Collapse to view only [§ 30. Repealed.
- § 27. Taxes of foreign countries and possessions of the United States
- [§ 28. Renumbered § 45C]
- [§ 29. Renumbered § 45K]
- [§ 30. Repealed.
- [§ 30A. Repealed.
- § 30B. Alternative motor vehicle credit
- § 30C. Alternative fuel vehicle refueling property credit
- § 30D. Clean vehicle credit
§ 27. Taxes of foreign countries and possessions of the United States
The amount of taxes imposed by foreign countries and possessions of the United States shall be allowed as a credit against the tax imposed by this chapter to the extent provided in section 901 1
1 So in original. Probably should be followed by a period.
(Aug. 16, 1954, ch. 736, 68A Stat. 13, § 33; Pub. L. 94–455, title X, § 1051(a), Oct. 4, 1976, 90 Stat. 1643; renumbered § 27, Pub. L. 98–369, div. A, title IV, § 471(c), July 18, 1984, 98 Stat. 826; Pub. L. 115–141, div. U, title IV, § 401(d)(1)(A), Mar. 23, 2018, 132 Stat. 1206.)
[§ 28. Renumbered § 45C]
[§ 29. Renumbered § 45K]
[§ 30. Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(2)(A), Dec. 19, 2014, 128 Stat. 4037]
[§ 30A. Repealed. Pub. L. 115–141, div. U, title IV, § 401(d)(1)(B), Mar. 23, 2018, 132 Stat. 1206]
§ 30B. Alternative motor vehicle credit
(a) Allowance of creditThere shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of—
(1) the new qualified fuel cell motor vehicle credit determined under subsection (span),
(2) the new advanced lean burn technology motor vehicle credit determined under subsection (c),
(3) the new qualified hybrid motor vehicle credit determined under subsection (d),
(4) the new qualified alternative fuel motor vehicle credit determined under subsection (e), and
(5) the plug-in conversion credit determined under subsection (i).
(span) New qualified fuel cell motor vehicle credit
(1) In generalFor purposes of subsection (a), the new qualified fuel cell motor vehicle credit determined under this subsection with respect to a new qualified fuel cell motor vehicle placed in service by the taxpayer during the taxable year is—
(A) $8,000 ($4,000 in the case of a vehicle placed in service after December 31, 2009), if such vehicle has a gross vehicle weight rating of not more than 8,500 pounds,
(B) $10,000, if such vehicle has a gross vehicle weight rating of more than 8,500 pounds but not more than 14,000 pounds,
(C) $20,000, if such vehicle has a gross vehicle weight rating of more than 14,000 pounds but not more than 26,000 pounds, and
(D) $40,000, if such vehicle has a gross vehicle weight rating of more than 26,000 pounds.
(2) Increase for fuel efficiency
(A) In generalThe amount determined under paragraph (1)(A) with respect to a new qualified fuel cell motor vehicle which is a passenger automobile or light truck shall be increased by—
(i) $1,000, if such vehicle achieves at least 150 percent but less than 175 percent of the 2002 model year city fuel economy,
(ii) $1,500, if such vehicle achieves at least 175 percent but less than 200 percent of the 2002 model year city fuel economy,
(iii) $2,000, if such vehicle achieves at least 200 percent but less than 225 percent of the 2002 model year city fuel economy,
(iv) $2,500, if such vehicle achieves at least 225 percent but less than 250 percent of the 2002 model year city fuel economy,
(v) $3,000, if such vehicle achieves at least 250 percent but less than 275 percent of the 2002 model year city fuel economy,
(vi) $3,500, if such vehicle achieves at least 275 percent but less than 300 percent of the 2002 model year city fuel economy, and
(vii) $4,000, if such vehicle achieves at least 300 percent of the 2002 model year city fuel economy.
