Section 1.30D-0 - [Effective 7/5/2024] Table of contentsThis section lists the captions contained in §§ 1.30D-1 through 1.30D-6.
§ 1.30D-1 Credit for new clean vehicles. (b) Application with other credits. (1) Business credit treated as part of general business credit.(2) Apportionment of section 30D credit.(3) Personal credit limited based on tax liability.§ 1.30D-2 Definitions for purposes of section 30D. (b) Definitions. (1) Advance payment program.(2) Applicable critical mineral. (ii) Example: Form of applicable critical mineral.(4) Associated constituent material.(7) Battery cell production facility.(10) Clean vehicle battery.(11) Compliant-battery ledger.(12) Constituent materials.(13) Country with which the United States has a free trade agreement in effect. (ii) Free trade agreements in effect.(14) Credit transfer election.(16) Dealer tax compliance.(17) Depreciable vehicle.(24) Foreign entity of concern.(25) Impracticable-to-trace battery materials.(ii) Identified impracticable-to-trace battery materials.(28) Manufacturer. (ii) Modification of a new motor vehicle.(29) Manufacturer's suggested retail price.(iii) Retail delivered price.(31) Modified adjusted gross income.(33) New qualified fuel cell motor vehicle.(35) North American battery component.(39) Qualifying battery component content.(40) Qualifying critical mineral.(41) Qualifying critical mineral content.(42) Qualified manufacturer.(43) Recycling. (ii) Example: Recycling of applicable critical mineral.(45) Section 30D regulations.(48) Total incremental value of battery components.(49) Total incremental value of North American battery components.(50) Total traced qualifying value.(51) Total value of critical minerals.(52) Total value of qualifying critical minerals.(53) Traced qualifying value.(56) Vehicle classification. (iii) Sport utility vehicle.§ 1.30D-3 Critical minerals and battery components requirements.(a) Critical minerals requirement.(2) Applicable critical minerals percentage. (ii) Vehicles placed in service between April 18, 2023, and December 31, 2023.(iii) Vehicles placed in service during calendar year 2024.(iv) Vehicles placed in service during calendar year 2025.(v) Vehicles placed in service during calendar year 2026.(vi) Vehicles placed in service during calendar year 2027 and later.(3) Determining qualifying critical mineral content.(ii) Separate determinations required for each procurement chain.(iii) Time for determining value.(iv) Application of qualifying critical mineral content to vehicles.(4) Temporary safe harbor for determining qualifying critical mineral content for vehicles for which a qualified manufacturer submits a periodic written report on or after May 6, 2024 and before January 1, 2027.(ii) Separate determinations required for each procurement chain.(iii) Time for determining value.(iv) Application of qualifying critical mineral content to vehicles.(v) Consistent determination required for all procurement chains.(5) Rule for determining qualifying critical mineral content for vehicles for which a qualified manufacturer submitted a periodic written report before May 6, 2024.(b) Battery components requirement.(2) Applicable battery components percentage. (ii) Vehicles placed in service between April 18, 2023, and December 31, 2023.(iii) Vehicles placed in service during calendar year 2024 or 2025.(iv) Vehicles placed in service during calendar year 2026.(v) Vehicles placed in service during calendar year 2027.(vi) Vehicles placed in service during calendar year 2028.(vii) Vehicles placed in service in calendar year 2029 and later.(3) Determining qualifying battery component content. (ii) Time for determining value.(iii) Application of qualifying battery component content to vehicles.(iv) End point for determination.(c) Definitions. (1) Certain terms relevant to the critical minerals requirement.(ii) Qualifying critical mineral.(B) Extracted or processed in the United States or in any country with which the United States has a free trade agreement in effect.(C) Recycled in North America.(iii) Qualifying critical mineral content.(iv) Total traced qualifying value.(v) Total value of critical minerals.(vi) Total value of qualifying critical minerals.(vii) Traced qualifying value.(A) Extracted or processed in the United States or in any country with which the United States has a free trade agreement in effect.(B) Recycled in North America.(2) Certain terms relevant to the battery components requirement.(ii) North American battery component.(iii) Qualifying battery component content.