Treasury, IRS issue guidance on their intent to publish regulations regarding clean vehicles
IR-2022-232, Dec. 29, 2022, WASHINGTON – The Treasury Department and Internal Revenue Service today issued Notice 2023-01 of its intent to publish regulations related to the new clean vehicle credit.
The IRA provided a credit for qualified clean vehicles that are acquired and placed in service by the taxpayer during the taxable year. The IRA added certain requirements that any vehicle eligible for the new clean vehicle credit undergo final assembly in North America, and that no credit will be allowed for a vehicle with a manufacturer’s suggested retail price more than an applicable limitation, depending on vehicle classification.
The guidance issued today informs taxpayers that the Department of the Treasury and the Internal Revenue Service intend to propose regulations addressing the definitions of certain terms in respect of the credit and lays out the expected content of those regulations.
The notice provides that the proposed regulations will include definitions of the following terms, which are relevant for new clean vehicles placed in service after December 31, 2022:
- Final Assembly;
- North America;
- Manufacturer’s suggested retail price;
- Classifications for categories of vehicles, including vans, sport utility vehicles, pickup trucks, and other vehicles; and
- Placed in service.
