INFLATION REDUCTION ACT FEATURES TAX CREDIT FOR COMMERCIAL GRADE LAWN MOWERS

The Inflation Reduction Act was signed by President Biden on Aug. 16, 2022, and this new law includes a tax credit for electric vehicles. Within the definition, large commercial grade lawn mowers are included. The tax credit is 30 percent per vehicle/lawn mower, with a max of $7,500 per vehicle/lawn mower. The credit is available for sales made beginning Jan. 1, 2023, and the credit sunsets in 2032. The interpretation of commercial mowers counting as mobile machinery was confirmed during a discussion on the Senate floor. The parameters for these mowers must be less than 14,000 lbs. and have a battery capacity of not less than 7-kilowatt hours. This is significant because the parameters limit this tax credit to solely commercialgrade electric lawn mowers.