26 U.S.C. § 30D — Clean vehicle credit

Page 129 TITLE 26—INTERNAL REVENUE CODE § 30D tion [amending this section] shall apply to property placed in service after December 31, 2011.’’ EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–312, title VII, § 711(b), Dec. 17, 2010, 124 Stat. 3315, provided that: ‘‘The amendment made by this section [amending this section] shall apply to property placed in service after December 31, 2010.’’ EFFECTIVE DATE OF 2009 AMENDMENT Pub. L. 111–5, div. B, title I, § 1123(b), Feb. 17, 2009, 123 Stat. 325, provided that: ‘‘The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2008.’’ Amendment by section 1142(b)(3) of Pub. L. 111–5 ap- plicable to vehicles acquired after Feb. 17, 2009, see sec- tion 1142(c) of Pub. L. 111–5, set out as an Effective and Termination Dates of 2009 Amendment note under sec- tion 24 of this title. Amendment by section 1144(b)(2) of Pub. L. 111–5 ap- plicable to taxable years beginning after Dec. 31, 2008, see section 1144(c) of Pub. L. 111–5, set out as an Effec- tive and Termination Dates of 2009 Amendment note under section 24 of this title. EFFECTIVE DATE OF 2008 AMENDMENT Pub. L. 110–343, div. B, title II, § 207(c), Oct. 3, 2008, 122 Stat. 3840, provided that: ‘‘The amendments made by this section [amending this section] shall apply to property placed in service after the date of the enact- ment of this Act [Oct. 3, 2008], in taxable years ending after such date.’’ EFFECTIVE DATE OF 2007 AMENDMENT Pub. L. 110–172, § 6(e), Dec. 29, 2007, 121 Stat. 2481, pro- vided that: ‘‘(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section [amending this section and sections 41, 45J, 4041, 4042, 4082, and 6430 of this title, and enacting provisions set out as a note under section 6430 of this title] shall take effect as if included in the provisions of the Energy Policy Act of 2005 [Pub. L. 109–58] to which they relate. ‘‘(2) NONAPPLICATION OF EXEMPTION FOR OFF-HIGHWAY BUSINESS USE.—The amendment made by subsection (d)(3) [amending section 4041 of this title] shall apply to fuel sold for use or used after the date of the enactment of this Act [Dec. 29, 2007]. ‘‘(3) AMENDMENT MADE BY THE SAFETEA–LU.—The amendment made by subsection (d)(2)(C)(ii) [amending section 4082 of this title] shall take effect as if included in section 11161 of the SAFETEA–LU [Pub. L. 109–59].’’ EFFECTIVE DATE OF 2005 AMENDMENT Amendment by section 402(k) of Pub. L. 109–135 effec- tive as if included in the provision of the Energy Policy Act of 2005, Pub. L. 109–58, to which such amendment relates, see section 402(m)(1) of Pub. L. 109–135, set out as an Effective and Termination Dates of 2005 Amend- ments note under section 23 of this title. EFFECTIVE DATE Pub. L. 109–58, title XIII, § 1342(c), Aug. 8, 2005, 119 Stat. 1051, provided that: ‘‘The amendments made by this section [enacting this section and amending sec- tions 38, 55, 1016, and 6501 of this title] shall apply to property placed in service after December 31, 2005, in taxable years ending after such date.’’ SAVINGS PROVISION For provisions that nothing in amendment by Pub. L. 115–141 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Mar. 23, 2018, for purposes of determining li- ability for tax for periods ending after Mar. 23, 2018, see section 401(e) of Pub. L. 115–141, set out as a note under section 23 of this title. § 30D. Clean vehicle credit (a) Allowance of credit There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each new clean vehicle placed in serv- ice by the taxpayer during the taxable year. (b) Per vehicle dollar limitation (1) In general The amount determined under this sub- section with respect to any new clean vehicle is the sum of the amounts determined under paragraphs (2) and (3) with respect to such ve- hicle. (2) Critical minerals In the case of a vehicle with respect to which the requirement described in subsection (e)(1)(A) is satisfied, the amount determined under this paragraph is $3,750. (3) Battery components In the case of a vehicle with respect to which the requirement described in subsection (e)(2)(A) is satisfied, the amount determined under this paragraph is $3,750. (c) Application with other credits (1) Business credit treated as part of general business credit So much of the credit which would be al- lowed under subsection (a) for any taxable year (determined without regard to this sub- section) that is attributable to property of a character subject to an allowance for deprecia- tion shall be treated as a credit listed in sec- tion 38(b) for such taxable year (and not al- lowed under subsection (a)). (2) Personal credit For purposes of this title, the credit allowed under subsection (a) for any taxable year (de- termined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. (d) New clean vehicle For purposes of this section— (1) In general The term ‘‘new clean vehicle’’ means a motor vehicle— (A) the original use of which commences with the taxpayer, (B) which is acquired for use or lease by the taxpayer and not for resale, (C) which is made by a qualified manufac- turer, (D) which is treated as a motor vehicle for purposes of title II of the Clean Air Act, (E) which has a gross vehicle weight rating of less than 14,000 pounds, (F) which is propelled to a significant ex- tent by an electric motor which draws elec- tricity from a battery which— (i) has a capacity of not less than 7 kilo- watt hours, and (ii) is capable of being recharged from an external source of electricity, (G) the final assembly of which occurs within North America, and Page 130 TITLE 26—INTERNAL REVENUE CODE § 30D (H) for which the person who sells any ve- hicle to the taxpayer furnishes a report to the taxpayer and to the Secretary, at such time and in such manner as the Secretary shall provide, containing— (i) the name and taxpayer identification number of the taxpayer, (ii) the vehicle identification number of the vehicle, unless, in accordance with any applicable rules promulgated by the Sec- retary of Transportation, the vehicle is not assigned such a number, (iii) the battery capacity of the vehicle, (iv) verification that original use of the vehicle commences with the taxpayer, (v) the maximum credit under this sec- tion allowable to the taxpayer with re- spect to the vehicle, and (vi) in the case of a taxpayer who makes an election under subsection (g)(1), any amount described in subsection (g)(2)(C) which has been provided to such taxpayer. (2) Motor vehicle The term ‘‘motor vehicle’’ means any vehi- cle which is manufactured primarily for use on public streets, roads, and highways (not in- cluding a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels. (3) Qualified manufacturer The term ‘‘qualified manufacturer’’ means any manufacturer (within the meaning of the regulations prescribed by the Administrator of the Environmental Protection Agency for pur- poses of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.)) which en- ters into a written agreement with the Sec- retary under which such manufacturer agrees to make periodic written reports to the Sec- retary (at such times and in such manner as the Secretary may provide) providing vehicle identification numbers and such other infor- mation related to each vehicle manufactured by such manufacturer as the Secretary may require. (4) Battery capacity The term ‘‘capacity’’ means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 per- cent state of charge to a 0 percent state of charge. (5) Final assembly For purposes of paragraph (1)(G), the term ‘‘final assembly’’ means the process by which a manufacturer produces a new clean vehicle at, or through the use of, a plant, factory, or other place from which the vehicle is delivered to a dealer or importer with all component parts necessary for the mechanical operation of the vehicle included with the vehicle, whether or not the component parts are per- manently installed in or on the vehicle. (6) New qualified fuel cell motor vehicle For purposes of this section, the term ‘‘new clean vehicle’’ shall include any new qualified fuel cell motor vehicle (as defined in section 30B(b)(3)) which meets the requirements under subparagraphs (G) and (H) of paragraph (1). (7) Excluded entities For purposes of this section, the term ‘‘new clean vehicle’’ shall not include— (A) any vehicle placed in service after De- cember 31, 2024, with respect to which any of the applicable critical minerals contained in the battery of such vehicle (as described in subsection (e)(1)(A)) were extracted, proc- essed, or recycled by a foreign entity of con- cern (as defined in section 40207(a)(5) of the Infrastructure Investment and Jobs Act (42 U.S.C. 18741(a)(5))), or (B) any vehicle placed in service after De- cember 31, 2023, with respect to which any of the components contained in the battery of such vehicle (as described in subsection (e)(2)(A)) were manufactured or assembled by a foreign entity of concern (as so de- fined). (e) Critical mineral and battery component re- quirements (1) Critical minerals requirement (A) In general The requirement described in this subpara- graph with respect to a vehicle is that, with respect to the battery from which the elec- tric motor of such vehicle draws electricity, the percentage of the value of the applicable critical minerals (as defined in section 45X(c)(6)) contained in such battery that were— (i) extracted or processed— (I) in the United States, or (II) in any country with which the United States has a free trade agreement in effect, or (ii) recycled in North America, is equal to or greater than the applicable percentage (as certified by the qualified manufacturer, in such form or manner as prescribed by the Secretary). (B) Applicable percentage For purposes of subparagraph (A), the ap- plicable percentage shall be— (i) in the case of a vehicle placed in serv- ice after the date on which the proposed guidance described in paragraph (3)(B) is issued by the Secretary and before Janu- ary 1, 2024, 40 percent, (ii) in the case of a vehicle placed in service during calendar year 2024, 50 per- cent, (iii) in the case of a vehicle placed in service during calendar year 2025, 60 per- cent, (iv) in the case of a vehicle placed in service during calendar year 2026, 70 per- cent, and (v) in the case of a vehicle placed in serv- ice after December 31, 2026, 80 percent. (2) Battery components (A) In general The requirement described in this subpara- graph with respect to a vehicle is that, with respect to the battery from which the elec- tric motor of such vehicle draws electricity, the percentage of the value of the compo- Page 131 TITLE 26—INTERNAL REVENUE CODE § 30D nents contained in such battery that were manufactured or assembled in North Amer- ica is equal to or greater than the applicable percentage (as certified by the qualified manufacturer, in such form or manner as prescribed by the Secretary). (B) Applicable percentage For purposes of subparagraph (A), the ap- plicable percentage shall be— (i) in the case of a vehicle placed in serv- ice after the date on which the proposed guidance described in paragraph (3)(B) is issued by the Secretary and before Janu- ary 1, 2024, 50 percent, (ii) in the case of a vehicle placed in service during calendar year 2024 or 2025, 60 percent, (iii) in the case of a vehicle placed in service during calendar year 2026, 70 per- cent, (iv) in the case of a vehicle placed in service during calendar year 2027, 80 per- cent, (v) in the case of a vehicle placed in serv- ice during calendar year 2028, 90 percent, (vi) in the case of a vehicle placed in service after December 31, 2028, 100 per- cent. (3) Regulations and guidance (A) In general The Secretary shall issue such regulations or other guidance as the Secretary deter- mines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for require- ments for recordkeeping or information re- porting for purposes of administering the re- quirements of this subsection. (B) Deadline for proposed guidance Not later than December 31, 2022, the Sec- retary shall issue proposed guidance with re- spect to the requirements under this sub- section. (f) Special rules (1) Basis reduction For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed (determined without regard to subsection (c)). (2) No double benefit The amount of any deduction or other credit allowable under this chapter for a vehicle for which a credit is allowable under subsection (a) shall be reduced by the amount of credit al- lowed under such subsection for such vehicle (determined without regard to subsection (c)). [(3) Repealed. Pub. L. 117–169, title I, § 13401(g)(2)(B)(i), Aug. 16, 2022, 136 Stat. 1960] (4) Property used outside United States not qualified No credit shall be allowable under sub- section (a) with respect to any property re- ferred to in section 50(b)(1). (5) Recapture The Secretary shall, by regulations, provide for recapturing the benefit of any credit allow- able under subsection (a) with respect to any property which ceases to be property eligible for such credit. (6) Election not to take credit No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle. (7) Interaction with air quality and motor vehi- cle safety standards A vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with— (A) the applicable provisions of the Clean Air Act for the applicable make and model year of the vehicle (or applicable air quality provisions of State law in the case of a State which has adopted such provision under a waiver under section 209(b) of the Clean Air Act), and (B) the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code. (8) One credit per vehicle In the case of any vehicle, the credit de- scribed in subsection (a) shall only be allowed once with respect to such vehicle, as deter- mined based upon the vehicle identification number of such vehicle, including any vehicle with respect to which the taxpayer elects the application of subsection (g). (9) VIN requirement No credit shall be allowed under this section with respect to any vehicle unless the tax- payer includes the vehicle identification num- ber of such vehicle on the return of tax for the taxable year. (10) Limitation based on modified adjusted gross income (A) In general No credit shall be allowed under sub- section (a) for any taxable year if— (i) the lesser of— (I) the modified adjusted gross income of the taxpayer for such taxable year, or (II) the modified adjusted gross income of the taxpayer for the preceding taxable year, exceeds (ii) the threshold amount. (B) Threshold amount For purposes of subparagraph (A)(ii), the threshold amount shall be— (i) in the case of