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January 3, 2023

IRS issues guidance on intent to publish regulations regarding clean vehicles

Treasury and the IRS have issued three pieces of guidance pertaining to the recently amended clean vehicle credit. Notice 2023-01 announces the government's intention to publish regulations related to the new clean vehicle credit under IRC Section 30D. The proposed regulations will (1) provide guidance on the critical mineral and battery component requirements under IRC Section 30D(e), and (2) define certain terms relevant to the clean vehicle credit requirements under IRC Section 30D. Notice 2023-9 provides a safe harbor regarding the incremental cost of certain qualified commercial clean vehicles placed in service during 2023 for purposes of the credit provided under IRC Section 45W. And new frequently asked questions (FAQs) address how the credit applies to purchases of clean vehicles that are new, previously owned or commercial. A Tax Alert is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor