Go Back
Image

Mike Bush

Chief Growth Officer CDL 1000
Subscribe

Tax Incentives Are Key for Green Commercial Vehicle Adoption

Weaver Banner Ad

 

The push toward greener logistics is gaining traction as concerns about environmental sustainability and climate change continue to grow. Traditional diesel-powered vehicles, long the backbone of the freight industry, are increasingly seen as unsustainable. The introduction of zero-emission vehicles like electric and hydrogen trucks is a promising step, but these technologies face significant barriers in terms of infrastructure and cost. Tax incentives, such as those highlighted in recent legislative measures, aim to bridge this gap by making green commercial vehicle adoption financially viable for companies.

The Inflation Reduction Act is continuing to incentivize businesses that rely on or operate commercial vehicles, through the rest of this year, to invest in eco-friendly alternatives that run on hydrogen fuel cells or batteries. Through the IRA, businesses can qualify for a credit of up to 30% of the commercial vehicle’s cost, creating an avenue for post-gasoline green commercial vehicle adoption at scale with few operational impacts or financial roadblocks.

Are more businesses taking advantage of these credits to embrace green commercial vehicle adoption? How important is a tax credit to the actual viability of green commercial vehicle adoption, and how might it impact a companies’ logistics, operational expenditures, and ESG goals? Mike Bush, a supply chain marketing expert, logistics trends analyst, and Head of Marketing at Talon Logistics, breaks down why he sees tax incentives like the IRA’s being so critical for moving the needle on reducing commercial freight’s carbon footprint.

“These incentives are great in that they start to push cost parity across their internal combustion engine approach. Right now, you can go buy a garbage truck for, let’s say, X dollars, but the zero emission version of that truck is going to be way more expensive,” Bush said. “Even to make it so that a fleet that wants to run zero emission vehicles can, we have to find ways to reduce the cost.”

Article written by Daniel Litwin.

Fields with ( * ) are required

To submit a comment, please provide your name and email or sign in at MarketScale.com

200

Recent Posts

Trucking solutions
Sustainable Trucking Solutions for Small Businesses: Increasing Profitability and Efficiency with Adam Wingfield Articles - May 17, 2024

The trucking industry is at a pivotal moment, facing significant changes and challenges from regulatory shifts to technological innovations. As one of the backbones of the global economy, the importance of efficient and sustainable trucking solutions cannot be overstated. With the industry grappling with issues like driver shortages, regulatory compliance, and the implementation of…

Streamlining the returns process
Minimising Waste, Maximising Reusability of Returned Items: Streamlining the Returns Process with Two Boxes Articles - May 10, 2024

As ecommerce continues to dominate retail, the efficiency of handling returns becomes crucial for customer satisfaction and operational sustainability. The return rates for online purchases are significantly higher than those for brick-and-mortar stores, underscoring a major challenge for online retailers. In this environment, investing in technology to streamline the returns process is essential for…

ESG practices
Global Collaboration Drives Sustainable Maritime ESG Practices Articles - Apr 26, 2024

Amidst the vast expanse of the maritime industry, a new wave is cresting—the wave of environmental, social, and governance (ESG) imperatives. From reducing carbon footprints to fostering social equity, maritime entities are grappling with the complexities of sustainability like never before. As the global focus sharpens on ESG practices, the maritime sector finds itself…

Register to MarketScale.com for Mike Bush episodes, events, and more.


Already have an account?