(iv) Total incremental value of battery components.(v) Total incremental value of North American battery components.(d) Upfront review of critical minerals and battery components requirements.(e) New qualified fuel cell motor vehicles.(f) Examples. (1) Example 1: Critical minerals requirement. (2) Example 2: Critical minerals requirement temporary safe harbor.(3) Example 3: Battery components requirement.(h) Applicability date. (2) Upfront review and traced qualifying value.§ 1.30D-4 Special rules.(a) No double benefit.(2) Interaction between section 30D and section 25E credits.(3) Interaction between section 30D and section 45W credits.(b) Limitation based on modified adjusted gross income.(3) Special rule for change in filing status.(4) Application to estates and trusts.(i) Estates and non-grantor trusts.(5) Application to passthrough entities.(c) Credit may generally be claimed on only one tax return. (2) Exception for passthrough entities.(3) Seller reporting. (ii) Passthrough entities.(e) Recapture rules. (1) In general. (iv) Other vehicle returns and resales.(2) Recapture rules in the case of a credit transfer election.(3) Example: Demonstrator vehicle.(g) Requirement to file return.(h) Taxpayer reliance on manufacturer certifications and periodic written reports to the IRS.§ 1.30D-5 Transfer of credit. (b) Definitions. (1) Advance payment program.(2) Credit transfer election.(4) Dealer tax compliance.(c) Dealer registration. (2) Dealer tax compliance required.(3) Suspension of registration.(4) Revocation of registration.(d) Credit transfer election by electing taxpayer.(e) Federal income tax consequences of the credit transfer election. (1) Tax consequences for electing taxpayer.(2) Tax consequences for eligible entity.(3) Form of payment from eligible entity to electing taxpayer.(4) Additional requirements.(5) Examples. (i) Example 1: Electing taxpayer's regular tax liability less than amount of credit.(ii) Example 2: Non-cash payment by eligible entity to electing taxpayer.(iii) Example 3: Eligible entity is a partnership.(f) Advance payments received by eligible entities.(2) Requirements for a registered dealer to become an eligible entity.(3) Suspension of registered dealer eligibility.(4) Revocation of registered dealer eligibility.(g) Increase in tax.(1) Recapture if electing taxpayer exceeds modified adjusted gross income limitation.(2) Excessive payments. (iii) Excessive payment defined.(iv) Special rule for cases in which the electing taxpayer's modified adjusted gross income exceeds the limitation.(3) Examples.(i) Example 1: Registered dealer is not an eligible entity.(ii) Example 2: Incorrect manufacturer certifications.(i) Two credit transfer elections per year.§ 1.30D-6 Foreign entity of concern restriction.(b) Due diligence required. (2) Transition rule for impracticable-to-trace battery materials.(c) FEOC compliance. (2) FEOC-compliant batteries.(3) FEOC-compliant battery cells. (ii) Allocation-based determination for applicable critical minerals and associated constituent materials of a battery cell.(B) Allocation limited to applicable critical minerals in the battery cell.(C) Separate allocation required for each type of associated constituent material. (D) Allocation within each product line of battery cells.(E) Limitation on number of FEOC-compliant battery cells.(iii) Transition rule for impracticable-to-trace battery materials.(4) FEOC-compliant battery components and applicable critical minerals.(ii) Timing of determination of FEOC or FEOC-compliant status.(iii) Example: Timing of FEOC compliance determination.(5) Third-party manufacturers or suppliers.(i) Due diligence required.(ii) Provision of required information to qualified manufacturer.(iii) Contractual obligations.(iv) Additional requirements in case of multiple third-party manufacturers or suppliers.(d) Compliant-battery ledger. (2) Determination of number of batteries. (iii) Decrease or increase to compliant-battery ledger.(3) Tracking FEOC-compliant batteries.(4) Reconciliation of battery estimates.(f) Inaccurate attestations, certifications, or documentation.(2) Inadvertence. (i) Inaccurate information may be cured by qualified manufacturer.(ii) Consequences if errors not cured.(3) Intentional disregard or fraud. (i) All vehicles ineligible for credit.(ii) Termination of written agreement.(g) Rules inapplicable to new qualified fuel cell motor vehicles.(h) Examples. (1) Example 1: In general. (2) Example 2: Rules for third-party suppliers.(3) Example 3: Applicable critical minerals. (4) Example 4: Comprehensive example.