(B) 2002 model year city fuel economyFor purposes of subparagraph (A), the 2002 model year city fuel economy with respect to a vehicle shall be determined in accordance with the following tables:
(i) In the case of a passenger automobile:
(ii) In the case of a light truck:
If vehicle inertia weight class is: | The 2002 model year city fuel economy is: |
|---|---|
1,500 or 1,750 lbs | 39.4 mpg |
2,000 lbs | 35.2 mpg |
2,250 lbs | 31.8 mpg |
2,500 lbs | 29.0 mpg |
2,750 lbs | 26.8 mpg |
3,000 lbs | 24.9 mpg |
3,500 lbs | 21.8 mpg |
4,000 lbs | 19.4 mpg |
4,500 lbs | 17.6 mpg |
5,000 lbs | 16.1 mpg |
5,500 lbs | 14.8 mpg |
6,000 lbs | 13.7 mpg |
6,500 lbs | 12.8 mpg |
7,000 to 8,500 lbs | 12.1 mpg. |
(C) Vehicle inertia weight class
(3) New qualified fuel cell motor vehicleFor purposes of this subsection, the term “new qualified fuel cell motor vehicle” means a motor vehicle—
(A) which is propelled by power derived from 1 or more cells which convert chemical energy directly into electricity by combining oxygen with hydrogen fuel which is stored on board the vehicle in any form and may or may not require reformation prior to use,
(B) which, in the case of a passenger automobile or light truck, has received on or after the date of the enactment of this section a certificate that such vehicle meets or exceeds the Bin 5 Tier II emission level established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle,
(C) the original use of which commences with the taxpayer,
(D) which is acquired for use or lease by the taxpayer and not for resale, and
(E) which is made by a manufacturer.
(c) New advanced lean burn technology motor vehicle credit
(1) In general
(2) Credit amount
(A) Fuel economy
(i) In general
(ii) 2002 model year city fuel economy
(B) Conservation credit
(3) New advanced lean burn technology motor vehicleFor purposes of this subsection, the term “new advanced lean burn technology motor vehicle” means a passenger automobile or a light truck—
(A) with an internal combustion engine which—
(i) is designed to operate primarily using more air than is necessary for complete combustion of the fuel,
(ii) incorporates direct injection,
(iii) achieves at least 125 percent of the 2002 model year city fuel economy,
(iv) for 2004 and later model vehicles, has received a certificate that such vehicle meets or exceeds—(I) in the case of a vehicle having a gross vehicle weight rating of 6,000 pounds or less, the Bin 5 Tier II emission standard established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle, and(II) in the case of a vehicle having a gross vehicle weight rating of more than 6,000 pounds but not more than 8,500 pounds, the Bin 8 Tier II emission standard which is so established,
(B) the original use of which commences with the taxpayer,
(C) which is acquired for use or lease by the taxpayer and not for resale, and
(D) which is made by a manufacturer.
(4) Lifetime fuel savingsFor purposes of this subsection, the term “lifetime fuel savings” means, in the case of any new advanced lean burn technology motor vehicle, an amount equal to the excess (if any) of—
(A) 120,000 divided by the 2002 model year city fuel economy for the vehicle inertia weight class, over
(B) 120,000 divided by the city fuel economy for such vehicle.
(d) New qualified hybrid motor vehicle credit
(1) In general
(2) Credit amount
(A) Credit amount for passenger automobiles and light trucksIn the case of a new qualified hybrid motor vehicle which is a passenger automobile or light truck and which has a gross vehicle weight rating of not more than 8,500 pounds, the amount determined under this paragraph is the sum of the amounts determined under clauses (i) and (ii).
(i) Fuel economy
(ii) Conservation credit
(B) Credit amount for other motor vehicles
(i) In general
(ii) Applicable percentageFor purposes of clause (i), the applicable percentage is—(I) 20 percent if the vehicle achieves an increase in city fuel economy relative to a comparable vehicle of at least 30 percent but less than 40 percent,(II) 30 percent if the vehicle achieves such an increase of at least 40 percent but less than 50 percent, and(III) 40 percent if the vehicle achieves such an increase of at least 50 percent.
(iii) Qualified incremental hybrid costFor purposes of this subparagraph, the qualified incremental hybrid cost of any vehicle is equal to the amount of the excess of the manufacturer’s suggested retail price for such vehicle over such price for a comparable vehicle, to the extent such amount does not exceed—(I) $7,500, if such vehicle has a gross vehicle weight rating of not more than 14,000 pounds, $15,000, if such vehicle has a gross vehicle weight rating of more than 14,000 pounds but not more than 26,000 pounds, and(III) $30,000, if such vehicle has a gross vehicle weight rating of more than 26,000 pounds.
