Today the IRS released its much-anticipated proposed regulations for the IRC §30D Clean Vehicle Credit critical mineral and battery component requirements. (IR-2023-64) The IRS also updated FAQs for various clean vehicle credits.
The Inflation Reduction Act provides for a maximum Clean Vehicle Credit of $7,500 for qualifying vehicles, but only if certain critical mineral and battery component requirements are met. These requirements only go into effect after April 17, 2023, the day after the Notice of Proposed Rulemaking is issued in the Federal Register. The regulations will apply to vehicles placed in service after April 17, 2023, even if the vehicle was purchased prior to that date. This means if taxpayers want to make sure they qualify for the credit, they should take possession of the vehicle prior to April 18, 2023.
Taxpayers and tax professionals will be able to verify whether a vehicle qualifies for a full or partial credit by going to:
Unfortunately, this website will not be updated for the new critical mineral and battery component requirements until April 17, 2023. Until then, taxpayers may not know whether the vehicle they want to purchase meets these new requirements.
The proposed regulations and updated FAQs also address other issues related to the Clean Vehicle Credit, including who claims the credit when it is purchased by partnerships or S corporations but used by their owners, clarifying which year the credit must be claimed, and the impact of changes in various vehicle classifications (e.g., from a car to a SUV) after the vehicle is purchased. We will cover these topics and more in our Post-Tax Season Update and Review webinar in May.
The proposed regulations are available at:
The updated FAQs are available at: