Treasury Issues Guidance on Clean Vehicle Classifications

On February 3, 2023, the Department of the Treasury issued a Notice and Fact Sheet on the Internal Revenue Code section 30D Clean Vehicle credit program providing clarity about the vehicle classifications used for defining applicable price thresholds. The Notice provides the definitions of classifications of vehicles, including vans, sport utility vehicles, and pickups. Treasury set the classifications to align with EPA’s consumer-facing Vehicle Fuel Economy Standard, allowing for the consistent treatment of crossover vehicles. Consumers can access information on eligible vehicle models on fueleconomy.gov. All vehicles previously eligible under the manufacturer suggested retail price limitations remain eligible, and all vehicles placed in service since January 1, 2023 that meet the Environmental Protection Agency Vehicle Fuel Economy Standard are also eligible for the 30D tax credit. In addition, Treasury released a fact sheet, superseding the prior fact sheet released on December 29, 2022.