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
With the passage of the Inflation Reduction Act, schools could 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 July 2025 budget reconciliation law drastically shortened the timeline for the Sec. 45W tax credit, making it no longer available for vehicles acquired after Sept 30, 2025. See further details in IRS FAQs here.
School districts that have met this deadline and pre-filed by Sept 30, 2025, are entitled to claim the Sec. 45W tax credit. Those in the process of claiming this tax credit may refer to the information and resources below.
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 were “acquired” by Sept 30, 2025 and were/are “placed in service” before or after Sept 30, 2025. Pre-filing in the Energy Credits Online (ECO) portal must have also been completed by Sept 30, 2025.
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 acquired a vehicle and pre-filed by Sept 30, 2025, they are entitled to claim the credit once they physically possess the vehicle (“place into service”).
See further details in IRS FAQs here.
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
45W Explainer from WRI’s Electric School Bus Initiative
Tax Credits for Electric Vehicle Charging Equipment
Schools can still 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 covers information regarding Sec. 45W, Sec. 30C, and the overall process on how to claim these tax credits. Please note this webinar was recorded before Sec. 45W was terminated on Sept 30, 2025 and before new IRS guidance was issued. 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.