Reg. § 1.30D-1 Credit for new clean vehicles.
(a) In general Section of the Internal Revenue Code (Code) allows as a credit against the tax imposed by chapter 1 of the Code (chapter 1) for the taxable year of a taxpayer an amount equal to the sum of the credit amounts determined under section with respect to each new clean vehicle purchased by the taxpayer that the taxpayer places in service during the taxable year. This section provides generally applicable rules that apply for purposes of determining the credit under section and the section regulations (section credit). provides definitions that apply for purposes of section and the section regulations. provides rules regarding the critical minerals and battery components requirements of section . provides guidance regarding the limitations and special rules in section as well as other special rules with respect to the section credit. provides rules for the credit transfer election and advance payment program and for recapture. provides rules regarding the foreign entities of concern (FEOC) restriction of section .
(b) Application with other credits
(1) Business credit treated as part of general business credit Section requires that so much of the section credit that would be allowed under section for any taxable year (determined without regard to section and this ) that is attributable to a depreciable vehicle must be treated as a general business credit under section 38 of the Code that is listed in section for such taxable year (and not allowed under section ). In the case of a depreciable vehicle the use of which is 50 percent or more business use in the taxable year such vehicle is placed in service, the section credit that would be allowed under section for that taxable year (determined without regard to section and this ) that is attributable to such depreciable vehicle must be treated as a general business credit under section for such taxable year (and not allowed under section ). See of this section for rules applicable in the case of a depreciable vehicle the use of which is less than 50 percent business use in the taxable year such vehicle is placed in service. See of this section for rules applicable to a section credit allowed under section pursuant to section or or of this section.
(2) Apportionment of section 30D credit Unless the taxpayer has elected to transfer the credit pursuant to section and , in the case of a depreciable vehicle the business use of which is less than 50 percent of a taxpayer's total use of the vehicle for the taxable year in which the vehicle is placed in service, the taxpayer's section credit for that taxable year with respect to that vehicle must be apportioned as follows:
(i) The portion of the section credit corresponding to the percentage of the taxpayer's business use of the vehicle is treated as a general business credit under section and of this section (and not allowed under section or of this section).
(ii) The portion of the section credit corresponding to the percentage of the taxpayer's personal use of the vehicle is treated as a section credit allowed under section pursuant to section and of this section.
(3) Personal credit limited based on tax liability Section 26 of the Code limits the aggregate amount of credits allowed to a taxpayer by subpart A of part IV of subchapter A of chapter 1 (subpart A) based on the taxpayer's tax liability. Under section , the aggregate amount of credits allowed to a taxpayer by subpart A cannot exceed the sum of the taxpayer's regular tax liability (as defined in section ) for the taxable year reduced by the foreign tax credit allowable under section 27 of the Code, and the alternative minimum tax imposed by section 55(a) of the Code for the taxable year. Section provides that the section credit allowed under section for any taxable year (determined after application of section and and of this section) is treated as a credit allowable under subpart A for such taxable year, and the section credit allowed under section is therefore subject to the limitation imposed by section .
(c) Severability The provisions of this section are separate and severable from one another. If any provision of this section is stayed or determined to be invalid, it is the agencies' intention that the remaining provisions shall continue in effect.
(d) Applicability date This section applies to taxable years ending after December 4, 2023.
[T.D. 9995, 89 FR 37754, May 6, 2024]