Electricity sales can receive credits of up to $40,000 under the conciliation bill passed through Congress
As Congress moves to extend and expand the federal EV tax credit for passenger cars, it is also considering an invoice that would add a first-of-its-kind electric commercial vehicle tax credit.
As described in blog post from the Union of Concerned Scientists (UCS), the current version of the bill includes a tax credit of up to $7,500 for vehicles with a gross vehicle weight (GVWR) of less than 14,000 pounds, including including pickups and vans, and up to $40,000 for larger vehicles like pickups and garbage trucks.
The bill also requires a minimum battery pack size of 7 kWh for GVWR vehicles under 14,000 pounds and 15 kWh for larger vehicles. As with the current passenger car tax credit, cars with larger packages will likely receive a larger credit.
Freightliner eCascadia
In addition to the incentives, which will be in effect through 2032, the bill also includes $1 billion to fund electric heavy commercial vehicles (including school buses) and infrastructure, and $3 billion for the electrification of the U.S. Postal Service’s new delivery fleet and related toll infrastructure.
Commercial truck incentives are part of the same package of legislation and potentially bill re-increase the EV . tax credit to raise the 200,000-vehicle cap, put a $7,500 point-of-sale credit, and an additional $4,000 on used electric cars. And it can have a relatively large impact on emissions.
According to UCS, despite making up only 10% of vehicle traffic on US roads, heavy commercial vehicles are responsible for 28% of greenhouse gas emissions, 45% of nitrous oxide emissions and 57 % of fine particulate emissions. California has released a mandate for electric trucks, aiming to achieve 100% EV sales by 2045.
Volta California Trucks
Several manufacturers have begun to market all-electric commercial trucks. Megawatt charger for the newly formalized large truck and the models using it will likely be available in the next year or two. Research to show that incentives can significantly accelerate that market.
Real-world testing verified the cost savings of electric trucks — and helped realize that electric trucks reduce driver fatigue. That’s what Daimler found after a fleet of electric trucks tested one million miles with actual customers. UCS estimates operating costs for electric trucks could be 14% to 52% lower and repair costs 40% lower than current diesel trucks.
Incentivized or not, a broader coalition of countries is preparing to mandate more zero-emissions commercial vehicles. 17 states, the District of Columbia and the Canadian province of Quebec recently have plans electrify 30% of trucks and buses by 2030—Although in part, the regulatory challenge is coming from within the industry that is simultaneously negotiating electric vehicles and seeking credit.
