US incentive boost for EV trucks

In News1 MinutesBy NZ Trucking magazineAugust 17, 2022

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.