Sec. 13401. Clean vehicle credit
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Section 30D(b) is amended by striking paragraphs
(2)and
(3)and inserting the following: 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. 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. . Section 30D(d) is amended— in paragraph (1)— in subparagraph (E), by striking and at the end, in subparagraph (F)(ii), by striking the period at the end and inserting , and , and by adding at the end the following: the final assembly of which occurs within North America. , by adding at the end the following: 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. . Section 30D(d), as amended by the preceding provisions of this section, is amended— in the heading, by striking and inserting qualified plug-in electric drive motor , clean in paragraph (1)— in the matter preceding subparagraph (A), by striking qualified plug-in electric drive motor and inserting clean , in subparagraph (C), by inserting qualified before manufacturer , in subparagraph (F)— in clause (i), by striking 4 and inserting 7 , and in clause (ii), by striking and at the end, in subparagraph (G), by striking the period at the end and inserting , and , and by adding at the end the following: 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— the name and taxpayer identification number of the taxpayer, 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, the battery capacity of the vehicle, verification that original use of the vehicle commences with the taxpayer, and the maximum credit under this section allowable to the taxpayer with respect to the vehicle. , in paragraph (3)— in the heading, by striking and inserting Manufacturer , Qualified manufacturer by striking The term and inserting manufacturer has the meaning given such term in The term , and qualified manufacturer means any manufacturer (within the meaning of the by inserting ) which enters into a written agreement with the Secretary under which such manufacturer agrees to make periodic written reports to the Secretary (at such times and in such manner as the Secretary may provide) providing vehicle identification numbers and such other information related to each vehicle manufactured by such manufacturer as the Secretary may require before the period at the end, and by adding at the end the following: 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). . Section 30D is amended— in subsection (a), by striking new qualified plug-in electric drive motor vehicle and inserting new clean vehicle , and in subsection (b)(1), by striking new qualified plug-in electric drive motor vehicle and inserting new clean vehicle . Section 30D is amended by striking subsection (e). Section 30D , as amended by the preceding provisions of this section, is amended by inserting after subsection
(d)the following: 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— extracted or processed— in the United States, or in any country with which the United States has a free trade agreement in effect, or 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). For purposes of subparagraph (A), the applicable percentage shall be— 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, in the case of a vehicle placed in service during calendar year 2024, 50 percent, in the case of a vehicle placed in service during calendar year 2025, 60 percent, in the case of a vehicle placed in service during calendar year 2026, 70 percent, and in the case of a vehicle placed in service after December 31, 2026, 80 percent. 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). For purposes of subparagraph (A), the applicable percentage shall be— 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, in the case of a vehicle placed in service during calendar year 2024 or 2025, 60 percent, in the case of a vehicle placed in service during calendar year 2026, 70 percent, in the case of a vehicle placed in service during calendar year 2027, 80 percent, in the case of a vehicle placed in service during calendar year 2028, 90 percent, in the case of a vehicle placed in service after December 31, 2028, 100 percent. 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. Not later than December 31, 2022, the Secretary shall issue proposed guidance with respect to the requirements under this subsection. . Section 30D(d), as amended by the preceding provisions of this section, is amended by adding at the end the following: For purposes of this section, the term new clean vehicle shall not include— 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 ( 42 U.S.C. 18741(a)(5) )), or 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). . Section 30D(f) is amended by adding at the end the following: 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. 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. No credit shall be allowed under subsection
(a)for any taxable year if— the lesser of— the modified adjusted gross income of the taxpayer for such taxable year, or the modified adjusted gross income of the taxpayer for the preceding taxable year, exceeds the threshold amount. For purposes of subparagraph (A)(ii), the threshold amount shall be— in the case of a joint return or a surviving spouse (as defined in section 2(a)), $300,000, in the case of a head of household (as defined in section 2(b)), $225,000, and in the case of a taxpayer not described in clause
(i)or (ii), $150,000. 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. No credit shall be allowed under subsection
