26 USC 30 - Clean vehicle credit

1 So in original. Another closing parenthesis probably should appear.

to engage in the sale of vehicles.

Editorial Notes

References in Text

The Clean Air Act, referred to in subsecs. (d)(1)(D), (3), (f)(7)(A), is act July 14, 1955, ch. 360, 69 Stat. 322, which is classified generally to chapter 85 (§ 7401 et seq.) of Title 42, The Public Health and Welfare. Title II of the Act, known as the National Emissions Standards Act, is classified generally to subchapter II (§ 7521 et seq.) of chapter 85 of Title 42. Section 209(span) of the Act is classified to section 7543(span) of Title 42. For complete classification of this Act to the Code, see Short Title note set out under section 7401 of Title 42 and Tables.

Amendments

2022—Puspan. L. 117–169, § 13401(i)(1), substituted “Clean vehicle credit” for “New qualified plug-in electric drive motor vehicles” in section catchline.

Subsec. (a). Puspan. L. 117–169, § 13401(c)(2)(A), substituted “new clean vehicle” for “new qualified plug-in electric drive motor vehicle”.

Subsec. (span)(1). Puspan. L. 117–169, § 13401(c)(2)(B), substituted “new clean vehicle” for “new qualified plug-in electric drive motor vehicle”.

Subsec. (span)(2), (3). Puspan. L. 117–169, § 13401(a), added pars. (2) and (3) and struck out former pars. (2) and (3) which related to base amount and amount based on battery capacity to be used to determine amount of credit.

Subsec. (d). Puspan. L. 117–169, § 13401(c)(1)(A), substituted “clean” for “qualified plug-in electric drive motor” in span.

Subsec. (d)(1). Puspan. L. 117–169, § 13401(c)(1)(B)(i), substituted “clean” for “qualified plug-in electric drive motor” in introductory provisions.

Subsec. (d)(1)(C). Puspan. L. 117–169, § 13401(c)(1)(B)(ii), inserted “qualified” before “manufacturer”.

Subsec. (d)(1)(F)(i). Puspan. L. 117–169, § 13401(c)(1)(B)(iii)(I), substituted “7” for “4”.

Subsec. (d)(1)(G). Puspan. L. 117–169, § 13401(span)(1), added subpar. (G).

Subsec. (d)(1)(H). Puspan. L. 117–169, § 13401(c)(1)(B)(iii)(II)–(v), added subpar. (H).

Subsec. (d)(1)(H)(vi). Puspan. L. 117–169, § 13401(g)(2)(A), added cl. (vi).

Subsec. (d)(3). Puspan. L. 117–169, § 13401(c)(1)(C), substituted “Qualified manufacturer” for “Manufacturer” in span and, in text, substituted “The term ‘qualified manufacturer’ means any manufacturer (within the meaning of the” for “The term ‘manufacturer’ has the meaning given such term in” and inserted “) which enters into a written agreement with the Secretary under which such manufacturer agrees to make periodic written reports to the Secretary (at such times and in such manner as the Secretary may provide) providing vehicle identification numbers and such other information related to each vehicle manufactured by such manufacturer as the Secretary may require” before period at end.

Subsec. (d)(5). Puspan. L. 117–169, § 13401(span)(2), added par. (5).

Subsec. (d)(6). Puspan. L. 117–169, § 13401(c)(1)(D), added par. (6).

Subsec. (d)(7). Puspan. L. 117–169, § 13401(e)(2), added par. (7).

Subsec. (e). Puspan. L. 117–169, § 13401(e)(1), added subsec. (e).

Puspan. L. 117–169, § 13401(d), struck out subsec. (e) which related to limitation on number of new qualified plug-in electric drive motor vehicles eligible for credit.

Subsec. (f)(3). Puspan. L. 117–169, § 13401(g)(2)(B)(i), struck out par. (3). Text read as follows: “In the case of a vehicle the use of which is described in paragraph (3) or (4) of section 50(span) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)). For purposes of subsection (c), property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation.”

