Subpart B—Other Credits
Editorial Notes
Amendments
2022—
2018—
2014—
2009—
2008—
2005—
1997—
1996—
1992—
1986—
1984—
§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
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2018—
1984—
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1976 Amendment
"(1) Except as provided by paragraph (2), the amendments made by this section [enacting
"(2) The amendment made by subsection (d)(2) [amending
Savings Provision
For provisions that nothing in amendment by
1 So in original. Probably should be followed by a period.
[§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 Repealed.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 ]
Section, added
A prior section 30 was renumbered
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of
[§30A. Repealed. Pub. L. 115–141, div. U, title IV, §401(d)(1)(B), Mar. 23, 2018, 132 Stat. 1206 ]
Section, added
Statutory Notes and Related Subsidiaries
Savings Provision
For provisions that nothing in repeal by
American Samoa Economic Development Credit
"(a)
"(1) in the case of a taxable year beginning before January 1, 2012, such corporation—
"(A) is an existing credit claimant with respect to American Samoa, and
"(B) elected the application of [former] section 936 of the Internal Revenue Code of 1986 for its last taxable year beginning before January 1, 2006, and
"(2) in the case of a taxable year beginning after December 31, 2011, such corporation meets the requirements of subsection (e).
"(b)
"(1)
"(2)
"(3)
"(c)
"(d)
"(1) in the case of a corporation that meets the requirements of subparagraphs (A) and (B) of subsection (a)(1), to the first 16 taxable years of such corporation which begin after December 31, 2006, and before January 1, 2022, and
"(2) in the case of a corporation that does not meet the requirements of subparagraphs (A) and (B) of subsection (a)(1), to the first 10 taxable years of such corporation which begin after December 31, 2011, and before January 1, 2022.
In the case of a corporation described in subsection (a)(2), the Internal Revenue Code of 1986 shall be applied and administered without regard to the amendments made by section 401(d)(1) of the Tax Technical Corrections Act of 2018 [div. U of
"(e)
[
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§30B. Alternative motor vehicle credit
(a) Allowance of credit
There 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 (b),
(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).
(b) New qualified fuel cell motor vehicle credit
(1) In general
For 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 general
The 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 economy
For 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:
| If vehicle inertia weight class is: | The 2002 model year city fuel economy is: |
|---|---|
| 1,500 or 1,750 lbs | 45.2 mpg |
| 2,000 lbs | 39.6 mpg |
| 2,250 lbs | 35.2 mpg |
| 2,500 lbs | 31.7 mpg |
| 2,750 lbs | 28.8 mpg |
| 3,000 lbs | 26.4 mpg |
| 3,500 lbs | 22.6 mpg |
| 4,000 lbs | 19.8 mpg |
| 4,500 lbs | 17.6 mpg |
| 5,000 lbs | 15.9 mpg |
| 5,500 lbs | 14.4 mpg |
| 6,000 lbs | 13.2 mpg |
| 6,500 lbs | 12.2 mpg |
| 7,000 to 8,500 lbs | 11.3 mpg. |
(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
For purposes of subparagraph (B), the term "vehicle inertia weight class" has the same meaning as when defined in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (
(3) New qualified fuel cell motor vehicle
For 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
For purposes of subsection (a), the new advanced lean burn technology motor vehicle credit determined under this subsection for the taxable year is the credit amount determined under paragraph (2) with respect to a new advanced lean burn technology motor vehicle placed in service by the taxpayer during the taxable year.
(2) Credit amount
(A) Fuel economy
(i) In general
The credit amount determined under this paragraph shall be determined in accordance with the following table:
| In the case of a vehicle which achieves a fuel economy (expressed as a percentage of the 2002 model year city fuel economy) of— | The credit amount is— |
|---|---|
| At least 125 percent but less than 150 percent | $400 |
| At least 150 percent but less than 175 percent | $800 |
| At least 175 percent but less than 200 percent | $1,200 |
| At least 200 percent but less than 225 percent | $1,600 |
| At least 225 percent but less than 250 percent | $2,000 |
| At least 250 percent | $2,400. |
(ii) 2002 model year city fuel economy
For purposes of clause (i), the 2002 model year city fuel economy with respect to a vehicle shall be determined on a gasoline gallon equivalent basis as determined by the Administrator of the Environmental Protection Agency using the tables provided in subsection (b)(2)(B) with respect to such vehicle.
