Overview
This post examines how the recently passed “Big Beautiful Bill” reshapes fleet strategies by introducing expiring electric‑vehicle tax credits through September 30, 2025, extending charging infrastructure incentives into mid‑2026, and reinstating 100% bonus depreciation on fleet assets- each of which demands timely procurement, infrastructure planning, and financial modeling. It also explores short‑term fuel price implications tied to expanded oil and gas leasing, underlining the importance of updating total cost of ownership analyses across EV and ICE options.
Sweeping federal policy updates are shaking up the way fleets plan, purchase, and operate. Dubbed the “Big Beautiful Bill,” this legislation introduces a mix of incentives and regulatory shifts aimed at accelerating the adoption of electric vehicles (EVs) and modernizing fleet infrastructure. But it also reopens opportunities for internal combustion engine (ICE) fleets, offering temporary relief in some areas while tightening the timeline in others.
For fleet managers, this bill is more than just another line item in the federal register; it’s a call to action. Expiring tax credits, extended infrastructure timelines, changes to depreciation rules, and even potential impacts on fuel costs mean fleets must reassess strategies now to avoid missed savings and stay ahead of the curve.
Whether you’re just starting to explore electrification or are well into your transition, understanding what’s in the bill and what it means for your bottom line is essential.
Here’s what fleets need to know to make informed decisions in the months ahead.
EV Tax Credits Are Ending Soon
One of the most impactful provisions of the bill is the expiration of the Commercial Clean Vehicle Tax Credit, which offers up to $40,000 per vehicle. After September 30, 2025, fleets will no longer be able to take advantage of this incentive, making the next 12 months a critical window for action.
For organizations considering the transition to electric vehicles (EVs), this deadline creates a clear sense of urgency. The tax credit can significantly reduce upfront costs and accelerate return on investment, but only if purchases are made in time. Waiting too long could result in missed savings and tighter budget constraints down the road.
Fleet managers should start reviewing their procurement schedules now. Evaluate which vehicle types are eligible, what your operational needs are, and how quickly vendors can deliver units. With growing demand and ongoing supply chain variability, building in a buffer is essential.
Charging Infrastructure Deadlines Extended
While vehicle incentives may be sunsetting soon, the bill delivers good news for infrastructure planning. Tax credits for alternative fuel charging infrastructure, including EV charging stations, have been extended through June 30, 2026.
This extension gives fleets more flexibility to plan, fund, and install charging systems without missing out on financial support. It’s especially beneficial for fleets managing multi-phase EV deployments or navigating permitting and construction delays.
To make the most of this incentive, prioritize infrastructure projects based on vehicle deployment plans and facility readiness. Consider not only hardware installation but also software integrations, grid capacity, and future scalability.
The longer timeline also opens the door to more strategic vendor partnerships and pilot programs. Use the next 12–18 months to ensure your infrastructure can meet both today’s needs and tomorrow’s growth.
Full Expensing of Fleet Purchases Returns
The bill also reinstates 100% bonus depreciation, allowing fleets to fully expense the cost of qualifying assets, such as vehicles, upfits, and equipment, in the first year of purchase. This tax benefit can significantly improve a fleet’s balance sheet and liquidity.
Previously, fleets had to depreciate large purchases over several years, which spread out tax benefits and created long-term accounting complexities. With the return of full expensing, it’s now possible to recover costs more quickly and reinvest those savings elsewhere in the operation.
For finance and procurement teams, this change enables more aggressive planning and investment cycles. Whether it’s expanding your EV fleet, upgrading ICE vehicles, or adding diagnostic and telematics equipment, purchases made in the current fiscal year can now deliver immediate financial returns.
Potential Fuel Price Impacts
The bill’s support for expanded domestic oil and gas leasing could lead to lower fuel prices in the short term, offering some relief to fleets still operating primarily with internal combustion engine (ICE) vehicles.
For these fleets, reduced fuel costs may improve operating margins and delay pressure to electrify. However, the relief is expected to be temporary. Fuel markets remain unpredictable, influenced by geopolitical tensions, global supply chains, and climate regulations.
This volatility reinforces the importance of long-term strategic planning. While short-term fuel savings are welcome, they should not be the sole driver of fleet investment decisions. A stable, predictable fuel source, like electricity from renewables, can offer greater cost certainty over time.
Fleets should continue to model both short- and long-term fuel scenarios when evaluating total cost of ownership (TCO) and transition timelines.
What Fleets Should Do Now
The provisions in the Big Beautiful Bill are reshaping the incentives and timelines that fleets must work within. While some deadlines are fast approaching, others offer room for strategic adjustments.
Here are a few key actions to consider:
- Reevaluate EV procurement plans: If electric vehicles are part of your future, accelerate purchase timelines to maximize incentives before the September 2025 cutoff.
- Align infrastructure rollouts: Take advantage of the extended charging station credits by mapping out your installation timeline through mid-2026. Build around facility readiness and vehicle deployment plans.
- Review financial models: Incorporate the return of 100% bonus depreciation into your capital planning. This could make it more financially viable to invest in new vehicles, tech, and upgrades sooner.
- Refine TCO analysis: Update cost models to account for possible short-term fuel savings and long-term volatility. Compare ICE vs EV operating costs with the most current data.
- Communicate across departments: These changes may impact procurement, finance, operations, and sustainability goals. Make sure stakeholders are aligned on updated plans and deadlines.
Need Help Navigating Policy Shifts?
AssetWorks helps fleets respond to change with clarity and confidence. Whether you’re building out a long-term electrification strategy, investing in smarter infrastructure, or trying to model your options under new tax laws, our team is here to help.
We offer tools and expertise to support:
- Capital planning and budgeting
- EV readiness and infrastructure rollouts
- Data modeling and TCO analysis
- Compliance and regulatory tracking
Let’s build a strategy that works, regardless of how the policy landscape shifts.
