The Department of the Treasury (Treasury) issued a Request for Comments to help it develop guidance on the Internal Revenue Code (IRC) section 25E Previously-Owned Clean Vehicle tax credit and the IRC section 30D Clean Vehicle tax credit.
For the 25E credit, the request solicited comments on how the 30D rules should apply to the 25E credit, how a taxpayer can verify eligibility for a previously-owned clean vehicle, and whether additional guidance or definitions are required generally.
For the 30D credit, the request solicited comments on the definitions of “acquired,” “use,” and “lease” as they pertain to the definition of “new clean vehicle.” Treasury also sought input on critical minerals sourcing, battery component manufacturing and assembly, the foreign entity of concern sourcing exclusion, reporting and recordkeeping requirements, the final assembly requirement, vehicle classifications, election to transfer and advance payments, among other topics.
The deadline to submit initial comments in response to the request was November 4, 2022.