# Green Bus Tax Credit Act of 2021

This bill creates a tax credit to help public transit agencies and private companies buy environmentally friendly buses. Essentially, it's a financial incentive from the federal government to encourage the switch from traditional diesel buses to cleaner alternatives like electric or hydrogen-powered buses.

Here's how it works in practice: When a transit agency or company purchases a qualifying green bus, they can claim a tax credit—meaning they get money back on their taxes or owe less in taxes. This makes the upfront cost of buying these expensive buses more affordable. The credit applies to buses that produce significantly lower emissions than standard buses, which includes fully electric buses, hydrogen fuel cell buses, and other advanced clean-fuel vehicles.

The main people affected are public transit systems, school districts, and private bus companies that operate transportation services. For everyday riders, this could eventually mean cleaner air in their communities and potentially lower operating costs for transit systems, which might translate to better service or lower fares down the road. Communities with heavy bus traffic—especially in cities—would likely see the biggest environmental benefits from reduced emissions. The bill essentially uses the tax code as a tool to make it financially easier for organizations to make the switch to cleaner transportation, rather than forcing them to do so through regulations.

Green Bus Tax Credit Act of 2021

Cortez Masto, Catherine

Green Bus Tax Credit Act of 2021 This bill allows a manufacturer a zero-emission bus tax credit through 2026. The credit is equal to 10% of the sales price of a zero-emission bus. The credit only applies to the first $1 million of a vehicle's sales price and to buses used primarily in the United States and its possessions. The bill defines zero-emission bus as a motor vehicle that has a gross vehicle weight rating of not less than 14,000 pounds, is not powered or charged by an internal combustion engine, is propelled solely by an electric motor that draws electricity from a battery or fuel cell, is designed to carry 15 or more passengers, and satisfies Buy America requirements.