Business EV Tax Deduction Calculator
The commercial EV credit is gone — but Section 179 and 100% bonus depreciation can still write off a heavy business EV almost entirely in year one.
✓ Last verified: August 19, 2026 — IRC §179, §168(k), One Big Beautiful Bill Act
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What Actually Changed for Business EVs
The Commercial Clean Vehicle Credit (Section 45W) — which gave businesses up to $7,500 for light vehicles and as much as $40,000 for heavier trucks and vans — expired for vehicles acquired after September 30, 2025, the same day the personal new and used EV credits ended. There's no direct federal EV purchase credit left for businesses.
What's left is Section 179 expensing plus 100% bonus depreciation (restored by the One Big Beautiful Bill Act for property placed in service after January 19, 2025) — a general business vehicle deduction, not EV-specific, but one that can be worth more than 45W ever was for a heavy vehicle.
| Category | 2026 Limit | Examples |
|---|---|---|
| Under 6,000 lbs GVWR | $20,300 first year (capped) | Most sedans, compact SUVs |
| 6,001–14,000 lbs, SUV | $32,000 §179, then unlimited bonus depreciation | Many electric trucks & large SUVs |
| Cargo van / 6ft+ bed / 14,000+ lbs | Full cost, up to $2,560,000 overall §179 limit | Work vans, large commercial trucks |
Sources: IRC §179(b)(5), §168(k), IRS Rev. Proc. 2025-32 and 2026-15, OBBBA (P.L. 119-21) §70301.
Also Check: Business EV Charger Credit
The commercial version of the EV charger credit (Section 30C) also expired — for property placed in service after June 30, 2026, businesses could get up to $100,000 per charging port. If you installed chargers before that date, use our Charger Credit Calculator to check what you can still claim.