§ 30D.
(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)).
(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Repealed.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 sections 30101 through 30169 of title 49, United States Code.
(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 section 1324 of title 31, United States Code, the payments under subparagraph (A) shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.
(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 (43 U.S.C. 1602(m))
1
So in original. Another closing parenthesis probably should appear.
to engage in the sale of vehicles.
(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 (25 U.S.C. 5131).
(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.
(Added [Pub. L. 110–343, div. B, title II, § 205(a)], Oct. 3, 2008, [122 Stat. 3835]; amended [Pub. L. 111–5, div. B, title I, § 1141(a)], Feb. 17, 2009, [123 Stat. 326]; [Pub. L. 111–148, title X, § 10909(b)(2)(H)], (c), Mar. 23, 2010, [124 Stat. 1023]; [Pub. L. 111–312, title I, § 101(b)(1)], Dec. 17, 2010, [124 Stat. 3298]; [Pub. L. 112–240, title I, § 104(c)(2)(I)], title IV, § 403(a), (b), Jan. 2, 2013, [126 Stat. 2322], 2337, 2338; [Pub. L. 113–295, div. A, title II, § 209(e)], Dec. 19, 2014, [128 Stat. 4028]; [Pub. L. 114–113, div. Q, title I, § 183(a)], Dec. 18, 2015, [129 Stat. 3072]; [Pub. L. 115–123, div. D, title I, § 40405(a)], Feb. 9, 2018, [132 Stat. 148]; [Pub. L. 116–94, div. Q, title I, § 126(a)], Dec. 20, 2019, [133 Stat. 3231]; [Pub. L. 116–260, div. EE, title I, § 144(a)], Dec. 27, 2020, [134 Stat. 3054]; [Pub. L. 117–169, title I, § 13401(a)]–(i)(1), Aug. 16, 2022, [136 Stat. 1954–1961].)