(a)for a vehicle with a manufacturer’s suggested retail price in excess of the applicable limitation. For purposes of subparagraph (A), the applicable limitation for each vehicle classification is as follows: In the case of a van, $80,000. In the case of a sport utility vehicle, $80,000. In the case of a pickup truck, $80,000. In the case of any other vehicle, $55,000. 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. . Section 30D is amended by striking subsection
(g)and inserting the following: 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). 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— 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, 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— the manufacturer’s suggested retail price, the value of the credit allowed and any other incentive available for the purchase of such vehicle, and the amount provided by the dealer to such taxpayer as a condition of the election described in paragraph (1), 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 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— the availability or use of such incentive shall not limit the ability of a taxpayer to make an election described in paragraph (1), and such election shall not limit the value or use of such incentive. 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. 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. With respect to any payment described in paragraph (2)(C), such payment— shall not be includible in the gross income of the taxpayer, and with respect to the dealer, shall not be deductible under this title. In the case of any election under paragraph
(1)with respect to any vehicle— 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, paragraph
(6)of such subsection shall not apply, and 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. 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. Rules similar to the rules of section 6417(d)(6) shall apply for purposes of this paragraph. 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. 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) ) to engage in the sale of vehicles. 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 ). 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. . Section 30D , as amended by the preceding provisions of this section, is amended— in subsection (d)(1)(H) of such section— in clause (iv), by striking and at the end, in clause (v), by striking the period at the end and inserting , and , and by adding at the end the following: 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. , and in subsection (f)— by striking paragraph (3), and in paragraph (8), by inserting , including any vehicle with respect to which the taxpayer elects the application of subsection
(g)before the period at the end. Section 30D is amended by adding at the end the following: No credit shall be allowed under this section with respect to any vehicle placed in service after December 31, 2032. . The heading of section 30D is amended by striking and inserting New qualified plug-in electric drive motor vehicles . Clean vehicle credit Section 30B is amended— in subsection (h)(8), by striking , except that no benefit shall be recaptured if such property ceases to be eligible for such credit by reason of conversion to a qualified plug-in electric drive motor vehicle , and by striking subsection (i). Section 38(b)(30) is amended by striking qualified plug-in electric drive motor and inserting clean . Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended— in subparagraph (R), by striking and at the end, in subparagraph (S), by striking the period at the end and inserting , and , and by inserting after subparagraph
(S)the following: an omission of a correct vehicle identification number required under section 30D(f)(9) (relating to credit for new clean vehicles) to be included on a return. . Section 6501(m) is amended by striking 30D(e)(4) and inserting 30D(f)(6) . The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 30D and inserting after the item relating to section 30C the following item: Sec. 30D. Clean vehicle credit. . Beginning in fiscal year 2023 and each fiscal year thereafter, the portion of any credit allowed to an eligible entity (as defined in section 30D(g)(2) of the Internal Revenue Code of 1986) pursuant to an election made under section 30D(g) of the Internal Revenue Code of 1986 that is direct spending shall be increased by 6.0445 percent. Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to vehicles placed in service after December 31, 2022. The amendments made by subsection
(b)shall apply to vehicles sold after the date of enactment of this Act. The amendments made by subsections
(a)and
(e)shall apply to vehicles placed in service after the date on which the proposed guidance described in paragraph (3)(B) of section 30D(e) of the Internal Revenue Code of 1986 (as added by subsection (e)) is issued by the Secretary of the Treasury (or the Secretary's delegate). The amendments made by subsection
(g)shall apply to vehicles placed in service after December 31, 2023. The amendment made by subsection
(d)shall apply to vehicles sold after December 31, 2022. Solely for purposes of the application of section 30D of the Internal Revenue Code of 1986, in the case of a taxpayer that— after December 31, 2021, and before the date of enactment of this Act, 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 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.
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