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Taxes

IRS Updates Clean Vehicle Tax Credit FAQs

The updated FAQs, issued July 26, pertain to the New, Previously Owned, and Qualified Commercial Clean Vehicle Credits.

Jason Bramwell

Jul. 30, 2024

The IRS on July 26 updated frequently asked questions (FAQs) on the New, Previously Owned, and Qualified Commercial Clean Vehicle Credits, including guidance related to eligibility rules, income limitations, transfer rules, and dealer registration.

The FAQs in Fact Sheet 2024-26 supersede earlier FAQs that were posted in Fact Sheet 2024-14 by the IRS on April 16, 2024.

The FAQs revisions are as follows:

  • Topic A: Eligibility rules for the New Clean Vehicle Credit: updated questions 2, 7, 8, 12 and 18, and added questions 15-17.
  • Topic B: Income and Price Limitations for the New Clean Vehicle Credit: updated questions 3, 4, and 7-10, and added questions 12-14.
  • Topic C: When the New Requirements Apply to the New Clean Vehicle Credit: updated questions 4 and 6.
  • Topic D: Eligibility Rules for the Previously Owned Clean Vehicles Credit: updated questions 3 and 12 and added questions 13-15.
  • Topic E: Income and Price Limitations for Previously Owned Clean Vehicles: updated question 2.
  • Topic F: Claiming the Previously Owned Clean Vehicles Credit: updated question 3.
  • Topic H: Transfer of New Clean Vehicle Credit and Previously Owned Clean Vehicle Credit: updated questions 1-3, 11, 12, 14-15 and 18, and added questions 23-30.
  • Topic I: Registering a Dealer/Seller for Seller Reporting and Clean Vehicle Tax Credit Transfers: updated questions 4, 13 and 14, and added questions 19-30.

The Inflation Reduction Act, which was signed into law in 2022, made several changes to the tax credit provided in Section 30D of the Internal Revenue Code for qualified plug-in electric drive motor vehicles, including adding fuel cell vehicles to the Section 30D tax credit (New Clean Vehicle Credit). The law also added new credits for previously owned clean vehicles under Section 25E of the tax code (Previously Owned Clean Vehicle Credit) and for commercial clean vehicles under IRC Section 45W (Qualified Commercial Clean Vehicles Credit).