Federal

The U.S. Environmental Protection Agency’s Diesel Emissions Reduction Act (DERA) offers funding to upgrade or replace older diesel engines with newer, cleaner technologies, including EVs.

The U.S. Environmental Protection Agency’s Targeted Airshed Grant Program provides vehicle incentive funding to reduce air pollution in the nation’s areas with the highest levels of ozone and PM2.5 ambient air concentrations.

The U.S. Treasury “45W” Commercial Vehicle Tax Credit enables businesses and tax-exempt organizations that buy a qualified commercial clean vehicle to qualify for a clean vehicle tax credit of up to $40,000 under Internal Revenue Code (IRC) 45W. The credit equals the lesser of:

• 15% of your basis in the vehicle (30% if the vehicle is not powered by gas or diesel)

• The incremental cost of the vehicle

The maximum credit is $7,500 for qualified vehicles with gross vehicle weight ratings (GVWRs) of under 14,000 pounds and $40,000 for all other vehicles.

State of California

The California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) provides vouchers for fleets to purchase EVs and other clean vehicles.

Utility Programs

PG&E offers EV fleet infrastructure incentives for fleets to switch to electric or hybrid vehicles:

• Pacific Gas & Electric – EV Fleet Program

For a more complete list of laws and incentives, consult the Department of Energy’s Alternative fuels Data Center here.