a joint return or a sur- viving spouse (as defined in section 2(a)), $300,000, (ii) in the case of a head of household (as defined in section 2(b)), $225,000, and (iii) in the case of a taxpayer not de- scribed in clause (i) or (ii), $150,000. (C) Modified adjusted gross income For purposes of this paragraph, the term ‘‘modified adjusted gross income’’ means ad- justed gross income increased by any amount excluded from gross income under section 911, 931, or 933. Page 132 TITLE 26—INTERNAL REVENUE CODE § 30D (11) Manufacturer’s suggested retail price limi- tation (A) In general No credit shall be allowed under sub- section (a) for a vehicle with a manufactur- er’s suggested retail price in excess of the applicable limitation. (B) Applicable limitation For purposes of subparagraph (A), the ap- plicable limitation for each vehicle classi- fication is as follows: (i) Vans In the case of a van, $80,000. (ii) Sport utility vehicles In the case of a sport utility vehicle, $80,000. (iii) Pickup trucks In the case of a pickup truck, $80,000. (iv) Other In the case of any other vehicle, $55,000. (C) Regulations and guidance For purposes of this paragraph, the Sec- retary shall prescribe such regulations or other guidance as the Secretary determines necessary for determining vehicle classifica- tions using criteria similar to that employed by the Environmental Protection Agency and the Department of the Energy to deter- mine size and class of vehicles. (g) Transfer of credit (1) In general Subject to such regulations or other guid- ance as the Secretary determines necessary, if the taxpayer who acquires a new clean vehicle elects the application of this subsection with respect to such vehicle, the credit which would (but for this subsection) be allowed to such taxpayer with respect to such vehicle shall be allowed to the eligible entity specified in such election (and not to such taxpayer). (2) Eligible entity For purposes of this subsection, the term ‘‘eligible entity’’ means, with respect to the vehicle for which the credit is allowed under subsection (a), the dealer which sold such ve- hicle to the taxpayer and has— (A) subject to paragraph (4), registered with the Secretary for purposes of this para- graph, at such time, and in such form and manner, as the Secretary may prescribe, (B) prior to the election described in para- graph (1) and not later than at the time of such sale, disclosed to the taxpayer pur- chasing such vehicle— (i) the manufacturer’s suggested retail price, (ii) the value of the credit allowed and any other incentive available for the pur- chase of such vehicle, and (iii) the amount provided by the dealer to such taxpayer as a condition of the elec- tion described in paragraph (1), (C) not later than at the time of such sale, made payment to such taxpayer (whether in cash or in the form of a partial payment or down payment for the purchase of such vehi- cle) in an amount equal to the credit other- wise allowable to such taxpayer, and (D) with respect to any incentive other- wise available for the purchase of a vehicle for which a credit is allowed under this sec- tion, including any incentive in the form of a rebate or discount provided by the dealer or manufacturer, ensured that— (i) the availability or use of such incen- tive shall not limit the ability of a tax- payer to make an election described in paragraph (1), and (ii) such election shall not limit the value or use of such incentive. (3) Timing An election described in paragraph (1) shall be made by the taxpayer not later than the date on which the vehicle for which the credit is allowed under subsection (a) is purchased. (4) Revocation of registration Upon determination by the Secretary that a dealer has failed to comply with the require- ments described in paragraph (2), the Sec- retary may revoke the registration (as de- scribed in subparagraph (A) of such paragraph) of such dealer. (5) Tax treatment of payments With respect to any payment described in paragraph (2)(C), such payment— (A) shall not be includible in the gross in- come of the taxpayer, and (B) with respect to the dealer, shall not be deductible under this title. (6) Application of certain other requirements In the case of any election under paragraph (1) with respect to any vehicle— (A) the requirements of paragraphs (1) and (2) of subsection (f) shall apply to the tax- payer who acquired the vehicle in the same manner as if the credit determined under this section with respect to such vehicle were allowed to such taxpayer, (B) paragraph (6) of such subsection shall not apply, and (C) the requirement of paragraph (9) of such subsection (f) shall be treated as satis- fied if the eligible entity provides the vehi- cle identification number of such vehicle to the Secretary in such manner as the Sec- retary may provide. (7) Advance payment to registered dealers (A) In