Sen. Catherine Cortez Masto introduced S. 5215 on August 3, 2026, proposing to extend and expand several clean-transportation tax incentives. The Cleaner Transportation Access for All Act was referred to the Committee on Finance after two readings.
The proposal has not changed the tax code. As of October 22, 2026, it remained an introduced bill, while the early termination dates set by the One Big Beautiful Bill Act remained in force.
Cortez Masto, a Nevada Democrat, introduced the measure with four colleagues. They were Sen. Alex Padilla of California, Sen. Chris Van Hollen of Maryland, Sen. Michael Bennet of Colorado and Sen. Jacky Rosen of Nevada.
The bill’s stated purpose is to amend the Internal Revenue Code to extend and enhance certain electric-vehicle tax credits. It also contains a provision addressing tax-exempt bonds for zero-emission vehicle infrastructure.
The proposal covers used vehicles, new vehicles and refueling property. It does not extend the commercial clean-vehicle credit.
The provisions would take effect on different schedules. The bill text sets separate rules for vehicle acquisition and charging-property installation.
| Credit or provision | Proposed change | Effective-date rule |
|---|---|---|
| Previously owned clean vehicles, §25E | Extend the credit through December 31, 2031 | Vehicles acquired after September 30, 2025 |
| New clean vehicles, §30D | Extend the credit through December 31, 2031 | Vehicles acquired after the date of enactment |
| Refueling property, §30C | Extend the credit through December 31, 2031 | Property placed in service after the date of enactment |
| Commercial clean vehicles, §45W | No extension in the bill | The phaseout remains in place |
The used-vehicle provision would change the date written into §25E(g). The bill also adjusts two §30D provisions, replacing “during calendar year 2026” with “after December 31, 2025.” These are proposed amendments, not current law.
Charging provisions would change home credits and infrastructure bonds
For §30C, the bill would remove the eligible census tract requirement. It would create a new provision in §30C(c)(3), setting a 50 percent credit rate for an individual’s qualifying refueling property installed at a residence and capable of charging an electric vehicle’s battery.
Under the prior framework, the property credit generally covered up to 30 percent of the property’s basis, with a maximum credit of up to $100,000 per single item. Prevailing-wage and apprenticeship rules applied to depreciable property. The proposal also extends the provision’s statutory date.
A separate section would add “zero-emission vehicle infrastructure” to the exempt-facility bond rules in section 142. Qualifying property could not include a building or its structural components. It would have to be available to members of the general public, residents of a multifamily residential building, or employees at a workplace or customers at a commercial location.
The property must serve vehicles at the point where they are charged or fueled. The definition includes utility service connections, utility panel upgrades and contributions in aid of construction, as described in section 118, when required for vehicle charging or fueling. The bill defines a zero-emissions vehicle by reference to section 88.102–94 of title 40, Code of Federal Regulations.
The 2025 law ended credits before this proposal was introduced
The One Big Beautiful Bill Act, Public Law 119-21, was enacted July 3, 2025, and ended clean-vehicle credits earlier than the Inflation Reduction Act schedule. Its phaseout covered the previously owned vehicle credit under §25E, the new vehicle credit under §30D and the commercial credit under §45W.
Before the phaseout, the maximum credits under the Inflation Reduction Act framework were $4,000 for a previously owned vehicle, $7,500 for a new vehicle and $40,000 for a commercial vehicle. The proposal would not extend §45W.
A restored §25E credit would retain buyer requirements in the law’s existing framework. A buyer must be an individual purchasing for use rather than resale, must not have claimed the credit in the prior three years, and cannot be another taxpayer’s dependent. Businesses and lessees cannot claim the used-vehicle credit.
The modified adjusted gross income limits for that credit are $150,000 for joint filers, $112,500 for head-of-household filers and $75,000 for single filers. These are eligibility limits, not changes proposed by the bill.
For §30D, final assembly must occur in North America, and income and vehicle-price limits apply to individual buyers. Those limits do not apply to businesses claiming the general business credit portion. The bill text does not set out a new schedule for the commercial credit.
IRS guidance drew objections over claims made after the phaseout
The IRS issued IR-2025-86 and Fact Sheet 2025-05 on August 21, 2025, answering questions about the accelerated termination of §§25C, 25D, 25E, 30C, 30D, 45L, 45W and 179D. The guidance also clarified when a taxpayer could claim the new clean-vehicle credit.
Sen. Bernie Moreno, an Ohio Republican, and Sen. John Barrasso, a Wyoming Republican, wrote to Treasury Secretary Scott Bessent on September 30, 2025, asking Treasury and the IRS to close what they described as a loophole. They alleged that some car companies directed captive finance entities to make written binding agreements with dealers and pay nominal deposits for vehicles that might not be leased to end users for months.
The senators asked the agencies to require agreements to identify the lessee and require the end user to make the deposit. They wrote:
“The intent of P.L. 119-21 is clear – no credits allowed after September 30, 2025.”
The bill remains before the committee. Its provisions have not been enacted.