(B) Conservation credit
The amount determined under subparagraph (A) with respect to a new advanced lean burn technology motor vehicle shall be increased by the conservation credit amount determined in accordance with the following table:
| In the case of a vehicle which achieves a lifetime fuel savings (expressed in gallons of gasoline) of— | The conservation credit amount is— |
|---|---|
| At least 1,200 but less than 1,800 | $250 |
| At least 1,800 but less than 2,400 | $500 |
| At least 2,400 but less than 3,000 | $750 |
| At least 3,000 | $1,000. |
(3) New advanced lean burn technology motor vehicle
For 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 savings
For 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
For purposes of subsection (a), the new qualified hybrid motor vehicle credit determined under this subsection for the taxable year is the credit amount determined under paragraph (2) with respect to a new qualified hybrid motor vehicle placed in service by the taxpayer during the taxable year.
(2) Credit amount
(A) Credit amount for passenger automobiles and light trucks
In 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
The amount determined under this clause is the amount which would be determined under subsection (c)(2)(A) if such vehicle were a vehicle referred to in such subsection.
(ii) Conservation credit
The amount determined under this clause is the amount which would be determined under subsection (c)(2)(B) if such vehicle were a vehicle referred to in such subsection.
(B) Credit amount for other motor vehicles
(i) In general
In the case of any new qualified hybrid motor vehicle to which subparagraph (A) does not apply, the amount determined under this paragraph is the amount equal to the applicable percentage of the qualified incremental hybrid cost of the vehicle as certified under clause (v).
(ii) Applicable percentage
For 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 cost
For 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,
(II) $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
For purposes of this subparagraph, the term "comparable vehicle" means, with respect to any new qualified hybrid motor vehicle, any vehicle which is powered solely by a gasoline or diesel internal combustion engine and which is comparable in weight, size, and use to such vehicle.
(v) Certification
A certification described in clause (i) shall be made by the manufacturer and shall be determined in accordance with guidance prescribed by the Secretary. Such guidance shall specify procedures and methods for calculating fuel economy savings and incremental hybrid costs.
(3) New qualified hybrid motor vehicle
For purposes of this subsection—
(A) In general
The 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
For purposes of subparagraph (A)(i)(I), the term "consumable fuel" means any solid, liquid, or gaseous matter which releases energy when consumed by an auxiliary power unit.
(C) Maximum available power
(i) Certain passenger automobiles and light trucks
In the case of a vehicle to which paragraph (2)(A) applies, the term "maximum available power" means the maximum power available from the rechargeable energy storage system, during a standard 10 second pulse power or equivalent test, divided by such maximum power and the SAE net power of the heat engine.
(ii) Other motor vehicles
In the case of a vehicle to which paragraph (2)(B) applies, the term "maximum available power" means the maximum power available from the rechargeable energy storage system, during a standard 10 second pulse power or equivalent test, divided by the vehicle's total traction power. For purposes of the preceding sentence, the term "total traction power" means the sum of the peak power from the rechargeable energy storage system and the heat engine peak power of the vehicle, except that if such storage system is the sole means by which the vehicle can be driven, the total traction power is the peak power of such storage system.
(D) Exclusion of plug-in vehicles
Any vehicle with respect to which a credit is allowable under section 30D (determined without regard to subsection (c) thereof) shall not be taken into account under this section.
(e) New qualified alternative fuel motor vehicle credit
(1) Allowance of credit
Except as provided in paragraph (5), the new qualified alternative fuel motor vehicle credit determined under this subsection is an amount equal to the applicable percentage of the incremental cost of any new qualified alternative fuel motor vehicle placed in service by the taxpayer during the taxable year.
(2) Applicable percentage
For 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(b) 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 cost
For 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 vehicle
For purposes of this subsection—
(A) In general
The 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
The term "alternative fuel" means compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, and any liquid at least 85 percent of the volume of which consists of methanol.
(5) Credit for mixed-fuel vehicles
(A) In general
In 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 vehicle
For 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
For purposes of this subsection, the term "75/25 mixed-fuel vehicle" means a mixed-fuel vehicle which operates using at least 75 percent alternative fuel and not more than 25 percent petroleum-based fuel.
(D) 90/10 mixed-fuel vehicle
For purposes of this subsection, the term "90/10 mixed-fuel vehicle" means a mixed-fuel vehicle which operates using at least 90 percent alternative fuel and not more than 10 percent petroleum-based fuel.
