Electric Transportation: Take Advantage Now
Claim Your Tax Credits for Electric Vehicles (EVs) and EV Charging Equipment
The changes to energy tax credits introduced through the July 2025 budget reconciliation law include drastic changes to the deadlines to qualify for tax credits for electric vehicles and EV charging infrastructure.
Tax Credits for Electric School Buses and other Clean Commercial Vehicles
Schools can claim energy tax credits (Sec. 45W) through Elective Pay for electric school buses, white fleet, and certain electric landscaping equipment purchased through eligible manufacturers.
The tax credit is based on 30% of cost or incremental cost, whichever is lesser, up to $40,000.
Available for electric school buses and other clean commercial vehicles that are “acquired” (by Sept 30, 2025) and “placed in service” (before or after September 30, 2025). See further details in IRS FAQs here.
A vehicle is considered “acquired” as of the date a written binding contract is entered into and a payment has been made - even if the school does not physically possess the vehicle yet.
If a school acquires a vehicle by Sept 30, 2025, they are entitled to claim the credit once they physically possess the vehicle (“place into service”).
Note: School districts seeking the Sec. 45W tax credit must pre-file in the Energy Credits Online (ECO) portal by September 30, 2025.
Planning to claim this credit? Here are three steps you should take:
Finalize your contract and payment before September 30, 2025.
Register as a new user in the Energy Credits Online portal by September 30, 2025.
Pre-file as soon as your electric vehicle is placed into service – and ideally 120 days prior to your tax return filing deadline.
Additional Information:
Alliance for Electric School Buses: Claim Your $40,000 Tax Credit For Your Electric School Bus
Alliance for Electric School Buses: Fact Sheet - New Tax Credits & Elective Payment for Clean School Buses
IRS: FAQs for for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D
45W Explainer from WRI’s Electric School Bus Initiative
Tax Credits for Electric Vehicle Charging Equipment
Schools can also claim energy tax credits (Sec. 30C) for electric vehicle (EV) charging equipment installed at qualifying locations.
The tax credit amount is 6-30% of EV charging equipment cost, up to $100,000 per charger.
The charging equipment must be installed in a low-income or non-urban census tract.
Check your eligibility: U.S. Department of Energy 30C Tax Credit Eligibility Locator
Available for electric vehicle charging equipment placed into service at eligible locations by June 30, 2026.
Additional Information:
Alliance for Electric School Buses: Fact Sheet - New Tax Credits & Elective Payment for Clean School Buses
IRS: FAQs for for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D
30C Explainer from WRI’s Electric School Bus Initiative
Webinar: How to Claim the $40,000 Tax Credit for your Electric School Bus
This webinar was recorded before new IRS guidance was issued regarding Sec. 45W.
For the latest information, see here.
Webinar Recording
Webinar Slides
Learn more at: WRI's Electric School Bus Initiative and the Alliance for Electric School Buses
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Questions? Reach out to us at: info@undauntedk12.org.
The information on this page represents our best understanding of certain tax provisions for general informational purposes only and is not itself tax guidance. Please consult qualified tax professionals about your specific circumstances and refer to guidance issued by the IRS for detailed information on the rules associated with energy tax credits, elective pay, and other relevant tax provisions.