(iv) Comparable vehicle
(v) Certification
(3) New qualified hybrid motor vehicleFor purposes of this subsection—
(A) In generalThe term “new qualified hybrid motor vehicle” means a motor vehicle—
(i) which draws propulsion energy from onboard sources of stored energy which are both—(I) an internal combustion or heat engine using consumable fuel, and(II) a rechargeable energy storage system,
(ii) which, in the case of a vehicle to which paragraph (2)(A) applies, has received a certificate of conformity under the Clean Air Act and meets or exceeds the equivalent qualifying California low emission vehicle standard under section 243(e)(2) of the Clean Air Act for that make and model year, and(I) in the case of a vehicle having a gross vehicle weight rating of 6,000 pounds or less, the Bin 5 Tier II emission standard established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle, and(II) in the case of a vehicle having a gross vehicle weight rating of more than 6,000 pounds but not more than 8,500 pounds, the Bin 8 Tier II emission standard which is so established,
(iii) which has a maximum available power of at least—(I) 4 percent in the case of a vehicle to which paragraph (2)(A) applies,(II) 10 percent in the case of a vehicle which has a gross vehicle weight rating of more than 8,500 pounds and not more than 14,000 pounds, and(III) 15 percent in the case of a vehicle in excess of 14,000 pounds,
(iv) which, in the case of a vehicle to which paragraph (2)(B) applies, has an internal combustion or heat engine which has received a certificate of conformity under the Clean Air Act as meeting the emission standards set in the regulations prescribed by the Administrator of the Environmental Protection Agency for 2004 through 2007 model year diesel heavy duty engines or ottocycle heavy duty engines, as applicable,
(v) the original use of which commences with the taxpayer,
(vi) which is acquired for use or lease by the taxpayer and not for resale, and
(vii) which is made by a manufacturer.
Such term shall not include any vehicle which is not a passenger automobile or light truck if such vehicle has a gross vehicle weight rating of less than 8,500 pounds.
(B) Consumable fuel
(C) Maximum available power
(i) Certain passenger automobiles and light trucks
(ii) Other motor vehicles
(D) Exclusion of plug-in vehicles
(e) New qualified alternative fuel motor vehicle credit
(1) Allowance of credit
(2) Applicable percentageFor purposes of paragraph (1), the applicable percentage with respect to any new qualified alternative fuel motor vehicle is—
(A) 50 percent, plus
(B) 30 percent, if such vehicle—
(i) has received a certificate of conformity under the Clean Air Act and meets or exceeds the most stringent standard available for certification under the Clean Air Act for that make and model year vehicle (other than a zero emission standard), or
(ii) has received an order certifying the vehicle as meeting the same requirements as vehicles which may be sold or leased in California and meets or exceeds the most stringent standard available for certification under the State laws of California (enacted in accordance with a waiver granted under section 209(span) of the Clean Air Act) for that make and model year vehicle (other than a zero emission standard).
For purposes of the preceding sentence, in the case of any new qualified alternative fuel motor vehicle which weighs more than 14,000 pounds gross vehicle weight rating, the most stringent standard available shall be such standard available for certification on the date of the enactment of the Energy Tax Incentives Act of 2005.
(3) Incremental costFor purposes of this subsection, the incremental cost of any new qualified alternative fuel motor vehicle is equal to the amount of the excess of the manufacturer’s suggested retail price for such vehicle over such price for a gasoline or diesel fuel motor vehicle of the same model, to the extent such amount does not exceed—
(A) $5,000, if such vehicle has a gross vehicle weight rating of not more than 8,500 pounds,
(B) $10,000, if such vehicle has a gross vehicle weight rating of more than 8,500 pounds but not more than 14,000 pounds,
(C) $25,000, if such vehicle has a gross vehicle weight rating of more than 14,000 pounds but not more than 26,000 pounds, and
(D) $40,000, if such vehicle has a gross vehicle weight rating of more than 26,000 pounds.
(4) New qualified alternative fuel motor vehicleFor purposes of this subsection—
(A) In generalThe term “new qualified alternative fuel motor vehicle” means any motor vehicle—
(i) which is only capable of operating on an alternative fuel,
(ii) the original use of which commences with the taxpayer,
(iii) which is acquired by the taxpayer for use or lease, but not for resale, and
(iv) which is made by a manufacturer.
(B) Alternative fuel
(5) Credit for mixed-fuel vehicles
(A) In generalIn the case of a mixed-fuel vehicle placed in service by the taxpayer during the taxable year, the credit determined under this subsection is an amount equal to—
(i) in the case of a 75/25 mixed-fuel vehicle, 70 percent of the credit which would have been allowed under this subsection if such vehicle was a qualified alternative fuel motor vehicle, and
(ii) in the case of a 90/10 mixed-fuel vehicle, 90 percent of the credit which would have been allowed under this subsection if such vehicle was a qualified alternative fuel motor vehicle.
(B) Mixed-fuel vehicleFor purposes of this subsection, the term “mixed-fuel vehicle” means any motor vehicle described in subparagraph (C) or (D) of paragraph (3), which—
(i) is certified by the manufacturer as being able to perform efficiently in normal operation on a combination of an alternative fuel and a petroleum-based fuel,
(ii) either—(I) has received a certificate of conformity under the Clean Air Act, or(II) has received an order certifying the vehicle as meeting the same requirements as vehicles which may be sold or leased in California and meets or exceeds the low emission vehicle standard under section 88.105–94 of title 40, Code of Federal Regulations, for that make and model year vehicle,
(iii) the original use of which commences with the taxpayer,
(iv) which is acquired by the taxpayer for use or lease, but not for resale, and
(v) which is made by a manufacturer.
(C) 75/25 mixed-fuel vehicle
(D) 90/10 mixed-fuel vehicle
(f) Limitation on number of new qualified hybrid and advanced lean-burn technology vehicles eligible for credit
(1) In general
(2) Phaseout period
(3) Applicable percentageFor purposes of paragraph (1), the applicable percentage is—
(A) 50 percent for the first 2 calendar quarters of the phaseout period,
(B) 25 percent for the 3d and 4th calendar quarters of the phaseout period, and
(C) 0 percent for each calendar quarter thereafter.
(4) Controlled groups
(A) In general
(B) Inclusion of foreign corporations
(5) Qualified vehicle
(g) Application with other credits
(1) Business credit treated as part of general business credit
(2) Personal credit
(h) Other definitions and special rulesFor purposes of this section—
(1) Motor vehicle
(2) City fuel economy
(3) Other terms
(4) Reduction in basis
(5) No double benefitThe amount of any deduction or other credit allowable under this chapter—
(A) for any incremental cost taken into account in computing the amount of the credit determined under subsection (e) shall be reduced by the amount of such credit attributable to such cost, and
(B) with respect to a vehicle described under subsection (span) or (c), shall be reduced by the amount of credit allowed under subsection (a) for such vehicle for the taxable year (determined without regard to subsection (g)).
(6) Property used by tax-exempt entity
(7) Property used outside United States, etc., not qualified
(8) Recapture
(9) Election to not take credit
(10) Interaction with air quality and motor vehicle safety standardsUnless otherwise provided in this section, a motor vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with—
(A) the applicable provisions of the Clean Air Act for the applicable make and model year of the vehicle (or applicable air quality provisions of State law in the case of a State which has adopted such provision under a waiver under section 209(span) of the Clean Air Act), and
(B) the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code.
[(i) Repealed. Puspan. L. 117–169, title I, § 13401(i)(2)(B), Aug. 16, 2022, 136 Stat. 1961]
(j) Regulations
(1) In general
(2) Coordination in prescription of certain regulations
(k) TerminationThis section shall not apply to any property purchased after—
(1) in the case of a new qualified fuel cell motor vehicle (as described in subsection (span)), December 31, 2021,
(2) in the case of a new advanced lean burn technology motor vehicle (as described in subsection (c)) or a new qualified hybrid motor vehicle (as described in subsection (d)(2)(A)), December 31, 2010,
(3) in the case of a new qualified hybrid motor vehicle (as described in subsection (d)(2)(B)), December 31, 2009, and
(4) in the case of a new qualified alternative fuel vehicle (as described in subsection (e)), December 31, 2010.
