Vending

Senate OKs Inflation Reduction Act: EV vehicle tax credit, climate incentives, taxes

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August 8, 2022

On Sunday, the U.S. Senate passed the Inflation Reduction Act, a nearly $400 billion plan to address climate change and health care costs, and raise taxes on large corporations, according to CBS News.

The measure includes the following provisions that potentially impact the convenience services industry, according to the National Automatic Merchandising Association weekly update:

• The bill creates an up to 30% credit not to exceed $40,000 for the cost of commercial electric vehicles and fuel cell vehicles through 2032. The credit is capped at $7,500 for vehicles with a gross vehicle weight less than 14,000 pounds, and $40,000 for all other vehicles.
• The bill includes funds to establish several grant programs at the Environmental Protection Agency and other agencies to reduce emissions across a range of sectors. NAMA views this as an opportunity to pursue grants or tax credits for operators to upgrade refrigerated vending machines to new R-290 machines.
• The bill establishes a 15% minimum tax on large corporations. The tax would apply to companies that average $1 billion or more in adjusted income over the past three years. The tax is intended as a cost offset for the package to drive down the federal deficit.