The Internal Revenue Service updated FAQs in Fact Sheet 2024-14 to provide guidance related to the New, Previously Owned and Qualified Commercial Clean Vehicle Credits.
The Inflation Reduction Act of 2022 (IRA) made several changes to the tax credit provided in §30D of the Internal Revenue Code for qualified plug-in electric drive motor vehicles, including adding fuel cell vehicles to the §30D tax credit (New Clean Vehicle Credit). The IRA also added new credits for previously owned clean vehicles under §25E of the Code (Previously Owned Clean Vehicle Credit) and for commercial clean vehicles under §45W of the Code (Qualified Commercial Clean Vehicles Credit).
These FAQs provide details on how the IRA revises the credit available for new clean vehicles for individuals and businesses, as well as information on the credit available for previously owned clean vehicles for individuals and the new credit for qualified commercial clean vehicles.
- Topic A: Eligibility rules for the New Clean Vehicle Credit
- Topic B: Income and price limitations for the New Clean Vehicle Credit
- Topic C: When the new requirements apply to the New Clean Vehicle Credit
- Topic D: Eligibility rules for the Previously Owned Clean Vehicles Credit
- Topic E: Income and price limitations previously owned clean vehicles
- Topic F: Claiming the Previously Owned Clean Vehicles Credit
- Topic G: Qualified Commercial Clean Vehicles Credit
- Topic H: Transfer of New Clean Vehicle Credit and Previously Owned Clean Vehicle Credit
- Topic I: Registering a dealer/seller for seller reporting and Clean Vehicle Tax Credit transfers
- Topic J: Seller report information for buyers of New and Previously Owned Clean Vehicle Tax Credits beginning in 2024
The FAQs revisions are as follows:
- Topic A: Eligibility rules for the New Clean Vehicle Credit: updated question 10,
- Topic B: Income and price limitations for the New Clean Vehicle Credit: updated question 11
- Topic H: Transfer of New Clean Vehicle Credit and Previously Owned Clean Vehicle Credit: updated questions 5 and 15
These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. Accordingly, these FAQs may not address a taxpayer’s specific facts and circumstances, and they may be updated or modified upon further review. Because these FAQs have not been published in the Internal Revenue Bulletin, they will not be relied on or used by the IRS to resolve a case. Similarly, if an FAQ turns out to be an inaccurate statement of the law as applied to a particular taxpayer’s case, the law will control the taxpayer’s tax liability. Nonetheless, a taxpayer who reasonably and in good faith relies on these FAQs will not be subject to a penalty that provides a reasonable cause standard for relief, including a negligence penalty or other accuracy-related penalty, to the extent that reliance results in an underpayment of tax. Any later updates or modifications to these FAQs will be dated to enable taxpayers to confirm the date on which any changes to the FAQs were made.
Additionally, prior versions of these FAQs will be maintained on IRS.gov to ensure that taxpayers who may have relied on a prior version can locate that version if they later need to do so.