(Added Puspan. L. 109–58, title XIII, § 1341(a), Aug. 8, 2005, 119 Stat. 1038; amended Puspan. L. 109–135, title IV, §§ 402(j), 412(d), Dec. 21, 2005, 119 Stat. 2615, 2636; Puspan. L. 110–343, div. B, title II, § 205(span), Oct. 3, 2008, 122 Stat. 3838; Puspan. L. 111–5, div. B, title I, §§ 1141(span)(1), 1142(span)(2), 1143(a)–(c), 1144(a), Fespan. 17, 2009, 123 Stat. 328, 330–332; Puspan. L. 111–148, title X, § 10909(span)(2)(G), (c), Mar. 23, 2010, 124 Stat. 1023; Puspan. L. 111–312, title I, § 101(span)(1), Dec. 17, 2010, 124 Stat. 3298; Puspan. L. 112–240, title I, § 104(c)(2)(H), Jan. 2, 2013, 126 Stat. 2322; Puspan. L. 113–295, div. A, title II, §§ 218(a), 220(a), Dec. 19, 2014, 128 Stat. 4035; Puspan. L. 114–113, div. Q, title I, § 193(a), Dec. 18, 2015, 129 Stat. 3075; Puspan. L. 115–123, div. D, title I, § 40403(a), Fespan. 9, 2018, 132 Stat. 148; Puspan. L. 116–94, div. Q, title I, § 124(a), Dec. 20, 2019, 133 Stat. 3231; Puspan. L. 116–260, div. EE, title I, § 142(a), Dec. 27, 2020, 134 Stat. 3054; Puspan. L. 117–169, title I, § 13401(i)(2), Aug. 16, 2022, 136 Stat. 1961.)
§ 30C. Alternative fuel vehicle refueling property credit
(a) Credit allowed
(b) LimitationThe credit allowed under subsection (a) with respect to any single item of qualified alternative fuel vehicle refueling property placed in service by the taxpayer during the taxable year shall not exceed—
(1) $100,000 in the case of any such item of property of a character subject to an allowance for depreciation, and
(2) $1,000 in any other case.
(c) Qualified alternative fuel vehicle refueling propertyFor purposes of this section—
(1) In generalThe term “qualified alternative fuel vehicle refueling property” has the same meaning as the term “qualified clean-fuel vehicle refueling property” would have under section 179A if—
(A) paragraph (1) of section 179A(d) did not apply to property installed on property which is used as the principal residence (within the meaning of section 121) of the taxpayer, and
(B) only the following were treated as clean-burning fuels for purposes of section 179A(d):
(i) Any fuel at least 85 percent of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquified natural gas, liquefied petroleum gas, or hydrogen.
(ii) Any mixture—(I) which consists of two or more of the following: biodiesel (as defined in section 40A(d)(1)), diesel fuel (as defined in section 4083(a)(3)), or kerosene, and(II) at least 20 percent of the volume of which consists of biodiesel (as so defined) determined without regard to any kerosene in such mixture.
(iii) Electricity.
(2) Bidirectional charging equipmentProperty shall not fail to be treated as qualified alternative fuel vehicle refueling property solely because such property—
(A) is capable of charging the battery of a motor vehicle propelled by electricity, and
(B) allows discharging electricity from such battery to an electric load external to such motor vehicle.
(3) Property required to be located in eligible census tracts
(A) In general
(B) Eligible census tract
(i)For purposes of this paragraph, the term “eligible census tract” means any population census tract which—(I) is described in section 45D(e), or(II) is not an urban area.
(ii) Urban area
(d) Application with other credits
(1) Business credit treated as part of general business credit
(2) Personal creditThe credit allowed under subsection (a) (after the application of paragraph (1)) for any taxable year shall not exceed the excess (if any) of—
(A) the regular tax liability (as defined in section 26(b)) reduced by the sum of the credits allowable under subpart A and section 27, over
(B) the tentative minimum tax for the taxable year.
(e) Special rulesFor purposes of this section—
(1) Reduction in basis
(2) Property used by tax-exempt entity
(3) Property used outside United States not qualified
(4) Election not to take credit
(5) Recapture rules
(6) Reference
(f) Special rule for electric charging stations for certain vehicles with 2 or 3 wheelsFor purposes of this section—
(1) In generalThe term “qualified alternative fuel vehicle refueling property” includes any property described in subsection (c) for the recharging of a motor vehicle described in paragraph (2), but only if such property—
(A) meets the requirements of subsection (a)(2),1
1 So in original. There is no subsec. (a)(2) in this section.
and(B) is of a character subject to depreciation.
