The United States Congress has passed climate legislation with tax incentives aimed at speeding adoption of medium and heavy-duty trucks, particularly those serving the last-mile delivery sector.

The U.S. House  approved the Democrat-backed Inflation Reduction Act of 2022 (IRA), a US$745 billion package that contains grants and incentives to reduce the cost of clean energy and healthcare, along with tax reforms.

In addition to providing grants for zero-emission port equipment, medium and heavy-duty trucks — including those used for long-haul freight — can take advantage of tax credits in the bill for both electric vehicle purchases and for purchasing and installing battery-charging infrastructure.

The EV purchase tax credit covers either the vehicle’s incremental cost — the price difference between a diesel truck and the electric counterpart — or 30% of the truck’s purchase price, whichever is less. The incentive is capped at $40,000 per vehicle purchase. The infrastructure credit provides up to $100,000 per charger.