Financing an EV Under Your LLC: Benefits and How It Works

If you own a business and use an EV for work, financing it under your LLC rather than personally can offer meaningful tax advantages and liability benefits. Here's what those advantages are, what they require, and how the financing process works.

Why Finance an EV Under Your LLC?

Section 179 deduction. Business owners can deduct the full purchase price of qualifying vehicles used for business in the year of purchase, up to the Section 179 limit ($1,160,000 in 2026, subject to change). For heavy vehicles over 6,000 lbs GVWR, including the Tesla Cybertruck, the full purchase price may be deductible. For lighter vehicles, the annual luxury auto depreciation cap applies (~$12,400 for passenger vehicles in 2026). Consult your accountant for current limits.

Bonus depreciation. In addition to Section 179, bonus depreciation can further accelerate deductions on business vehicles.

Business expense deductions. Vehicle operating costs, charging, insurance, maintenance, are deductible as business expenses in proportion to business use.

What Qualifies as Business Use?

The IRS requires documentation of business use to support deductions. You'll need a mileage log recording the date, destination, business purpose, and miles driven for each business trip. If the vehicle is used for both personal and business purposes, only the business-use percentage is deductible.

How Tenet's Financing Works for Business Owners

Tenet finances EVs based on the credit worthyness of the business owner. The vehicle can be titled under the LLCs or business entity alongside the individual. Requirements are similar to personal financing with some additions:

• The LLC must be in good standing with your state
• Basic business documentation (EIN, operating agreement)
• Standard underwriting criteria apply (credit profile, debt service)

The vehicle can be titled to the LLC, in addition to the primary borrower (often the business owner), which is necessary for the LLC to claim business expense deductions.

The Commercial Clean Vehicle Credit

The Section 30D consumer EV tax credit expired September 30, 2025. However, the Section 45W commercial clean vehicle credit for business-purchased EVs may still apply — up to $7,500 for lighter EVs and up to $40,000 for heavy commercial vehicles. This is separate from the consumer credit and has different eligibility requirements. Consult a tax professional for your specific situation.

One Last Thing

Financing an EV through your LLC adds paperwork but can unlock real tax value. Especially with high business use or a vehicle that qualifies for Section 179 or commercial clean vehicle credits. The financing process with Tenet is the same as personal, just with LLC documentation.

Always consult a CPA or tax attorney before making financial decisions.

Check your EV financing rate with Tenet — two minutes, no credit impact.

Not tax advice. Consult a qualified tax professional for your specific situation. Rates as of April 2026, subject to change. APR range 5.25%–18.99%; regional rates as low as 4.40%. Minimum loan balance $10,000. Tenet Energy Inc., NMLS #2262929.