyday Americans.
The details of the tax credit are found in Section 13403 (Commercial Clean Vehicles) of HR 5376, but the tax credit that your company can take advantage of is based on several factors, and is the lesser of the credit when computed in a few ways:
