Maximize Your Savings: A Fleet Owner’s Guide to Class 8 Zero-Emissions Truck Incentives

There’s no doubt zero-emissions trucks are the future of the transportation industry. However, the initial investment in new technology can be high, so governments are stepping in to offer support to fleet owners that may reduce costs. With the combination of tax credits, vouchers, and grants on both the federal and local levels, owners may be able to save big.

Nikola is at the forefront of innovation. Fleets can order a hydrogen-powered fuel cell electric vehicle with a range of up to 500 miles and a refueling time of approximately 20 minutes, depending on fuel quantity and station capability.

If you are ready to transition to zero-emissions vehicles (ZEVs), here’s what you need to know. Programs are available to:

1. Reduce your tax liability with federal and state tax credits
2. Receive vouchers for immediate cost reduction at the point of sale
3. Apply for competitive grants that offer substantial financial assistance

By understanding how each incentive process works, you can take advantage of all available funds by stacking incentives on every level. We make it easy to collaborate with a Nikola representative or authorized Nikola dealer today to receive expert assistance on maximizing benefits for your transitioning fleet.

Reduce Your Tax Liability with Tax Credits

Tax credits are straightforward incentives that are applied directly to your accounting process. Since they may immediately reduce your tax liability, both federal and state credits are a powerful tool for any ZEV fleet owner.

On the federal level, the United States government offers the Qualified Commercial Clean Vehicle Credit of up to $40,000 per ZEV. For fleets, the credit is applicable per vehicle for each year with no cap on the number of credits that you can claim each year. The current incentive structure is projected to remain valid until 2032.

Incentives on a state level are regularly developing, creating an added challenge to navigate, but also may create greater financial benefits to capitalize upon. Some states, such as Utah and Colorado, encourage the purchase of ZEVs by providing their own tax credits. Other states may not offer these kinds of incentives.

To fully take advantage of tax relief on both a federal and state level, begin by understanding what credits apply to your fleet within your operating region. Plan strategically to guarantee you will receive the best tax breaks available. For instance, you may be able to maximize your allowance for annual credits by scheduling purchases of ZEVs to coincide with certain tax periods.

As state-specific opportunities continually fluctuate and a single repository of nationwide and state-offered tax credits does not currently exist, Nikola can help you stay informed. A timely discussion with a Nikola-authorized dealer may help you understand recent updates, plan ahead and budget for the future of your fleet. Additionally, please subscribe to our incentive’s newsletter to receive updates on new and existing incentives.

Vouchers May Provide Immediate Cost Reduction

Vouchers are the second type of incentive, offering upfront cost reductions at the point of purchase. The financial benefits may be significant and immediate, as the voucher is obtained ahead of time and applied at the point-of-sale transaction.

Dealers play a crucial role in the application process, assisting you to access to the largest discounts while minimizing regulatory hassles.

Most states now recognize that expanding the available options helps fleets adopt new vehicle technology. California’s Hybrid and Zero-Emissions Truck and Bus Voucher Incentive Project (HVIP) leads the way toward encouraging fleet owners to transition to ZEVs. Other states, such as Massachusetts, are beginning to introduce similar voucher programs.

Note that prompt action may be required when a voucher becomes available, as they are typically offered on a limited basis. Nikola-authorized dealers are trained to facilitate the voucher application process, making it more likely that your application is handled quickly and smoothly.

Offset Major Costs with Competitive Grants

Grant programs are the third major type of incentive. Unlike tax credits and vouchers, grant applications must be completed by the applicant, whether it’s an owner, operator, or fleet manager. The process may be complex and requires detailed information about a fleet, diesel trucks being replaced, and the anticipated benefits of new ZEVs to the community.

Grants can be competitive, which means that applications may be thoroughly assessed and scored using criteria established by the granting body. These factors may emphasize smaller fleets, marginalized communities, and businesses dedicated to improving local air quality. And as a result, smaller fleets may have a good chance of winning grant funding.

Grants typically are available in approximately 30 states at various times throughout the year, offering somewhat wider geographic accessibility than voucher programs and allowing fleet owners across the country to access essential funding regardless of location.

Assistance from a knowledgeable party can be quite beneficial during the application process. Nikola may be able to guide fleets interested in navigating applicable competitive grant applications.

Stack Incentives for Even Greater Savings: Cover Up to 90% of Cost

In some cases, incentives can be stacked for even greater cost reductions for zero-emissions vehicles.

For example, for a small fleet owner in California with fewer than 20 trucks and less than $15 million in annual revenue, can purchase a brand new zero-emissions vehicle, such as a Nikola Class 8 ZEV truck for up to a 90% discount. How? By combining the California HVIP voucher, which already provides substantial discounts, with other local incentives.

Nikola dealers can help you understand eligibility requirements and how to effectively combine them.

Nikola Can Help Navigate the Complicated Landscape of Incentives

Nikola’s representatives understand the challenges of each type of application—whether annual federal tax credits that go toward your whole fleet, a once-in-a-lifetime grant opportunity to replace old diesel trucks, or a new state-issued voucher to drastically cut the cost of a new Nikola truck.

If you have questions about available incentives or would like to learn more about our zero tailpipe emissions Class 8 semi-trucks, please contact us or reach out to an authorized Nikola dealer today.