general The Secretary shall establish a program to make advance payments to any eligible enti- ty in an amount equal to the cumulative amount of the credits allowed under sub- section (a) with respect to any vehicles sold by such entity for which an election de- scribed in paragraph (1) has been made. (B) Excessive payments Rules similar to the rules of section 6417(d)(6) shall apply for purposes of this paragraph. (C) Treatment of advance payments For purposes of section 1324 of title 31, United States Code, the payments under sub- Page 133 TITLE 26—INTERNAL REVENUE CODE § 30D 1 So in original. Another closing parenthesis probably should appear. paragraph (A) shall be treated in the same manner as a refund due from a credit provi- sion referred to in subsection (b)(2) of such section. (8) Dealer For purposes of this subsection, the term ‘‘dealer’’ means a person licensed by a State, the District of Columbia, the Commonwealth of Puerto Rico, any other territory or posses- sion of the United States, an Indian tribal gov- ernment, or any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m)) 1 to engage in the sale of vehicles. (9) Indian tribal government For purposes of this subsection, the term ‘‘Indian tribal government’’ means the recog- nized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the list published most re- cently as of the date of enactment of this sub- section pursuant to section 104 of the Feder- ally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131). (10) Recapture In the case of any taxpayer who has made an election described in paragraph (1) with re- spect to a new clean vehicle and received a payment described in paragraph (2)(C) from an eligible entity, if the credit under subsection (a) would otherwise (but for this subsection) not be allowable to such taxpayer pursuant to the application of subsection (f)(10), the tax imposed on such taxpayer under this chapter for the taxable year in which such vehicle was placed in service shall be increased by the amount of the payment received by such tax- payer. (h) Termination No credit shall be allowed under this section with respect to any vehicle placed in service after December 31, 2032. (Added Pub. L. 110–343, div. B, title II, § 205(a), Oct. 3, 2008, 122 Stat. 3835; amended Pub. L. 111–5, div. B, title I, § 1141(a), Feb. 17, 2009, 123 Stat. 326; Pub. L. 111–148, title X, § 10909(b)(2)(H), (c), Mar. 23, 2010, 124 Stat. 1023; Pub. L. 111–312, title I, § 101(b)(1), Dec. 17, 2010, 124 Stat. 3298; Pub. L. 112–240, title I, § 104(c)(2)(I), title IV, § 403(a), (b), Jan. 2, 2013, 126 Stat. 2322, 2337, 2338; Pub. L. 113–295, div. A, title II, § 209(e), Dec. 19, 2014, 128 Stat. 4028; Pub. L. 114–113, div. Q, title I, § 183(a), Dec. 18, 2015, 129 Stat. 3072; Pub. L. 115–123, div. D, title I, § 40405(a), Feb. 9, 2018, 132 Stat. 148; Pub. L. 116–94, div. Q, title I, § 126(a), Dec. 20, 2019, 133 Stat. 3231; Pub. L. 116–260, div. EE, title I, § 144(a), Dec. 27, 2020, 134 Stat. 3054; Pub. L. 117–169, title I, § 13401(a)–(i)(1), Aug. 16, 2022, 136 Stat. 1954–1961.) Editorial Notes REFERENCES IN TEXT The Clean Air Act, referred to in subsecs. (d)(1)(D), (3) and (f)(7)(A), is act July 14, 1955, ch. 360, 69 Stat. 322, which is classified generally to chapter 85 (§ 7401 et seq.) of Title 42, The Public Health and Welfare. Title II of the Act, known as the National Emissions Standards Act, is classified generally to subchapter II (§ 7521 et seq.) of chapter 85 of Title 42. Section 209(b) of the Act is classified to section 7543(b) of Title 42. For complete classification of this Act to the Code, see Short Title note set out under section 7401 of Title 42 and Tables. AMENDMENTS 2022—Pub. L. 117–169, § 13401(i)(1), substituted ‘‘Clean vehicle credit’’ for ‘‘New qualified plug-in electric drive motor vehicles’’ in section catchline. Subsec. (a). Pub. L. 117–169, § 13401(c)(2)(A), sub- stituted ‘‘new clean vehicle’’ for ‘‘new qualified plug-in electric drive motor vehicle’’. Subsec. (b)(1). Pub. L. 117–169, § 13401(c)(2)(B), sub- stituted ‘‘new clean vehicle’’ for ‘‘new qualified plug-in electric drive motor vehicle’’. Subsec. (b)(2), (3). Pub. L. 117–169, § 13401(a), added pars. (2) and (3) and struck out former pars. (2) and (3) which related to base amount and amount based on battery capacity to be used to determine amount of credit. Subsec. (d). Pub. L. 117–169, § 13401(c)(1)(A), sub- stituted ‘‘clean’’ for ‘‘qualified plug-in electric drive motor’’ in heading. Subsec. (d)(1). Pub. L. 117–169, § 13401(c)(1)(B)(i), sub- stituted ‘‘clean’’ for ‘‘qualified plug-in electric drive motor’’ in introductory provisions. Subsec. (d)(1)(C). Pub. L. 117–169, § 13401(c)(1)(B)(ii), in- serted ‘‘qualified’’ before ‘‘manufacturer’’. Subsec. (d)(1)(F)(i). Pub. L. 117–169, § 13401(c)(1)(B)(iii)(I), substituted ‘‘7’’ for ‘‘4’’. Subsec. (d)(1)(G). Pub. L. 117–169, § 