Treasury releases additional information on clean vehicle provisions of inflation reduction act - briefing.com @11:37 12/29/22
- "FAQs for consumers on the clean vehicle tax credits that will help them better understand how to access the various tax incentives for the purchase of new and used electric vehicles available beginning January 1. These FAQs include a link containing a list of clean vehicles that manufacturers have indicated to the IRS meet the requirements to claim the new clean vehicle tax credit beginning January 1, 2023. This list will be updated over the coming days and weeks so consumers looking to purchase a new clean vehicle in the new year should be sure to check it regularly.
- A notice on the "incremental cost" of vehicles eligible for the commercial clean vehicle tax credit. For vehicles under 14,000 pounds, this tax credit is the lesser of $7,500, 15% of a qualifying vehicle's cost (30% if the vehicle is not gas- or diesel-powered), or the "incremental cost" of the vehicle relative to a solely gas- or diesel-powered vehicle of comparable size and use. Today's notice clarifies the incremental cost in 2023 for commercial clean vehicles.
- A notice of intent to propose regulations on the tax credit for new clean vehicles. This includes definitions that will provide clarity to manufacturers and buyers around the changes that take effect automatically on January 1, such as Manufacturer's Suggested Retail Price limits. Importantly, the notice specifies that a vehicle is considered to be "placed in service" for the purposes of the tax credit on the date the taxpayer takes possession of the vehicle, which may or may not be the same date as the purchase date."
