Envirotech Vehicles Announces Eligibility for Inflation Reduction Act's Commercial Clean Vehicle Credit

Rhea-AI Summary

Envirotech Vehicles, Inc. (NASDAQ:EVTV) has announced that customers purchasing its commercial electric vehicles with a gross vehicle weight rating over 14,000 pounds can now receive a tax credit of $40,000 per vehicle under the Inflation Reduction Act. This includes medium-duty logistics vans and urban trucks, with upcoming models like school buses also expected to qualify. The IRA aims to support the transition to zero-emission vehicles, with additional funding for infrastructure and worker training. Phillip Oldridge, CEO, emphasized that this move enhances vehicle affordability and positions EVTV well for future growth.

Positive

• Tax credit of $40,000 available for EVTV vehicles over 14,000 pounds, enhancing customer affordability.
• Future vehicles, including school buses, expected to qualify for tax credits, expanding market opportunities.
• IRA funding supports zero-emission vehicle infrastructure, aiding EVTV's growth potential.

Negative

• None.

OSCEOLA, AR / ACCESSWIRE / March 21, 2023 / Envirotech Vehicles, Inc. (NASDAQ:EVTV), a provider of new zero-emission, purpose-built electric vehicles ("EVTV"), announced today that customers that purchase EVTV commercial electric vehicles with a gross vehicle weight rating (GVWR) of over 14,000 pounds are now eligible to receive a tax credit of $40,000 per vehicle under the Inflation Reduction Act (IRA) commercial clean vehicle credit. Vehicles that qualify for this credit in EVTV's portfolio today include the company's medium-duty logistics vans and urban trucks, with future vehicles such as the company's school bus offering expected to qualify as well.

Phillip Oldridge, Chief Executive Officer of Envirotech Vehicles, commented, "Securing vehicle tax credit eligibility for customers purchasing EVTV vehicles under the IRA's commercial clean vehicle credit is another key step forward in improving vehicle affordability for fleet owners looking to participate in the green transition of the U.S. medium and heavy-duty commercial fleet. When combined with other available local, state, and federal grants and incentive programs that our team is well positioned to leverage, the cost of owning one of our vehicles can become even more attractive, all of which positions us well as we continue to scale up our business."

The IRA commercial clean vehicle tax credit, which is under Internal Revenue Code (IRC) 45W, can be combined with most state and federal government funding, thus reducing the upfront cost of purchasing a commercial electric vehicle even further. Vehicles with a gross vehicle weight rating (GVWR) of under 14,000 pounds, such as the company's cutaway van, qualify for a $7,500 credit. The commercial clean vehicle credit is just a part of the energy transition-focused IRA law. The IRA is also investing $1 billion to replace dirty heavy-duty vehicles with clean, zero-emission vehicles, support zero-emission vehicle infrastructure, and to train and develop workers through grants or rebates through the Clean Heavy-Duty Vehicle program. Funds are to be distributed by 2031, with $400 million set aside for communities in nonattainment areas, which are areas considered to have air quality worse than the National Ambient Air Quality Standards.

About Envirotech Vehicles
Envirotech Vehicles, Inc. is a provider of purpose-built, zero-emission electric vehicles focused on reducing the total cost of vehicle ownership and helping fleet operators unlock the benefits of green technology. We serve commercial and last-mile fleets, school districts, public and private transportation service companies, and academic institutions to meet the increasing demand for heavy-duty electric vehicles. Our vehicles address the challenges of traditional fuel-price cost instability and local, state and federal environmental regulatory compliance. For more information, visit www.evtvusa.com.

Cautionary Statement Regarding Forward-Looking Statements
Statements made in this press release that relate to future plans, events, financial results, prospects or performance are forward-looking statements. While they are based on the current expectations and beliefs of management, such forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from the expectations expressed in this press release, including the risks and uncertainties disclosed in reports filed by Envirotech Vehicles, Inc. with the Securities and Exchange Commission, all of which are available online at www.sec.gov. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expected," "believes," "strategy," "opportunity," "anticipated," "outlook," "designed," and similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as required by law, Envirotech Vehicles undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.

Contact Information
Investor Relations
CR, Inc.
Telephone: (646) 200-8873
Email: envirotech@icrinc.com

Sue Emry, Executive Vice President
Telephone: (870) 970-3355
Email: sue.e@evtvusa.com

Victoria Pagonis, Grant Writer and Project Manager
Telephone: (201) 317-0710
Email: vic.p@evtvusa.com

Arkansas Press Inquiries
Kristen Nicholson, APR
Telephone: (501) 350-3658
Email: knicholson@mhpteamsi.com

SOURCE: Envirotech Vehicles, Inc

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FAQ

What is the tax credit amount for EVTV vehicles under the Inflation Reduction Act?

Customers can receive a tax credit of $40,000 per vehicle for EVTV commercial electric vehicles with a gross vehicle weight rating over 14,000 pounds.

Which EVTV vehicles qualify for the commercial clean vehicle credit?

Currently, EVTV's medium-duty logistics vans and urban trucks qualify, with future models like school buses expected to be eligible.

What is the significance of the Inflation Reduction Act for Envirotech Vehicles?

The Inflation Reduction Act provides substantial tax credits and funding, which enhances affordability for customers and supports EVTV's market growth.

How does the Inflation Reduction Act support the transition to electric vehicles?

The IRA aims to phase out dirty heavy-duty vehicles, invests in clean vehicle infrastructure, and offers financial incentives to encourage adoption.