(2) Motor vehicleA motor vehicle is described in this paragraph if the motor vehicle—
(A) is manufactured primarily for use on public streets, roads, or highways (not including a vehicle operated exclusively on a rail or rails),
(B) has 2 or 3 wheels, and
(C) is propelled by electricity.
(g) Wage and apprenticeship requirements
(1) Increased credit amount
(A) In general
(B) Qualified alternative fuel vehicle refueling project
(C) Project requirementsA project meets the requirements of this subparagraph if it is one of the following:
(i) A project the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (2)(A) and (3).
(ii) A project which satisfies the requirements of paragraphs (2)(A) and (3).
(2) Prevailing wage requirements
(A) In general
(B) Correction and penalty related to failure to satisfy wage requirements
(3) Apprenticeship requirements
(4) Regulations and guidance
(h) Regulations
(i) Termination
(Added Pub. L. 109–58, title XIII, § 1342(a), Aug. 8, 2005, 119 Stat. 1049; amended Pub. L. 109–135, title IV, §§ 402(k), 412(d), Dec. 21, 2005, 119 Stat. 2615, 2636; Pub. L. 110–172, § 6(b), Dec. 29, 2007, 121 Stat. 2479; Pub. L. 110–343, div. B, title II, § 207(a), (b), Oct. 3, 2008, 122 Stat. 3839; Pub. L. 111–5, div. B, title I, §§ 1123(a), 1142(b)(3), 1144(b)(2), Feb. 17, 2009, 123 Stat. 325, 331, 332; Pub. L. 111–312, title VII, § 711(a), Dec. 17, 2010, 124 Stat. 3315; Pub. L. 112–240, title IV, § 402(a), Jan. 2, 2013, 126 Stat. 2337; Pub. L. 113–295, div. A, title I, § 161(a), title II, §§ 218(b), 221(a)(34)(B), Dec. 19, 2014, 128 Stat. 4023, 4035, 4042; Pub. L. 114–113, div. Q, title I, § 182(a), Dec. 18, 2015, 129 Stat. 3072; Pub. L. 115–123, div. D, title I, § 40404(a), Feb. 9, 2018, 132 Stat. 148; Pub. L. 115–141, div. U, title IV, § 401(b)(3), Mar. 23, 2018, 132 Stat. 1201; Pub. L. 116–94, div. Q, title I, § 125(a), Dec. 20, 2019, 133 Stat. 3231; Pub. L. 116–260, div. EE, title I, § 143(a), Dec. 27, 2020, 134 Stat. 3054; Pub. L. 117–169, title I, §§ 13404(a)–(e), 13704(b)(2), Aug. 16, 2022, 136 Stat. 1966–1968, 2002.)
§ 30D. Clean vehicle credit
(a) Allowance of credit
(b) Per vehicle dollar limitation
(1) In general
(2) Critical minerals
(3) Battery components
(c) Application with other credits
(1) Business credit treated as part of general business credit
(2) Personal credit
(d) New clean vehicleFor purposes of this section—
(1) In generalThe term “new clean vehicle” means a motor vehicle—
(A) the original use of which commences with the taxpayer,
(B) which is acquired for use or lease by the taxpayer and not for resale,
(C) which is made by a qualified manufacturer,
(D) which is treated as a motor vehicle for purposes of title II of the Clean Air Act,
(E) which has a gross vehicle weight rating of less than 14,000 pounds,
(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which—
(i) has a capacity of not less than 7 kilowatt hours, and
(ii) is capable of being recharged from an external source of electricity,
(G) the final assembly of which occurs within North America, and
(H) for which the person who sells any vehicle to the taxpayer furnishes a report to the taxpayer and to the Secretary, at such time and in such manner as the Secretary shall provide, containing—
(i) the name and taxpayer identification number of the taxpayer,
(ii) the vehicle identification number of the vehicle, unless, in accordance with any applicable rules promulgated by the Secretary of Transportation, the vehicle is not assigned such a number,
(iii) the battery capacity of the vehicle,
(iv) verification that original use of the vehicle commences with the taxpayer,
(v) the maximum credit under this section allowable to the taxpayer with respect to the vehicle, and
(vi) in the case of a taxpayer who makes an election under subsection (g)(1), any amount described in subsection (g)(2)(C) which has been provided to such taxpayer.
