BOLLINGER MOTORS RECEIVES IRS APPROVAL FOR $40,000 COMMERCIAL EV FEDERAL TAX CREDIT

Rhea-AI Summary

Bollinger Motors, Inc. has received IRS approval as a 'qualified manufacturer' for clean vehicle credits under the Inflation Reduction Act of 2022, enabling the Bollinger B4 chassis cab to qualify for a tax credit of up to $40,000 per vehicle. The company is poised for growth and aims to help electrify America's fleets. The B4, with a GVWR of 15,500 pounds, is expected to qualify for the full eligible tax credit. The company has also announced partnerships with Our Next Energy and Roush Industries, with deliveries of the B4 chassis cab expected to begin in the second half of 2024.

Insights

Financial Analyst

The IRS approval of Bollinger Motors as a 'qualified manufacturer' under the Inflation Reduction Act is a significant catalyst for the company's business model and financial outlook. The ability to offer up to $40,000 in tax credits to purchasers of the Bollinger B4 chassis cab can substantially lower the total cost of ownership for businesses, potentially accelerating adoption and increasing sales volume. This financial incentive aligns with the broader market shift towards sustainability and could enhance Bollinger Motors' competitive position in the electric vehicle space, particularly in the commercial sector. The impact on the company's revenue and profitability will depend on the uptake rate of the B4 chassis cab and the efficiency of the production and delivery processes.

Market Research Analyst

With the commercial EV market still in its nascent stages, Bollinger Motors' positioning as a provider of clean commercial vehicles is strategically timed. The partnerships with Our Next Energy and Roush Industries for battery supply and vehicle assembly, respectively, indicate a strengthening of the company's supply chain, which is crucial for meeting anticipated demand and delivery timelines. Market acceptance of the Bollinger B4 will hinge on its performance and cost-effectiveness relative to traditional gas and diesel trucks. The tax credit could be a decisive factor for businesses considering transitioning to an electric fleet, potentially expanding the market for Bollinger Motors. Monitoring industry adoption rates and customer feedback post-delivery will be essential to gauge the long-term market potential of the B4 chassis cab.

Economist

The Inflation Reduction Act's provision for clean vehicle credits reflects a broader economic policy to incentivize a shift towards greener technology. For Bollinger Motors, the tax credit is not just a sales incentive; it's an economic tool that can potentially shift fleet compositions across numerous industries. The macroeconomic implications include reduced dependency on fossil fuels, potential job creation within the EV manufacturing sector and stimulation of related industries, such as battery production and EV infrastructure. However, the long-term success of this policy and its impact on Bollinger Motors will depend on the continued governmental support for EV incentives, the stability of the regulatory environment and the overall economic climate affecting business investment decisions.

DETROIT, Feb. 6, 2024 /PRNewswire/ -- Bollinger Motors, Inc., an electric vehicle ("EV") manufacturer, today announced it has received IRS approval as a "qualified manufacturer" for clean vehicle credits under the Inflation Reduction Act of 2022 (the "IRA").  This designation enables the Bollinger B4 chassis cab to qualify for the IRA's new credit for qualified commercial clean vehicles, providing eligible purchasers a tax credit of up to $40,000 per vehicle.

"Bollinger Motors is poised for growth and we're ready to help electrify America's fleets," said Robert Bollinger, founder and CEO of Bollinger Motors. "These tax credits are an important incentive for our customers to replace their gas and diesel trucks and lower their total cost of ownership."

Businesses and tax-exempt organizations that buy a qualified commercial clean vehicle may qualify for a clean vehicle tax credit of up to $40,000 under Section 45W of the Internal Revenue Code (IRC).  The credit equals the lesser of:

• 15% of the purchaser's basis in the vehicle (30% if the vehicle is not powered by gas or diesel)
• The incremental cost of the vehicle versus a comparable vehicle with a gas or diesel engine

The Bollinger B4, with a GVWR of 15,500 pounds, is expected to qualify for the full eligible tax credit of $40,000.

Today's award followed a series of announcements in recent months, including partnerships with Our Next Energy in Novi, Mich. to supply batteries, and with Roush Industries in Livonia, Mich. to assemble Bollinger B4 trucks.

The company anticipates deliveries of the Bollinger B4 chassis cab to begin in the second half of 2024.

ABOUT BOLLINGER MOTORS

Founded in 2015 by Robert Bollinger, Bollinger Motors, Inc. is a U.S.-based company headquartered in Oak Park, Mich. Bollinger Motors is developing all-electric commercial chassis cabs Classes 4-6 and all-electric SUV consumer vehicles. In September of 2022, Bollinger Motors became a majority owned company of Mullen Automotive, Inc. (NASDAQ: MULN). Learn more at www.BollingerMotors.com and www.MullenUSA.com.  

FORWARD-LOOKING STATEMENT

Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as "continue," "will," "may," "could," "should," "expect," "expected," "plans," "intend," "anticipate," "believe," "estimate," "predict," "potential" and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Bollinger Motors and are difficult to predict. Examples of such risks and uncertainties include: (a) the continued availability and support for federal commercial vehicle purchasing incentives under the Inflation Reduction Act of 2022; (b) Bollinger Motors' continued status as a qualified manufacturer and ability to meet the requirements under IRC 30D(d)(3); (c) the price of Bollinger's B4 chassis cab and the market price of comparable internal combustion vehicles exceeding an incremental difference in excess of $40,000; (d) Bollinger Motors' continued partnership with Our Next Energy as a battery supplier; and (e) Bollinger Motors' continued partnership with Roush Industries as a contract manufacturer.

Additional examples of such risks and uncertainties include but are not limited to: (i) Bollinger Motors' ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Bollinger Motors' ability to maintain existing, and secure additional, contracts with manufacturers, parts and other service providers relating to its business; (iii) Bollinger Motors' ability to successfully expand in existing markets and enter new markets; (iv) Bollinger Motors' ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unanticipated operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) adverse effects of increased competition on Bollinger Motors' business; (viii) changes in government licensing and regulation that may adversely affect Bollinger Motors' business; (ix) the risk that changes in consumer behavior could adversely affect Bollinger Motors' business; (x) Bollinger Motors' ability to protect its intellectual property; (xi) the vehicles developed will perform as expected and (xii) local, industry and general business and economic conditions. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed by Mullen Automotive, Inc., of which Bollinger Motors is a partially-owned subsidiary, with the Securities and Exchange Commission. Bollinger Motors anticipates that subsequent events and developments may cause its plans, intentions, and expectations to change. Bollinger Motors assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Bollinger Motors' plans and expectations as of any subsequent date. 

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SOURCE Bollinger Motors

FAQ

What is the IRS approval for Bollinger Motors, Inc. under the Inflation Reduction Act of 2022?

Bollinger Motors, Inc. has received IRS approval as a 'qualified manufacturer' for clean vehicle credits under the Inflation Reduction Act of 2022, enabling the Bollinger B4 chassis cab to qualify for a tax credit of up to $40,000 per vehicle.

What is the expected tax credit for the Bollinger B4 chassis cab?

The Bollinger B4, with a GVWR of 15,500 pounds, is expected to qualify for the full eligible tax credit of $40,000.

When are deliveries of the Bollinger B4 chassis cab expected to begin?

The company anticipates deliveries of the Bollinger B4 chassis cab to begin in the second half of 2024.

What partnerships has Bollinger Motors, Inc. announced recently?

Bollinger Motors, Inc. has announced partnerships with Our Next Energy in Novi, Mich. to supply batteries, and with Roush Industries in Livonia, Mich. to assemble Bollinger B4 trucks.