Agency: Department of the Treasury
Description:
Tax credit for the purchase of certain new electric vehicles.
Bill Section:
13401
US Code:
26 USC 30D
New or Existing:
Existing
Potential Cost:
$7,541,000,000
Timeline:
2023 – 2032
Implementation Status/Rulemaking:
On October 5, 2022, the Internal Revenue Service issued Notice 2022-46 which requests comments on the clean vehicle credit: Source
On December 29, 2022, the Internal Revenue Service issued Notice 2023-1 providing initial guidance the clean vehicle credit: Source
On Feb. 3, 2023, the Internal Revenue Service modified the definitions of certain vehicle classifications: Source
On April 17, 2023, the Internal Revenue Service issued a notice of proposed rulemaking. Comments were due June 16, 2023: Source
On December 4, 2023, the Internal Revenue Service issued a notice of proposed rulemaking that would provide guidance regarding the excluded entity provisions of the clean vehicle credit, as amended by the Inflation Reduction Act of 2022. Comments were due January 18, 2024: Source
TCS Notes:
Credit of up to $7,500 for the purchase of a qualified plug-in electric vehicle (EV) or fuel cell electric vehicle (FCV). A vehicle qualifies for a credit of $3,750 if at least 40% of the value of the battery’s applicable critical minerals were extracted or processed in the U.S. or another country with which the U.S. has a free trade agreement, or recycled in North America. An additional $3,750 credit applies if at least 50% of the batter assembly occurred in the U.S. Vehicles purchased in 2024 do not qualify if their battery is assembled in a country of concern. Vehicles purchased in 2025 do not qualify if any of the materials for their battery are mined or recycled in a country of concern.
To claim the credit, filers must have an adjusted gross income below $300,000 for married couples filing jointly, $225,000 for heads of households, and $150,000 for all other filers.