(2) Motor vehicle
(3) Qualified manufacturer
(4) Battery capacity
(5) Final assembly
(6) New qualified fuel cell motor vehicle
(7) Excluded entitiesFor purposes of this section, the term “new clean vehicle” shall not include—
(A) any vehicle placed in service after December 31, 2024, with respect to which any of the applicable critical minerals contained in the battery of such vehicle (as described in subsection (e)(1)(A)) were extracted, processed, or recycled by a foreign entity of concern (as defined in section 40207(a)(5) of the Infrastructure Investment and Jobs Act (42 U.S.C. 18741(a)(5))), or
(B) any vehicle placed in service after December 31, 2023, with respect to which any of the components contained in the battery of such vehicle (as described in subsection (e)(2)(A)) were manufactured or assembled by a foreign entity of concern (as so defined).
(e) Critical mineral and battery component requirements
(1) Critical minerals requirement
(A) In generalThe requirement described in this subparagraph with respect to a vehicle is that, with respect to the battery from which the electric motor of such vehicle draws electricity, the percentage of the value of the applicable critical minerals (as defined in section 45X(c)(6)) contained in such battery that were—
(i) extracted or processed—(I) in the United States, or(II) in any country with which the United States has a free trade agreement in effect, or
(ii) recycled in North America,
is equal to or greater than the applicable percentage (as certified by the qualified manufacturer, in such form or manner as prescribed by the Secretary).
(B) Applicable percentageFor purposes of subparagraph (A), the applicable percentage shall be—
(i) in the case of a vehicle placed in service after the date on which the proposed guidance described in paragraph (3)(B) is issued by the Secretary and before January 1, 2024, 40 percent,
(ii) in the case of a vehicle placed in service during calendar year 2024, 50 percent,
(iii) in the case of a vehicle placed in service during calendar year 2025, 60 percent,
(iv) in the case of a vehicle placed in service during calendar year 2026, 70 percent, and
(v) in the case of a vehicle placed in service after December 31, 2026, 80 percent.
(2) Battery components
(A) In general
(B) Applicable percentageFor purposes of subparagraph (A), the applicable percentage shall be—
(i) in the case of a vehicle placed in service after the date on which the proposed guidance described in paragraph (3)(B) is issued by the Secretary and before January 1, 2024, 50 percent,
(ii) in the case of a vehicle placed in service during calendar year 2024 or 2025, 60 percent,
(iii) in the case of a vehicle placed in service during calendar year 2026, 70 percent,
(iv) in the case of a vehicle placed in service during calendar year 2027, 80 percent,
(v) in the case of a vehicle placed in service during calendar year 2028, 90 percent,
(vi) in the case of a vehicle placed in service after December 31, 2028, 100 percent.
(3) Regulations and guidance
(A) In general
(B) Deadline for proposed guidance
(f) Special rules
(1) Basis reduction
(2) No double benefit
[(3) Repealed. Pub. L. 117–169, title I, § 13401(g)(2)(B)(i), Aug. 16, 2022, 136 Stat. 1960]
(4) Property used outside United States not qualified
(5) Recapture
(6) Election not to take credit
(7) Interaction with air quality and motor vehicle safety standardsA vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with—
(A) the applicable provisions of the Clean Air Act for the applicable make and model year of the vehicle (or applicable air quality provisions of State law in the case of a State which has adopted such provision under a waiver under section 209(b) of the Clean Air Act), and
(B) the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code.
(8) One credit per vehicle
(9) VIN requirement
(10) Limitation based on modified adjusted gross income
(A) In generalNo credit shall be allowed under subsection (a) for any taxable year if—
(i) the lesser of—(I) the modified adjusted gross income of the taxpayer for such taxable year, or(II) the modified adjusted gross income of the taxpayer for the preceding taxable year, exceeds
(ii) the threshold amount.