(f) Limitation on number of new qualified hybrid and advanced lean-burn technology vehicles eligible for credit
(1) In general
In the case of a qualified vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (c) or (d) shall be allowed.
(2) Phaseout period
For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of qualified vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2005, is at least 60,000.
(3) Applicable percentage
For 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
For purposes of this subsection, all persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single manufacturer.
(B) Inclusion of foreign corporations
For purposes of subparagraph (A), in applying subsections (a) and (b) of section 52 to this section, section 1563 shall be applied without regard to subsection (b)(2)(C) thereof.
(5) Qualified vehicle
For purposes of this subsection, the term "qualified vehicle" means any new qualified hybrid motor vehicle (described in subsection (d)(2)(A)) and any new advanced lean burn technology motor vehicle.
(g) Application with other credits
(1) Business credit treated as part of general business credit
So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).
(2) Personal credit
For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.
(h) Other definitions and special rules
For purposes of this section—
(1) Motor vehicle
The term "motor vehicle" means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels.
(2) City fuel economy
The city fuel economy with respect to any vehicle shall be measured in a manner which is substantially similar to the manner city fuel economy is measured in accordance with procedures under part 600 of subchapter Q of chapter I of title 40, Code of Federal Regulations, as in effect on the date of the enactment of this section.
(3) Other terms
The terms "automobile", "passenger automobile", "medium duty passenger vehicle", "light truck", and "manufacturer" have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (
(4) Reduction in basis
For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed (determined without regard to subsection (g)).
(5) No double benefit
The 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 (b) 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
In the case of a vehicle whose use is described in paragraph (3) or (4) of section 50(b) 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 (g)). For purposes of subsection (g), property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation.
(7) Property used outside United States, etc., not qualified
No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.
(8) Recapture
The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit (including recapture in the case of a lease period of less than the economic life of a vehicle).
(9) Election to not take credit
No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.
(10) Interaction with air quality and motor vehicle safety standards
Unless 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(b) of the Clean Air Act), and
(B) the motor vehicle safety provisions of
[(i) Repealed. Pub. L. 117–169, title I, §13401(i)(2)(B), Aug. 16, 2022, 136 Stat. 1961 ]
(j) Regulations
(1) In general
Except as provided in paragraph (2), the Secretary shall promulgate such regulations as necessary to carry out the provisions of this section.
(2) Coordination in prescription of certain regulations
The Secretary of the Treasury, in coordination with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, shall prescribe such regulations as necessary to determine whether a motor vehicle meets the requirements to be eligible for a credit under this section.
(k) Termination
This 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 (b)), 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
Editorial Notes
References in Text
The Clean Air Act, referred to in text, is act July 14, 1955, ch. 360,
The date of the enactment of this section, referred to in subsecs. (b)(3)(B) and (h)(2), is the date of enactment of
The date of the enactment of the Energy Tax Incentives Act of 2005, referred to in subsec. (e)(2), is the date of enactment of title XIII of
Amendments
2022—Subsec. (h)(8).
Subsec. (i).
2020—Subsec. (k)(1).
2019—Subsec. (k)(1).
2018—Subsec. (k)(1).
2015—Subsec. (k)(1).
2014—Subsec. (h)(5)(B).
Subsec. (h)(8).
2013—Subsec. (g)(2).
2010—Subsec. (g)(2)(B)(ii).
2009—Subsec. (a)(5).
Subsec. (d)(3)(D).
Subsec. (g)(2).
"(A) the regular tax liability (as defined in section 26(b)) reduced by the sum of the credits allowable under subpart A and sections 27 and 30, over
"(B) the tentative minimum tax for the taxable year."
Subsec. (h)(1).
Subsec. (h)(8).
Subsecs. (i) to (k).
2008—Subsec. (d)(3)(D).
2005—Subsec. (g)(2)(A).
Subsec. (h)(6).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 2020 Amendment
Effective Date of 2019 Amendment
Effective Date of 2018 Amendment
Effective Date of 2015 Amendment
Effective Date of 2014 Amendment
Effective Date of 2013 Amendment
Amendment by
Effective and Termination Dates of 2010 Amendment
Amendment by
Amendment by
Effective Date of 2009 Amendment
Amendment by section 1142(b)(2) of
Amendment by section 1144(a) of
Effective Date of 2008 Amendment
Amendment by
Effective Date of 2005 Amendment
Amendment by section 402(j) of
Effective Date
§30C. Alternative fuel vehicle refueling property credit
(a) Credit allowed
There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent (6 percent in the case of property of a character subject to depreciation) of the cost of any qualified alternative fuel vehicle refueling property placed in service by the taxpayer during the taxable year.
