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The IRA allows tax exempt organizations, including government agencies, to receive a direct payment (in lieu of a tax credit) for investing in clean energy. This provision, which covers 10 tax years, is accelerating the electrification of transit bus fleets.
The transition to zero emission buses (ZEB) is well underway. The Infrastructure Investment and Jobs Act of 2021 boosted funding for zero emission projects. In 2022, the Federal Transit Administration (FTA) allocated $1.6b in Low and No Emission Grants and Bus and Bus Facilities Grants, supporting 150 transit fleets and facilities throughout the United States. California is leading the country with a commitment to phase out all diesel or natural-gas-powered buses by 2040.
As urban populations grow, municipalities increasingly look for ways to increase public transportation ridership. We expect the EV bus to be part of the solution, offering a much quieter and “fume-free” ride for passengers while decreasing carbon emissions in populated urban centers. Bloomberg expects that EV will comprise 24% of municipal bus sales in the US by 2026.
To be successful in this market, it is important to work with a partner who understands the unique requirements of the transit bus sector and who can scale operations as demand increases. This paper examines the drivers for electrification and the factors critical to success.
The IRA allows tax exempt organizations, including government agencies, to receive a direct payment (in lieu of a tax credit) for investing in clean energy. This provision, which covers 10 tax years, is accelerating the electrification of transit bus fleets.
The transition to zero emission buses (ZEB) is well underway. The Infrastructure Investment and Jobs Act of 2021 boosted funding for zero emission projects. In 2022, the Federal Transit Administration (FTA) allocated $1.6b in Low and No Emission Grants and Bus and Bus Facilities Grants, supporting 150 transit fleets and facilities throughout the United States. California is leading the country with a commitment to phase out all diesel or natural-gas-powered buses by 2040.
As urban populations grow, municipalities increasingly look for ways to increase public transportation ridership. We expect the EV bus to be part of the solution, offering a much quieter and “fume-free” ride for passengers while decreasing carbon emissions in populated urban centers. Bloomberg expects that EV will comprise 24% of municipal bus sales in the US by 2026.
To be successful in this market, it is important to work with a partner who understands the unique requirements of the transit bus sector and who can scale operations as demand increases. This paper examines the drivers for electrification and the factors critical to success.
