The new law (IRA) will have important impact on the country’s push to electrify transportation — including the heavy-duty vehicles that are responsible for an outsized portion of the sector’s carbon emissions, as well as the charging infrastructure needed to keep EVs running.
One such provision promises to cut a fair chunk of the upfront cost of new electric vans, trucks and buses: a tax credit of 30 percent on the cost of commercial EVs, up to a maximum of $7,500 for light-duty vehicles and $40,000 for medium- and heavy-duty vehicles. EV charging systems would also be eligible for a 30 percent tax credit on up to the first $100,000 in costs per charger, or $30,000 at its top limit — a significant portion of their costs.
The law also provides $1 billion in grants for clean heavy-duty vehicles like school buses and garbage trucks, as well as other grants, such as $3 billion to reduce air pollution at ports, that could help boost heavy-duty EV adoption. Companies that build medium- and heavy-duty EVs can also seek access to billions of dollars in grants, loans and tax credits to support U.S. manufacturing and take advantage of provisions that privilege domestically produced vehicles and chargers.
Fast growth is needed to cut trucking emissions at a pace commensurate with fighting climate change. Medium and heavy duty trucks make up less than 5% of vehicles on U.S. roads but account for a 25% of total transportation greenhouse gas emissions