(b) Limitation
The 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 property
For purposes of this section—
(1) In general
The 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 equipment
Property 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
Property shall not be treated as qualified alternative fuel vehicle refueling property unless such property is placed in service in an eligible census tract.
(B) Eligible census tract
(i) In general
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
For purposes of clause (i)(II), the term "urban area" means a census tract (as defined by the Bureau of the Census) which, according to the most recent decennial census, has been designated as an urban area by the Secretary of Commerce.
(d) Application with other credits
(1) Business credit treated as part of general business credit
So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).
(2) Personal credit
The 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 rules
For purposes of this section—
(1) Reduction in basis
For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed (determined without regard to subsection (d)).
(2) Property used by tax-exempt entity
In the case of any qualified alternative fuel vehicle refueling property the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such property to the person or entity using such property shall be treated as the taxpayer that placed such property 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 property (determined without regard to subsection (d)). For purposes of subsection (d), property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation.
(3) Property used outside United States not qualified
No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.
(4) Election not to take credit
No credit shall be allowed under subsection (a) for any property if the taxpayer elects not to have this section apply to such property.
(5) Recapture rules
Rules similar to the rules of section 179A(e)(4) shall apply.
(6) Reference
For purposes of this section, any reference to section 179A shall be treated as a reference to such section as in effect immediately before its repeal.
(f) Special rule for electric charging stations for certain vehicles with 2 or 3 wheels
For purposes of this section—
(1) In general
The 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 and
(B) is of a character subject to depreciation.
(2) Motor vehicle
A 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
In the case of any qualified alternative fuel vehicle refueling project which satisfies the requirements of subparagraph (C), the amount of the credit determined under subsection (a) for any qualified alternative fuel vehicle refueling property of a character subject to an allowance for depreciation which is part of such project shall be equal to such amount (determined without regard to this sentence) multiplied by 5.
(B) Qualified alternative fuel vehicle refueling project
For purposes of this subsection, the term "qualified alternative fuel vehicle refueling project" means a project consisting of one or more properties that are part of a single project.
(C) Project requirements
A 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
The requirements described in this subparagraph with respect to any qualified alternative fuel vehicle refueling project are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in the construction of any qualified alternative fuel vehicle refueling property which is part of such project shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such project is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of
(B) Correction and penalty related to failure to satisfy wage requirements
Rules similar to the rules of section 45(b)(7)(B) shall apply.
(3) Apprenticeship requirements
Rules similar to the rules of section 45(b)(8) shall apply.
(4) Regulations and guidance
The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.
(h) Regulations
The Secretary shall prescribe such regulations as necessary to carry out the provisions of this section.
(i) Termination
This section shall not apply to any property placed in service after December 31, 2032.
(Added
Amendment of Subsection (c)(1)(B)
(iv) Any transportation fuel (as defined in section 45Z(d)(5)).
See 2022 Amendment note below.
Editorial Notes
References in Text
Section 179A as in effect immediately before its repeal, referred to in subsec. (e)(6), means
Amendments
2022—Subsec. (a).
Subsec. (b).
Subsec. (b)(1).
Subsec. (c).
Subsec. (c)(1)(B)(iv).
Subsec. (c)(3).
Subsec. (f).
Subsec. (g).
Subsecs. (h), (i).
2020—Subsec. (g).
2019—Subsec. (g).
2018—Subsec. (e)(6), (7).
Subsec. (g).
2015—Subsec. (g).
2014—Subsec. (e)(1).
Subsec. (e)(7).
Subsec. (g).
"(1) in the case of property relating to hydrogen, after December 31, 2014, and
"(2) in the case of any other property, after December 31, 2013."
2013—Subsec. (g)(2).
2010—Subsec. (g)(2).
2009—Subsec. (d)(2)(A).
Subsec. (e)(6).
2008—Subsec. (c)(2)(C).
Subsec. (g)(2).
2007—Subsec. (b).
Subsec. (c).
"(1)
"(A) at least 85 percent of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen, or
"(B) any mixture of biodiesel (as defined in section 40A(d)(1)) and diesel fuel (as defined in section 4083(a)(3)), determined without regard to any use of kerosene and containing at least 20 percent biodiesel.
"(2)
2005—Subsec. (d)(2)(A).
Subsec. (e)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
"(1)
"(2)
Amendment by section 13704(b)(2) of
Effective Date of 2020 Amendment
Effective Date of 2019 Amendment
Effective Date of 2018 Amendment
Effective Date of 2015 Amendment
Effective Date of 2014 Amendment
Amendment by section 218(b) of
Amendment by section 221(a)(34)(B) of
Effective Date of 2013 Amendment
Effective Date of 2010 Amendment
Effective Date of 2009 Amendment
Amendment by section 1142(b)(3) of
Amendment by section 1144(b)(2) of
Effective Date of 2008 Amendment
Effective Date of 2007 Amendment
"(1)
"(2)
"(3)
Effective Date of 2005 Amendment
Amendment by section 402(k) of
Effective Date
Savings Provision
For provisions that nothing in amendment by
1 So in original. There is no subsec. (a)(2) in this section.
§30D. Clean vehicle credit
(a) Allowance of credit
There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each new clean vehicle placed in service by the taxpayer during the taxable year.
(b) Per vehicle dollar limitation
(1) In general
The amount determined under this subsection with respect to any new clean vehicle is the sum of the amounts determined under paragraphs (2) and (3) with respect to such vehicle.
(2) Critical minerals
In the case of a vehicle with respect to which the requirement described in subsection (e)(1)(A) is satisfied, the amount determined under this paragraph is $3,750.
(3) Battery components
In the case of a vehicle with respect to which the requirement described in subsection (e)(2)(A) is satisfied, the amount determined under this paragraph is $3,750.
(c) Application with other credits
(1) Business credit treated as part of general business credit
So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).
(2) Personal credit
For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.
(d) New clean vehicle
For purposes of this section—
(1) In general
The 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
The term "motor vehicle" means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels.
(3) Qualified manufacturer
The term "qualified manufacturer" means any manufacturer (within the meaning of the regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (
(4) Battery capacity
The term "capacity" means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge.
(5) Final assembly
For purposes of paragraph (1)(G), the term "final assembly" means the process by which a manufacturer produces a new clean vehicle at, or through the use of, a plant, factory, or other place from which the vehicle is delivered to a dealer or importer with all component parts necessary for the mechanical operation of the vehicle included with the vehicle, whether or not the component parts are permanently installed in or on the vehicle.
(6) New qualified fuel cell motor vehicle
For purposes of this section, the term "new clean vehicle" shall include any new qualified fuel cell motor vehicle (as defined in section 30B(b)(3)) which meets the requirements under subparagraphs (G) and (H) of paragraph (1).
(7) Excluded entities
For 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 (
(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 general
The 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 percentage
For 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
The 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 components contained in such battery that were manufactured or assembled 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 percentage
For 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
The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.
(B) Deadline for proposed guidance
Not later than December 31, 2022, the Secretary shall issue proposed guidance with respect to the requirements under this subsection.
(f) Special rules
(1) Basis reduction
For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed (determined without regard to subsection (c)).
(2) No double benefit
The amount of any deduction or other credit allowable under this chapter for a vehicle for which a credit is allowable under subsection (a) shall be reduced by the amount of credit allowed under such subsection for such vehicle (determined without regard to subsection (c)).
[(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
No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1).
(5) Recapture
The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.
(6) Election not to take credit
No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.
(7) Interaction with air quality and motor vehicle safety standards
A 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
(8) One credit per vehicle
In the case of any vehicle, the credit described in subsection (a) shall only be allowed once with respect to such vehicle, as determined based upon the vehicle identification number of such vehicle, including any vehicle with respect to which the taxpayer elects the application of subsection (g).
(9) VIN requirement
No credit shall be allowed under this section with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year.
(10) Limitation based on modified adjusted gross income
(A) In general
No 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 amount
For 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
For purposes of this paragraph, the term "modified adjusted gross income" means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.
(11) Manufacturer's suggested retail price limitation
(A) In general
No credit shall be allowed under subsection (a) for a vehicle with a manufacturer's suggested retail price in excess of the applicable limitation.
(B) Applicable limitation
For purposes of subparagraph (A), the applicable limitation for each vehicle classification is as follows:
(i) Vans
In the case of a van, $80,000.
