IRS Releases Safe Harbor Guidance For Commercial Clean Vehicles

The IRS released safe harbor guidance relating to incremental cost and retail price equivalent for qualified commercial clean vehicles.

The guidance said the taxpayers can calculate incremental cost based on the method published by the Department of Energy in January 2025, which included a table for the appropriate class of clean vehicle placed on or after Jan. 1, 2025.

Additionally, taxpayers can use the retail price equivalent method provided by the Energy Department to determine the incremental cost.

• The guidance is provided for clean vehicles that qualified under section 45W of IRS code, part of the 2022 tax-and-climate law. ...