On March 17, 2025, the American Financial Services Association (AFSA) submitted a comment letter to the Internal Revenue Service (IRS) concerning a proposed rule for Commercial Clean Vehicle Tax Credits. This rule aims to clarify certain aspects of the Section 45W tax credit.
In its letter, AFSA explained how leasing companies are pursuing clean vehicle tax credits and using the proceeds from these credits to reduce leasing costs for consumers. AFSA emphasized that leasing companies require clarity on how these tax credits will be administered in the future. The letter highlighted several areas where the proposed rule could be refined to provide predictable outcomes for both leasing companies and consumers.