The Treasury Department has announced the rules an procedures for school districts and municipal governments to receive tax credits from the federal government for any electric vehicle delivered starting in tax year 2023. This allows governmental and nonprofit organizations to receive the same benefits given to taxpaying companies for investing in EVs.
This program was authorized under the Biden Administration’s Inflation Reduction Act and allows schools and local governments a tax credit up to $40,000 depending on the vehicle price and the amount of non-subsidized expenses paid by the district or agency.
Agencies seeking these tax credits must preregister with the IRS. More information about this program is available here: shorturl.at/BFKR2 Print readers can search for IRS Elective Pay and Transferability Rules in their web browsers.