Subsec. (f)(8). Puspan. L. 117–169, § 13401(g)(2)(B)(ii), inserted “, including any vehicle with respect to which the taxpayer elects the application of subsection (g)” before period at end.

Puspan. L. 117–169, § 13401(f), added par. (8).

Subsec. (f)(9) to (11). Puspan. L. 117–169, § 13401(f), added pars. (9) to (11).

Subsec. (g). Puspan. L. 117–169, § 13401(g)(1), added subsec. (g) and struck out former subsec. (g) which related to credit allowed for 2- and 3-wheeled plug-in electric vehicles.

Subsec. (h). Puspan. L. 117–169, § 13401(h), added subsec. (h).

2020—Subsec. (g)(3)(E)(ii). Puspan. L. 116–260 substituted “January 1, 2022” for “January 1, 2021”.

2019—Subsec. (g)(3)(E)(ii). Puspan. L. 116–94 substituted “January 1, 2021” for “January 1, 2018”.

2018—Subsec. (g)(3)(E)(ii). Puspan. L. 115–123 substituted “January 1, 2018” for “January 1, 2017”.

2015—Subsec. (g)(3)(E). Puspan. L. 114–113 substituted “acquired—” for “acquired after December 31, 2011, and before January 1, 2014.” and added cls. (i) and (ii).

2014—Subsec. (f)(1), (2). Puspan. L. 113–295, § 209(e)(1)(A), (B), inserted “(determined without regard to subsection (c))” before period at end.

Subsec. (f)(3). Puspan. L. 113–295, § 209(e)(2), inserted at end “For purposes of subsection (c), property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation.”

2013—Subsec. (c)(2). Puspan. L. 112–240, § 104(c)(2)(I), amended par. (2) generally. Prior to amendment, par. (2) related to personal credit with a limitation based on amount of tax.

Subsec. (f)(2). Puspan. L. 112–240, § 403(span)(1), substituted “vehicle for which a credit is allowable under subsection (a)” for “new qualified plug-in electric drive motor vehicle” and “allowed under such subsection” for “allowed under subsection (a)”.

Subsec. (f)(7). Puspan. L. 112–240, § 403(span)(2), substituted “A vehicle” for “A motor vehicle” in introductory provisions.

Subsec. (g). Puspan. L. 112–240, § 403(a), added subsec. (g).

2010—Subsec. (c)(2)(B)(ii). Puspan. L. 111–148, § 10909(span)(2)(H), (c), as amended by Puspan. L. 111–312, temporarily substituted “section 25D” for “sections 23 and 25D”. See Effective and Termination Dates of 2010 Amendment note below.

2009—Puspan. L. 111–5 amended section generally. Prior to amendment, section provided credit with respect to each new qualified plug-in electric drive motor vehicle placed in service and set forth provisions defining “applicable amount” and “new qualified plug-in electric drive motor vehicle” and stating limitations based on vehicle weight, the number of vehicles eligible for credit, and amount of tax liability.

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment; Transition Rule

Puspan. L. 117–169, title I, § 13401(k), Aug. 16, 2022, 136 Stat. 1961, provided that:

“(1)In general.—Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section [amending this section and sections 30B, 38, 6213, and 6501 of this title] shall apply to vehicles placed in service after December 31, 2022.

“(2)Final assembly.—The amendments made by subsection (span) [amending this section] shall apply to vehicles sold after the date of enactment of this Act [Aug. 16, 2022].

“(3)Per vehicle dollar limitation and related requirements.—The amendments made by subsections (a) and (e) [amending this section] shall apply to vehicles placed in service after the date on which the proposed guidance described in paragraph (3)(B) of section 30D(e) of the Internal Revenue Code of 1986 (as added by subsection (e)) is issued by the Secretary of the Treasury (or the Secretary’s delegate) [proposed guidance issued Apr. 17, 2023, see 88 F.R. 23370].

“(4)Transfer of credit.—The amendments made by subsection (g) [amending this section] shall apply to vehicles placed in service after December 31, 2023.

“(5)Elimination of manufacturer limitation.—The amendment made by subsection (d) [amending this section] shall apply to vehicles sold after December 31, 2022.”