(ii) Sport utility vehicles
In the case of a sport utility vehicle, $80,000.
(iii) Pickup trucks
In the case of a pickup truck, $80,000.
(iv) Other
In the case of any other vehicle, $55,000.
(C) Regulations and guidance
For purposes of this paragraph, the Secretary shall prescribe such regulations or other guidance as the Secretary determines necessary for determining vehicle classifications using criteria similar to that employed by the Environmental Protection Agency and the Department of the Energy to determine size and class of vehicles.
(g) Transfer of credit
(1) In general
Subject to such regulations or other guidance as the Secretary determines necessary, if the taxpayer who acquires a new clean vehicle elects the application of this subsection with respect to such vehicle, the credit which would (but for this subsection) be allowed to such taxpayer with respect to such vehicle shall be allowed to the eligible entity specified in such election (and not to such taxpayer).
(2) Eligible entity
For 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
An election described in paragraph (1) shall be made by the taxpayer not later than the date on which the vehicle for which the credit is allowed under subsection (a) is purchased.
(4) Revocation of registration
Upon determination by the Secretary that a dealer has failed to comply with the requirements described in paragraph (2), the Secretary may revoke the registration (as described in subparagraph (A) of such paragraph) of such dealer.
(5) Tax treatment of payments
With 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 requirements
In 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
The Secretary shall establish a program to make advance payments to any eligible entity in an amount equal to the cumulative amount of the credits allowed under subsection (a) with respect to any vehicles sold by such entity for which an election described in paragraph (1) has been made.
(B) Excessive payments
Rules similar to the rules of section 6417(d)(6) shall apply for purposes of this paragraph.
(C) Treatment of advance payments
For purposes of
(8) Dealer
For purposes of this subsection, the term "dealer" means a person licensed by a State, the District of Columbia, the Commonwealth of Puerto Rico, any other territory or possession of the United States, an Indian tribal government, or any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (
(9) Indian tribal government
For purposes of this subsection, the term "Indian tribal government" means the recognized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the list published most recently as of the date of enactment of this subsection pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 (
(10) Recapture
In the case of any taxpayer who has made an election described in paragraph (1) with respect to a new clean vehicle and received a payment described in paragraph (2)(C) from an eligible entity, if the credit under subsection (a) would otherwise (but for this subsection) not be allowable to such taxpayer pursuant to the application of subsection (f)(10), the tax imposed on such taxpayer under this chapter for the taxable year in which such vehicle was placed in service shall be increased by the amount of the payment received by such taxpayer.
(h) Termination
No credit shall be allowed under this section with respect to any vehicle placed in service after December 31, 2032.
(Added
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,
Amendments
2022—
Subsec. (a).
Subsec. (b)(1).
Subsec. (b)(2), (3).
Subsec. (d).
Subsec. (d)(1).
Subsec. (d)(1)(C).
Subsec. (d)(1)(F)(i).
Subsec. (d)(1)(G).
Subsec. (d)(1)(H).
Subsec. (d)(1)(H)(vi).
Subsec. (d)(3).
Subsec. (d)(5).
Subsec. (d)(6).
Subsec. (d)(7).
Subsec. (e).
Subsec. (f)(3).
Subsec. (f)(8).
Subsec. (f)(9) to (11).
Subsec. (g).
Subsec. (h).
2020—Subsec. (g)(3)(E)(ii).
2019—Subsec. (g)(3)(E)(ii).
2018—Subsec. (g)(3)(E)(ii).
2015—Subsec. (g)(3)(E).
2014—Subsec. (f)(1), (2).
Subsec. (f)(3).
2013—Subsec. (c)(2).
Subsec. (f)(2).
Subsec. (f)(7).
Subsec. (g).
2010—Subsec. (c)(2)(B)(ii).
2009—
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment; Transition Rule
"(1)
"(2)
"(3)
"(4)
"(5)
"(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
Effective Date of 2019 Amendment
Effective Date of 2018 Amendment
Effective Date of 2015 Amendment
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2013 Amendment
Amendment by section 104(c)(2)(I) of
Effective and Termination Dates of 2010 Amendment
Amendment by
Amendment by
Effective Date of 2009 Amendment
Amendment by
Effective Date
Section applicable to taxable years beginning after Dec. 31, 2008, see section 205(e) of
Gross-Up of Direct Spending
1 So in original. Another closing parenthesis probably should appear.