Commercial Clean Vehicle Credit

[3years]

I am a small business owner (S CORP) from South Carolina. I want to have the R1S as a business vehicle. This is the first business vehicle that the S corp will own.

Does anyone have specific knowledge of the inner workings of the Commercial Clean Vehicle Credit allowed by the IRS under §45W (versus §30D) with regard to a Rivian.

From my understanding an individual meeting the income limitations can get a credit for $3750. Is an S Corp business subject to the same tax credit of $3750, or can an S Corp business get the entire $7500 credit? Also, is the S Corp Business business credit subject any income limitations?

If any one has experience in this area , and other areas such as commercial auto insurance and licensing, I would appreciate input and feed back.

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[sheldenwhobrey]

Have you checked if there are any licensing requirements in your state for commercial use?

 

[Donald Stanfield]

This would be a much better question for your accountant.

 

[R1Tom]

This would be a much better question for your accountant.

But.....cross check your accountant/s for accuracy. I have had to move things now and then to higher level with attorney level accounting because the IRS sometimes doesn't even know how to properly handle certain things....seems especially when dealing with environmental issues.

 

[mellissapickron]

When I was looking into getting a business vehicle for my own company, I found the IRS rules a bit tricky too. From what I’ve learned, the Commercial Clean Vehicle Credit under §45W can offer up to $7,500 for businesses, which seems to be different from the $3,750 individuals can get under §30D. As for S Corps, I believe they can qualify for the full $7,500 credit without the same income limitations that apply to individuals, but it’s worth confirming with a tax pro. For insurance, commercial auto rates vary a lot depending on your state and the vehicle’s use. Also, you might find this great site useful if you’re thinking about growing the business.

 

[Donald Stanfield]

But.....cross check your accountant/s for accuracy. I have had to move things now and then to higher level with attorney level accounting because the IRS sometimes doesn't even know how to properly handle certain things....seems especially when dealing with environmental issues.

Yeah, the tax code is a disaster; no one understands all of it.

 

[R1Tom]

Yeah, the tax code is a disaster; no one understands all of it.

Agree....total disaster.

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