VANCOUVER, BC - Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), a supplier of commercial electric vehicles in North America, announced today that its customers are now eligible for significant tax credits for purchasing its electric vehicles.
The United States Internal Revenue Service (IRS) has approved the company as a "qualified manufacturer," enabling a tax credit of up to $7,500 for the VMC 1200 Class 3 Electric Truck and up to $40,000 for the Vicinity Lightning electric transit bus.
The tax credits are part of the Commercial Clean Vehicle Credit under the Inflation Reduction Act of 2022, which aims to encourage businesses and tax-exempt organizations to transition to electric vehicles (EVs). There is no limit on the number of credits a business can claim, and Vicinity will be listed on the IRS Qualified Manufacturer index.
Brent Phillips, President of Vicinity Motor Corp., stated that the Commercial Clean Vehicle Credit targets vehicles like their VMC 1200 and Vicinity Lightning, offering incentives that promote the electrification of commercial fleets.
He emphasized that the growth of their distribution network in the U.S. would benefit from the additional financial incentive for new buyers considering EVs for their businesses.
Ronnie Garcia, Grant & Government Relations Manager at Vicinity, highlighted the financial benefits of the 45W tax credit, which he noted would make the company's electric vehicles more accessible and reduce the total cost of ownership.
Garcia pointed out that the tax credit would lead to lower operating and maintenance expenses for businesses and transit agencies.
Vicinity Motor Corp. specializes in supplying electric vehicles, including buses and trucks, to the transit and industrial markets through a network of dealers and manufacturing partners. The company's product lineup includes electric, CNG, and clean-diesel vehicles designed for public and commercial enterprise use.
This development follows a series of efforts by governments and organizations to accelerate the adoption of eco-friendly transportation solutions. The tax credit initiative by the IRS is expected to be a significant advantage for Vicinity's customers, furthering the company's commitment to providing sustainable transportation options.
The information in this article is based on a press release statement from Vicinity Motor Corp.
InvestingPro Insights
As Vicinity Motor Corp. (NASDAQ:VEV) garners attention with its eligibility for significant tax credits under the Commercial Clean Vehicle Credit, the financial metrics and analyst insights from InvestingPro provide a deeper understanding of the company's current market position. With a market capitalization of $18.63 million, the company shows a notable revenue growth, with a 65.18% increase over the last twelve months as of Q1 2024. This surge in revenue is further highlighted by an impressive quarterly growth figure of 399.58% in Q1 2024.
However, the InvestingPro Data indicates that VEV is grappling with challenges. The company's P/E Ratio stands at -0.96, reflecting concerns about profitability, which aligns with InvestingPro Tips that suggest the company may not be profitable this year and has been rapidly burning through cash. Additionally, with a Gross Profit Margin of 11.97% over the last twelve months as of Q1 2024, VEV faces difficulties in maintaining strong profit margins.
Investors considering VEV should be aware of the high volatility in its stock price, as evidenced by significant declines over various timeframes, including a 29.57% drop over the last week and a 66.76% fall over the last year. These price fluctuations may present both risks and opportunities, depending on market conditions and individual investment strategies.
For those looking to delve further into Vicinity Motor Corp.'s financials and future prospects, InvestingPro offers additional insights. There are 15 more InvestingPro Tips available for VEV, which can be accessed by visiting InvestingPro Vicinity Motor Corp. To enhance your investment research, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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