Mullen Announces Bollinger Motors Receives IRS Approval for $40,000 Commercial EV Tax Credit
- None.
- None.
Insights
The IRS approval of Bollinger Motors as a 'qualified manufacturer' under the Inflation Reduction Act represents a significant milestone for Mullen Automotive and the broader electric vehicle (EV) market. From an industry perspective, this approval is anticipated to catalyze the adoption of EVs in commercial fleets, given the substantial tax incentives now available to businesses. The Bollinger B4 chassis cab's eligibility for the maximum $40,000 tax credit underlines its potential appeal to commercial operators looking to reduce their total cost of ownership (TCO) and transition to more sustainable vehicle options.
For stakeholders, the short-term implications include an enhanced competitive edge for Mullen Automotive in the EV sector, likely translating into increased pre-orders and investor interest. Long-term, the tax credit could accelerate the company's market penetration and contribute to economies of scale. However, the actual impact will depend on production capabilities, the reliability of the B4 chassis cab and the company's ability to maintain a cost structure that remains attractive after tax credits are factored in.
The clean vehicle tax credit outlined in Section 45W of the Internal Revenue Code is a strategic component of the Inflation Reduction Act aimed at reducing greenhouse gas emissions by promoting electric vehicles. The credit amount is significant, covering up to 30% of the cost for vehicles not powered by gas or diesel, which can dramatically lower the effective price for businesses and tax-exempt organizations. The policy's design targets the incremental cost barrier that often hinders the transition from traditional to electric commercial vehicles.
Businesses considering the Bollinger B4 will need to evaluate how the tax credit aligns with their fiscal strategies and environmental goals. The credit could alter fleet renewal cycles and investment decisions, potentially leading to a more rapid turnover of older, less efficient vehicles. It's essential for these entities to understand the tax implications fully and integrate them into their financial planning to maximize the benefits.
The environmental implications of the IRS's approval of Bollinger Motors are noteworthy. The shift towards electric vehicles in commercial use is a critical step in reducing carbon emissions, particularly in the transportation sector, which is a significant contributor to environmental pollution. The Bollinger B4 chassis cab's Gross Vehicle Weight Rating (GVWR) of 15,500 pounds places it in a category of heavy vehicles that have historically been challenging to electrify due to their high power and range requirements.
Adoption of vehicles like the B4 could have a considerable impact on reducing emissions from commercial fleets, which is aligned with broader environmental objectives. The potential long-term benefits include not only cleaner air but also a reduction in the reliance on fossil fuels and an improvement in energy security. It is important, however, to consider the source of the electricity used to charge these vehicles, as the environmental benefits are maximized when the electricity is generated from renewable sources.
The company anticipates deliveries of the Bollinger B4 chassis cab to begin in the second half of 2024
BREA, Calif., Feb. 06, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer, announces today Bollinger Motors (“Bollinger”) 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
“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
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, will qualify for the full eligible tax credit of
Today’s award followed a series of announcements in recent months, including partnerships with Our Next Energy in Novi, Michigan, to supply batteries, and with Roush Industries in Livonia, Michigan, 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, Michigan. 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.
About Mullen
Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of electric vehicles (“EVs”) that will be manufactured in its two United States-based assembly plants. Mullen’s EV development portfolio includes the Mullen FIVE EV Crossover, Mullen-GO Commercial Urban Delivery EV, Mullen Commercial Class 1-3 EVs and Bollinger Motors, which features both the B1 and B2 electric SUV trucks and Class 4-6 commercial offerings. On Sept. 7, 2022, Bollinger Motors became a majority-owned EV truck company of Mullen Automotive, and on Dec. 1, 2022, Mullen closed on the acquisition of Electric Last Mile Solutions’ (“ELMS”) assets, including all IP and a 650,000-square-foot plant in Mishawaka, Indiana.
To learn more about the Company, visit www.MullenUSA.com.
Forward-Looking Statements
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 Mullen and are difficult to predict. Examples of such risks and uncertainties include but are not limited the timing of deliveries of the Bollinger B4 chassis cab, the tax credit amounts received and total costs to purchasers of Bollinger B4 chassis cabs and whether the partnerships with Our Next Energy and Roush Industries will prove successful. Additional examples of such risks and uncertainties include but are not limited to: (i) Mullen’s ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Mullen's ability to maintain existing, and secure additional, contracts with manufacturers, parts and other service providers relating to its business; (iii) Mullen’s ability to successfully expand in existing markets and enter new markets; (iv) Mullen’s 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 Mullen’s business; (viii) changes in government licensing and regulation that may adversely affect Mullen’s business; (ix) the risk that changes in consumer behavior could adversely affect Mullen’s business; (x) Mullen’s ability to protect its intellectual property; and (xi) 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 with the Securities and Exchange Commission. Mullen anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Mullen 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 Mullen’s plans and expectations as of any subsequent date.
Contact:
Mullen Automotive, Inc.
+1 (714) 613-1900
www.MullenUSA.com
Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com
Attachment
FAQ
What is the significance of Bollinger Motors receiving IRS approval as a 'qualified manufacturer'?
What tax credit is available for eligible purchasers of the Bollinger B4 chassis cab?
What recent partnerships has Mullen Automotive Inc. announced?
When does Mullen Automotive Inc. anticipate deliveries of the Bollinger B4 chassis cab to begin?