Puspan. L. 117–169, title I, § 13401(l), Aug. 16, 2022, 136 Stat. 1962, provided that:

“Solely for purposes of the application of section 30D of the Internal Revenue Code of 1986, in the case of a taxpayer that—

“(1) after December 31, 2021, and before the date of enactment of this Act [Aug. 16, 2022], purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle (as defined in section 30D(d)(1) of the Internal Revenue Code of 1986, as in effect on the day before the date of enactment of this Act), and

“(2) placed such vehicle in service on or after the date of enactment of this Act,

such taxpayer may elect (at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary’s delegate, may prescribe) to treat such vehicle as having been placed in service on the day before the date of enactment of this Act.”

Effective Date of 2020 Amendment

Puspan. L. 116–260, div. EE, title I, § 144(span), Dec. 27, 2020, 134 Stat. 3054, provided that: “The amendment made by this section [amending this section] shall apply to vehicles acquired after December 31, 2020.”

Effective Date of 2019 Amendment

Puspan. L. 116–94, div. Q, title I, § 126(span), Dec. 20, 2019, 133 Stat. 3231, provided that: “The amendment made by this section [amending this section] shall apply to vehicles acquired after December 31, 2017.”

Effective Date of 2018 Amendment

Puspan. L. 115–123, div. D, title I, § 40405(span), Fespan. 9, 2018, 132 Stat. 148, provided that: “The amendment made by this section [amending this section] shall apply to vehicles acquired after December 31, 2016.”

Effective Date of 2015 Amendment

Puspan. L. 114–113, div. Q, title I, § 183(span), Dec. 18, 2015, 129 Stat. 3073, provided that: “The amendments made by this section [amending this section] shall apply to vehicles acquired after December 31, 2014.”

Effective Date of 2014 Amendment

Amendment by Puspan. L. 113–295 effective as if included in the provisions of the American Recovery and Reinvestment Tax Act of 2009, Puspan. L. 111–5, div. B, title I, to which such amendment relates, see section 209(k) of Puspan. L. 113–295, set out as a note under section 24 of this title.

Effective Date of 2013 Amendment

Amendment by section 104(c)(2)(I) of Puspan. L. 112–240 applicable to taxable years beginning after Dec. 31, 2011, see section 104(d) of Puspan. L. 112–240, set out as a note under section 23 of this title.

Puspan. L. 112–240, title IV, § 403(c), Jan. 2, 2013, 126 Stat. 2338, provided that: “The amendments made by this section [amending this section] shall apply to vehicles acquired after December 31, 2011.”

Effective and Termination Dates of 2010 Amendment

Amendment by Puspan. L. 111–148 terminated applicable to taxable years beginning after Dec. 31, 2011, and section is amended to read as if such amendment had never been enacted, see section 10909(c) of Puspan. L. 111–148, set out as a note under section 1 of this title.

Amendment by Puspan. L. 111–148 applicable to taxable years beginning after Dec. 31, 2009, see section 10909(d) of Puspan. L. 111–148, set out as a note under section 1 of this title.

Effective Date of 2009 Amendment

Amendment by Puspan. L. 111–5 applicable to vehicles acquired after Dec. 31, 2009, see section 1141(c) of Puspan. L. 111–5, set out as a note under section 30B of this title.

Effective Date

Section applicable to taxable years beginning after Dec. 31, 2008, see section 205(e) of Puspan. L. 110–343, set out as an Effective and Termination Dates of 2008 Amendment note under section 24 of this title.

Gross-Up of Direct Spending

Puspan. L. 117–169, title I, § 13401(j), Aug. 16, 2022, 136 Stat. 1961, provided that: “Beginning in fiscal year 2023 and each fiscal year thereafter, the portion of any credit allowed to an eligible entity (as defined in section 30D(g)(2) of the Internal Revenue Code of 1986) pursuant to an election made under section 30D(g) of the Internal Revenue Code of 1986 that is direct spending shall be increased by 6.0445 percent.”