Update: 8/22/25

Since we recorded this webinar, the IRS provided new information in new FAQs (Fact Sheet 2025-05) about the term “acquired,” noting that a vehicle will now be treated as “acquired” as of the date a written binding contract is entered into and a payment has been made. A payment includes a nominal downpayment or a vehicle trade-in. 

Importantly, the FAQs also indicate that, “acquisition alone does not immediately entitle a taxpayer to a credit.” The IRS continues by noting that, “if a taxpayer acquires a vehicle by having a written binding contract in place and a payment made on or before September 30, 2025, then the taxpayer will be entitled to claim the credit when they place the vehicle in service (namely, when they take possession of the vehicle), even if the vehicle is placed in service after September 30, 2025. Taxpayers should receive a time of sale report from the dealer at the time they take possession or within three days of taking possession of the vehicle.”

This means that school bus operators do not need to take possession of their vehicles prior to September 30th, 2025 to be explicitly eligible for the credit.

Also addressed in the FAQs, it is very important to note that the “new user registration for the Clean Vehicle Credit program through the Energy Credits Online portal will close on September 30, 2025.” If you have not yet registered as a new user, and plan to claim the credit in the future, you must register by September 30th, 2025.

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Congress has drastically accelerated the expiration of the 45W tax credit for Qualified Commercial Clean Vehicles. Eligible entities now have until September 30, 2025 to acquire their vehicles to be able to claim the tax credit of up to $40,000.  

Join this webinar to learn what the 45W tax credit is, who is eligible to claim it, and how elective pay can help you receive the credit as a check. Superintendent Tim Farquer, who successfully applied and whose district received its check, will demonstrate how to file for the tax credit. Get answers to your questions and support for the next steps.

This webinar is hosted by the Alliance for Electric School Buses and WRI's Electric School Bus Initiative. Please share it with other school districts who will benefit from this information. Reach out to [email protected] if there is anything that would make our webinars more accessible for you.