Learn how Withum helped a limousine company with its corporate income tax return to claim over $150,000 in electric vehicle tax credits.
A Withum client, an established limousine company experiencing significant growth, was unsure of the recent effects of new tax policies and credits that applied to them. The business immediately saw financial gains and better sustainability reporting after engaging with Withum on the related benefits and incentives in the marketplace.
The U.S.-based limousine company has an expansive vehicle fleet including electric vehicles (“EVs”) and provides professional and personal transportation services. The business has rapidly grown over the past 20 years, profiting from serving hundreds of national clients.
EVs and the associated clean energy tax credits have evolved over the past year. The client had taken 2022 credits in relation to their qualified electric chargers. However, when it came to purchasing or leasing electric vehicles for their fleet, the new commercial clean vehicle credit made them induced them to purchase the electric vehicles and claim the electric commercial vehicle credit of $7,500 per vehicle and the benefits of favorable depreciation. This change in business model was directly linked to the significant law changes regarding clean energy credit initiatives included in the Inflation Reduction Act passed in August 2022.
The Approach And Solution
The client attended Withum’s tax webinars throughout the year and contacted our team for more information. Our National Tax Practice team scheduled a number of exploratory calls and looped in decision-makers throughout the process. We embraced the latest tax developments and shared our industry knowledge while listening to the limousine company’s questions and concerns.
With the power of Withum’s team and the client’s transparency, over $150,000 will be claimed in electric vehicle tax credits for 2023.
This is a significant increase from the prior year and demonstrates our ability to navigate and assess these complex rules. The incentives are complemented by additional environmental, social and governance benefits as the Company will publish these sustainability efforts to their industry, suppliers, and customers.
Don’t miss out on the opportunity to reduce your tax liability and support clean energy initiatives. Learn how to take advantage of these tax credits and make a positive impact on both your finances and the environment.