Sec. 303. Modification of clean vehicle credit
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Section 30D(b) is amended by striking paragraphs
(2)and
(3)and inserting the following: The amount determined under this paragraph is $2,500. In the case of a vehicle which draws propulsion energy from a battery with not less than 5 kilowatt hours of capacity, the amount determined under this paragraph is $417, plus $417 for each kilowatt hour of capacity in excess of 5 kilowatt hours. The amount determined under this paragraph shall not exceed $5,000. . Section 30D(d) is amended— in paragraph (1), by striking subparagraph (G), and by striking paragraph (5). Section 30D(d), as amended by subsection (b), is amended— in the heading, by striking and inserting Clean , Qualified plug-in electric drive motor in paragraph (1)— in the matter preceding subparagraph (A), by striking clean and inserting qualified plug-in electric drive motor , in subparagraph (C), by striking qualified before manufacturer , in subparagraph (E), by adding and at the end, in subparagraph (F)— in clause (i), by striking 7 and inserting 4 , and in clause (ii), by striking the comma at the end and inserting a period, and by striking subparagraph (H), in paragraph (3)— in the heading, by striking and inserting qualified manufacturer , and Manufacturer by striking The term and all that follows through the period and inserting qualified manufacturer means The term , and manufacturer has the meaning given such term in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act ( 42 U.S.C. 7521 et seq. ). by striking paragraph (6). Section 30D is amended— in subsection (a), by striking new clean vehicle and inserting new qualified plug-in electric drive motor vehicle , and in subsection (b)(1), by striking new clean vehicle and inserting new qualified plug-in electric drive motor vehicle . Section 30D(e), as added by Public Law 117–169 , is amended by striking paragraphs
(1)and (2), by redesignating paragraph
(3)as paragraph (4), and by inserting before paragraph
(4)(as so redesignated) the following new paragraphs: No credit shall be allowed under this section with respect to any vehicle unless, 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 80 percent (as certified by the manufacturer, in such form or manner as prescribed by the Secretary). For purposes of subparagraph (A)(ii), the term free trade agreement means an international agreement approved by Congress that eliminates duties and other restrictive regulations of commerce on substantially all the trade between the United States and one or more other countries. No credit shall be allowed under this section with respect to any vehicle unless, with respect to the battery from which the electric motor of such vehicle draws electricity, all of the components contained in such battery were manufactured or assembled in North America (as certified by the manufacturer, in such form or manner as prescribed by the Secretary). No credit shall be allowed under this section which respect to any vehicle placed in service after December 31, 2024, if any of the applicable critical minerals contained in the battery of such vehicle (as described in paragraph (1)) 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) )). . Section 30D(d) is amended by striking paragraph (7). Section 30D is amended by striking subsection (g). Section 30D(f) is amended— by inserting after paragraph
(2)the following: In the case of a vehicle the use of which is described in paragraph
(3)or
(4)of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection
(a)with respect to such vehicle (determined without regard to subsection (c)). For purposes of subsection (c), property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation. , and in paragraph (8), by striking , including any vehicle with respect to which the taxpayer elects the application of subsection
(g). Section 30D is amended by inserting after subsection
(f)the following: In the case of a new qualified plug-in electric drive motor vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection
(a)shall be allowed. For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph
(1)sold for use in the United States after December 31, 2009, is at least 200,000. For purposes of paragraph (1), the applicable percentage is— 50 percent for the first 2 calendar quarters of the phaseout period, 25 percent for the 3rd and 4th calendar quarters of the phaseout period, and 0 percent for each calendar quarter thereafter. Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection. . Section 30D is amended by striking subsection (h). The heading of section 30D is amended by striking and inserting clean vehicle credit . new qualified plug-in electric drive motor vehicles Section 30B(h)(8) is amended by inserting , 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 , before the period at the end. Section 38(b)(30) is amended by striking clean and inserting qualified plug-in electric drive motor . 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. New qualified plug-in electric drive motor vehicles. Section 13401 of Public Law 117–169 is amended by striking subsection (j). Except as otherwise provided in this subsection or subsection (k), the amendments made by this section shall apply to vehicles placed in service after June 9, 2023. The amendments made by subsections
(b)and
(f)shall apply to vehicles sold after June 9, 2023. Notwithstanding the preceding sentence, the phaseout period (as defined in section 30D(g) of the Internal Revenue Code of 1986, as amended by this section) shall be determined by taking into account all vehicles described in section 30D(g) of such Code (as so amended). Notwithstanding subsection
(j)(other than the last sentence of subsection (j)(2)), the amendments made by this section shall not apply with respect to any vehicle which is— acquired by the taxpayer pursuant to a written binding contract that was in effect on June 9, 2023, and placed in service before June 9, 2024. Notwithstanding subsection (k)(4) of section 13401 of Public Law 117–169 , the amendments made by subsection
(g)of such section shall not apply. Notwithstanding subsection (k)(3) of section 13401 of Public Law 117–169 , the amendments made by subsection
(a)of such section shall not apply unless the guidance referred to in such subsection (k)(3) is issued on or before June 9, 2023.
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