(B) Threshold amountFor purposes of subparagraph (A)(ii), the threshold amount shall be—
(i) in the case of a joint return or a surviving spouse (as defined in section 2(a)), $300,000,
(ii) in the case of a head of household (as defined in section 2(b)), $225,000, and
(iii) in the case of a taxpayer not described in clause (i) or (ii), $150,000.
(C) Modified adjusted gross income
(11) Manufacturer’s suggested retail price limitation
(A) In general
(B) Applicable limitationFor purposes of subparagraph (A), the applicable limitation for each vehicle classification is as follows:
(i) Vans
(ii) Sport utility vehicles
(iii) Pickup trucks
(iv) Other
(C) Regulations and guidance
(g) Transfer of credit
(1) In general
(2) Eligible entityFor purposes of this subsection, the term “eligible entity” means, with respect to the vehicle for which the credit is allowed under subsection (a), the dealer which sold such vehicle to the taxpayer and has—
(A) subject to paragraph (4), registered with the Secretary for purposes of this paragraph, at such time, and in such form and manner, as the Secretary may prescribe,
(B) prior to the election described in paragraph (1) and not later than at the time of such sale, disclosed to the taxpayer purchasing such vehicle—
(i) the manufacturer’s suggested retail price,
(ii) the value of the credit allowed and any other incentive available for the purchase of such vehicle, and
(iii) the amount provided by the dealer to such taxpayer as a condition of the election described in paragraph (1),
(C) not later than at the time of such sale, made payment to such taxpayer (whether in cash or in the form of a partial payment or down payment for the purchase of such vehicle) in an amount equal to the credit otherwise allowable to such taxpayer, and
(D) with respect to any incentive otherwise available for the purchase of a vehicle for which a credit is allowed under this section, including any incentive in the form of a rebate or discount provided by the dealer or manufacturer, ensured that—
(i) the availability or use of such incentive shall not limit the ability of a taxpayer to make an election described in paragraph (1), and
(ii) such election shall not limit the value or use of such incentive.
(3) Timing
(4) Revocation of registration
(5) Tax treatment of paymentsWith respect to any payment described in paragraph (2)(C), such payment—
(A) shall not be includible in the gross income of the taxpayer, and
(B) with respect to the dealer, shall not be deductible under this title.
(6) Application of certain other requirementsIn the case of any election under paragraph (1) with respect to any vehicle—
(A) the requirements of paragraphs (1) and (2) of subsection (f) shall apply to the taxpayer who acquired the vehicle in the same manner as if the credit determined under this section with respect to such vehicle were allowed to such taxpayer,
(B) paragraph (6) of such subsection shall not apply, and
(C) the requirement of paragraph (9) of such subsection (f) shall be treated as satisfied if the eligible entity provides the vehicle identification number of such vehicle to the Secretary in such manner as the Secretary may provide.
(7) Advance payment to registered dealers
(A) In general
(B) Excessive payments
(C) Treatment of advance payments
(8) Dealer
(9) Indian tribal government
(10) Recapture
(h) Termination
(Added Pub. L. 110–343, div. B, title II, § 205(a), Oct. 3, 2008, 122 Stat. 3835; amended Pub. L. 111–5, div. B, title I, § 1141(a), Feb. 17, 2009, 123 Stat. 326; Pub. L. 111–148, title X, § 10909(b)(2)(H), (c), Mar. 23, 2010, 124 Stat. 1023; Pub. L. 111–312, title I, § 101(b)(1), Dec. 17, 2010, 124 Stat. 3298; Pub. L. 112–240, title I, § 104(c)(2)(I), title IV, § 403(a), (b), Jan. 2, 2013, 126 Stat. 2322, 2337, 2338; Pub. L. 113–295, div. A, title II, § 209(e), Dec. 19, 2014, 128 Stat. 4028; Pub. L. 114–113, div. Q, title I, § 183(a), Dec. 18, 2015, 129 Stat. 3072; Pub. L. 115–123, div. D, title I, § 40405(a), Feb. 9, 2018, 132 Stat. 148; Pub. L. 116–94, div. Q, title I, § 126(a), Dec. 20, 2019, 133 Stat. 3231; Pub. L. 116–260, div. EE, title I, § 144(a), Dec. 27, 2020, 134 Stat. 3054; Pub. L. 117–169, title I, § 13401(a)–(i)(1), Aug. 16, 2022, 136 Stat. 1954–1961.)