13401(b)(1), added subpar. (G). Subsec. (d)(1)(H). Pub. L. 117–169, § 13401(c)(1)(B)(iii)(II)–(v), added subpar. (H). Subsec. (d)(1)(H)(vi). Pub. L. 117–169, § 13401(g)(2)(A), added cl. (vi). Subsec. (d)(3). Pub. L. 117–169, § 13401(c)(1)(C), sub- stituted ‘‘Qualified manufacturer’’ for ‘‘Manufacturer’’ in heading and, in text, substituted ‘‘The term ‘quali- fied manufacturer’ means any manufacturer (within the meaning of the’’ for ‘‘The term ‘manufacturer’ has the meaning given such term in’’ and inserted ‘‘) which enters into a written agreement with the Secretary under which such manufacturer agrees to make peri- odic written reports to the Secretary (at such times and in such manner as the Secretary may provide) pro- viding vehicle identification numbers and such other information related to each vehicle manufactured by such manufacturer as the Secretary may require’’ be- fore period at end. Subsec. (d)(5). Pub. L. 117–169, § 13401(b)(2), added par. (5). Subsec. (d)(6). Pub. L. 117–169, § 13401(c)(1)(D), added par. (6). Subsec. (d)(7). Pub. L. 117–169, § 13401(e)(2), added par. (7). Subsec. (e). Pub. L. 117–169, § 13401(e)(1), added subsec. (e). Pub. L. 117–169, § 13401(d), struck out subsec. (e) which related to limitation on number of new qualified plug- in electric drive motor vehicles eligible for credit. Subsec. (f)(3). Pub. L. 117–169, § 13401(g)(2)(B)(i), struck out par. (3). Text read as follows: ‘‘In the case of a vehi- cle the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without re- gard to subsection (c)). For purposes of subsection (c), property to which this paragraph applies shall be treat- ed as of a character subject to an allowance for depre- ciation.’’ Subsec. (f)(8). Pub. L. 117–169, § 13401(g)(2)(B)(ii), in- serted ‘‘, including any vehicle with respect to which Page 134 TITLE 26—INTERNAL REVENUE CODE § 30D the taxpayer elects the application of subsection (g)’’ before period at end. Pub. L. 117–169, § 13401(f), added par. (8). Subsec. (f)(9) to (11). Pub. L. 117–169, § 13401(f), added pars. (9) to (11). Subsec. (g). Pub. L. 117–169, § 13401(g)(1), added subsec. (g) and struck out former subsec. (g) which related to credit allowed for 2- and 3-wheeled plug-in electric ve- hicles. Subsec. (h). Pub. L. 117–169, § 13401(h), added subsec. (h). 2020—Subsec. (g)(3)(E)(ii). Pub. L. 116–260 substituted ‘‘January 1, 2022’’ for ‘‘January 1, 2021’’. 2019—Subsec. (g)(3)(E)(ii). Pub. L. 116–94 substituted ‘‘January 1, 2021’’ for ‘‘January 1, 2018’’. 2018—Subsec. (g)(3)(E)(ii). Pub. L. 115–123 substituted ‘‘January 1, 2018’’ for ‘‘January 1, 2017’’. 2015—Subsec. (g)(3)(E). Pub. L. 114–113 substituted ‘‘acquired—’’ for ‘‘acquired after December 31, 2011, and before January 1, 2014.’’ and added cls. (i) and (ii). 2014—Subsec. (f)(1), (2). Pub. L. 113–295, § 209(e)(1)(A), (B), inserted ‘‘(determined without regard to subsection (c))’’ before period at end. Subsec. (f)(3). Pub. L. 113–295, § 209(e)(2), inserted at end ‘‘For purposes of subsection (c), property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation.’’ 2013—Subsec. (c)(2). Pub. L. 112–240, § 104(c)(2)(I), amended par. (2) generally. Prior to amendment, par. (2) related to personal credit with a limitation based on amount of tax. Subsec. (f)(2). Pub. L. 112–240, § 403(b)(1), substituted ‘‘vehicle for which a credit is allowable under sub- section (a)’’ for ‘‘new qualified plug-in electric drive motor vehicle’’ and ‘‘allowed under such subsection’’ for ‘‘allowed under subsection (a)’’. Subsec. (f)(7). Pub. L. 112–240, § 403(b)(2), substituted ‘‘A vehicle’’ for ‘‘A motor vehicle’’ in introductory pro- visions. Subsec. (g). Pub. L. 112–240, § 403(a), added subsec. (g). 2010—Subsec. (c)(2)(B)(ii). Pub. L. 111–148, § 10909(b)(2)(H), (c), as amended by Pub. L. 111–312, tem- porarily substituted ‘‘section 25D’’ for ‘‘sections 23 and 25D’’. See Effective and Termination Dates of 2010 Amendment note below. 2009—Pub. L. 111–5 amended section generally. Prior to amendment, section provided credit with respect to each new qualified plug-in electric drive motor vehicle placed in service and set forth provisions defining ‘‘ap- plicable amount’’ and ‘‘new qualified plug-in electric drive motor vehicle’’ and stating limitations based on vehicle weight, the number of vehicles eligible for cred- it, and amount of tax liability. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2022 AMENDMENT; TRANSITION RULE Pub. L. 117–169, title I, § 13401(k), Aug. 16, 2022, 136 Stat. 1961, provided that: ‘‘(1) IN GENERAL.—Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this sec- tion [amending this section and sections 30B, 38, 6213, and 6501 of this title] shall apply to vehicles placed in service after December 31, 2022. ‘‘(2) FINAL ASSEMBLY.—The amendments made by sub- section (b) [amending this section] shall apply to vehi- cles sold after the date of enactment of this Act [Aug. 16, 2022]. ‘‘(3) PER VEHICLE DOLLAR LIMITATION AND RELATED RE- QUIREMENTS.—The amendments made by subsections (a) and (e) [amending this section] shall apply to vehicles placed in service after the date on which the proposed guidance described in paragraph (3)(B) of section 30D(e) of the Internal Revenue Code of 1986 (as added by sub- section (e)) is issued by the Secretary of the Treasury (or the Secretary’s delegate) [proposed guidance issued Apr. 17, 2023, see 88 F.R. 23370]. ‘‘(4) TRANSFER OF CREDIT.—The amendments made by subsection (g) [amending this section] shall apply to vehicles placed in service after December 31, 2023. ‘‘(5) ELIMINATION OF MANUFACTURER LIMITATION.—The amendment made by subsection (d) [amending this sec- tion] shall apply to vehicles sold after December 31, 2022.’’ Pub. L. 117–169, title I, § 13401(l), Aug. 16, 2022, 136 Stat. 1962, provided that: ‘‘Solely for purposes of the application of section 30D of the Internal Revenue Code of 1986, in the case of a taxpayer that— ‘‘(1) after December 31, 2021, and before the date of enactment of this Act [Aug. 16, 2022], purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle (as defined in section 30D(d)(1) of the Internal Rev- enue Code of 1986, as in effect on the day before the date of enactment of this Act), and ‘‘(2) placed such vehicle in service on or after the date of enactment of this Act, such taxpayer may elect (at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary’s delegate, may prescribe) to treat such vehicle as having been placed in service on the day be- fore the date of enactment of this Act.’’ EFFECTIVE DATE OF 2020 AMENDMENT Pub. L. 116–260, div. EE, title I, § 144(b), Dec. 27, 2020, 134 Stat. 3054, provided that: ‘‘The amendment made by this section [amending this section] shall apply to vehi- cles acquired after December 31, 2020.’’ EFFECTIVE DATE OF 2019 AMENDMENT Pub. L. 116–94, div. Q, title I, § 126(b), Dec. 20, 2019, 133 Stat. 3231, provided that: ‘‘The amendment made by this section [amending this section] shall apply to vehi- cles acquired after December 31, 2017.’’ EFFECTIVE DATE OF 2018 AMENDMENT Pub. L. 115–123, div. D, title I, § 40405(b), Feb. 9, 2018, 132 Stat. 148, provided that: ‘‘The amendment made by this section [amending this section] shall apply to vehi- cles acquired after December 31, 2016.’’ EFFECTIVE DATE OF 2015 AMENDMENT Pub. L. 114–113, div. Q, title I, § 183(b), Dec. 18, 2015, 129 Stat. 3073, provided that: ‘‘The amendments made by this section [amending this section] shall apply to vehi- cles acquired after December 31, 2014.’’ EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–295 effective as if included in the provisions of the American Recovery and Rein- vestment Tax Act of 2009, Pub. L. 111–5, div. B, title I, to which such amendment relates, see section 209(k) of Pub. L. 113–295, set out as a note under section 24 of this title. EFFECTIVE DATE OF 2013 AMENDMENT Amendment by section 104(c)(2)(I) of Pub. L. 112–240 applicable to taxable years beginning after Dec. 31, 2011, see section 104(d) of Pub. L. 112–240, set out as a note under section 23 of this title. Pub. L. 112–240, title IV, § 403(c), Jan. 2, 2013, 126 Stat. 2338, provided that: ‘‘The amendments made by this section [amending this section] shall apply to vehicles acquired after December 31, 2011.’’ EFFECTIVE AND TERMINATION DATES OF 2010 AMENDMENT Amendment by Pub. L. 111–148 terminated applicable to taxable years beginning after Dec. 31, 2011, and sec- tion is amended to read as if such amendment had never been enacted, see section 10909(c) of Pub. L. 111–148, set out as a note under section 1 of this title. Amendment by Pub. L. 111–148 applicable to taxable years beginning after Dec. 31, 2009, see section 10909(d) of Pub. L. 111–148, set out as a note under section 1 of this title. EFFECTIVE DATE OF 2009 AMENDMENT Amendment by Pub. L. 111–5 applicable to vehicles acquired after Dec. 31, 2009, see section 1141(c) of Pub. Page 135 TITLE 26—INTERNAL REVENUE CODE § 31 L. 111–5, set out as a note under section 30B of this title. EFFECTIVE DATE Section applicable to taxable years beginning after Dec. 31, 2008, see section 205(e) of Pub. L. 110–343, set out as an Effective and Termination Dates of 2008 Amend- ment note under section 24 of this title. GROSS-UP OF DIRECT SPENDING Pub. L. 117–169, title I, § 13401(j), Aug. 16, 2022, 136 Stat. 1961, provided that: ‘‘Beginning in fiscal year 2023 and each fiscal year thereafter, the portion of any cred- it allowed to an eligible entity (as defined in section 30D(g)(2) of the Internal Revenue Code of 1986) pursuant to an election made under section 30D(g) of the Internal Revenue Code of 1986 that is direct spending shall be in- creased by 6.0445 percent.’’ SUBPART C—REFUNDABLE CREDITS Sec. 31. Tax withheld on wages. 32. Earned income. 33. Tax withheld at source on nonresident aliens and foreign corporations. 34. Certain uses of gasoline and special fuels. 35. Health insurance costs of eligible individuals. 36. First-time homebuyer credit. [36A. Repealed.] 36B. Refundable credit for coverage under a quali- fied health plan. [36C. Renumbered.] 37. Overpayments of tax. Editorial Notes AMENDMENTS 2014—Pub. L. 113–295, div. A, title II, § 221(a)(5)(A), Dec. 19, 2014, 128 Stat. 4037, struck out item 36A ‘‘Mak- ing work pay credit’’. 2010—Pub. L. 111–148, title X, § 10909(b)(2)(Q), (c), Mar. 23, 2010, 124 Stat. 1023, as amended by Pub. L. 111–312, title I, § 101(b)(1), Dec. 17, 2010, 124 Stat. 3298, tempo- rarily added item 36C ‘‘Adoption expenses’’. See Effec- tive and Termination Dates of 2010 Amendment note set out under section 1 of this title. Pub. L. 111–148, title I, § 1401(d)(2), Mar. 23, 2010, 124 Stat. 220, added item 36B. 2009—Pub. L. 111–5, div. B, title I, § 1001(e)(3), Feb. 17, 2009, 123 Stat. 312, added item 36A. 2008—Pub. L. 110–289, div. C, title I, § 3011(b)(4), July 30, 2008, 122 Stat. 2891, added item 36 and redesignated former item 36 as 37. 2002—Pub. L. 107–210, div. A, title II, § 201(c)(2), Aug. 6, 2002, 116 Stat. 960, which directed amendment of the table of sections for subpart C of part IV of this chapter by adding items 35 and 36 and striking out the last item, was executed to the table of sections for this sub- part which is in part IV of subchapter A of this chapter by adding those items and striking out former item 35 ‘‘Overpayments of tax’’ to reflect the probable intent of Congress. 1984—Pub. L. 98–369, div. A, title IV, § 471(b), July 18, 1984, 98 Stat. 826, added subpart C heading and analysis of sections for subpart C consisting of items 31, 32 (for- merly 43), 33 (formerly 32), 34 (formerly 39), and 35 (for- merly 45). Former subpart C, setting out the rules for computing credit for expenses of work incentive pro- grams, was repealed. § 31. Tax withheld on wages (a) Wage withholding for income tax purposes (1) In general The amount withheld as tax under chapter 24 shall be allowed to the recipient of the in- come as a credit against the tax imposed by this subtitle. (2) Year of credit The amount so withheld during any calendar year shall be allowed as a credit for the tax- able year beginning in such calendar year. If more than one taxable year begins in a cal- endar year, such amount shall be allowed as a credit for the last taxable year so beginning. (b) Credit for special refunds of social security tax (1) In general The Secretary may prescribe regulations providing for the crediting against the tax im- posed by this subtitle of the amount deter- mined by the taxpayer or the Secretary to be allowable under section 6413(c) as a special re- fund of tax imposed on wages. The amount al- lowed as a credit under such regulations shall, for purposes of this subtitle, be considered an amount withheld at source as tax under sec- tion 3402. (2) Year of credit Any amount to which paragraph (1) applies shall be allowed as a credit for the taxable year beginning in the calendar year during which the wages were received. If more than one taxable year begins in the calendar year, such amount shall be allowed as a credit for the last taxable year so beginning. (c) Special rule for backup withholding Any credit allowed by subsection (a) for any amount withheld under section 3406 shall be al- lowed for the taxable year of the recipient of the income in which the income is received. (Aug. 16, 1954, ch. 736, 68A Stat. 12; Pub. L. 94–455, title XIX, § 1906(b)(13)(D), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–248, title III, §§ 302(a), 308(a), Sept. 3, 1982, 96 Stat. 585, 591; Pub. L. 97–354, § 3(i)(4), Oct. 19, 1982, 96 Stat. 1691; Pub. L. 97–448, title III, § 306(b)(1), Jan. 12, 1983, 96 Stat. 2405; Pub. L. 98–67, title I, §§ 102(a), 104(d)(2), Aug. 5, 1983, 97 Stat. 369, 379; Pub. L. 98–369, div. A, title IV, § 471(c), title VII, § 714(j)(2), July 18, 1984, 98 Stat. 826, 962.) Editorial Notes AMENDMENTS 1984—Subsec. (a)(1). Pub. L. 98–369, § 714(j)(2), sub- stituted ‘‘as tax under chapter 24’’ for ‘‘under section 3402 as tax on the wages of any individual’’. 1983—Pub. L. 98–67 added subsec. (c) and repealed amendments made by Pub. L. 97–248. See 1982 Amend- ment note below. Pub. L. 97–448 amended subsec. (d) generally. See 1982 Amendment note below. 1982—Pub. L. 97–248, as amended by Pub. L. 97–354 and Pub. L. 97–448, amended section generally, applicable to payments of interest, dividends, and patronage divi- dends paid or credited after June 30, 1983. Section 102(a), (b) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III of Pub. L. 97–248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted. 1976—Subsec. (b)(1). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘The Secretary’’ and ‘‘(or his dele- gate)’’ after ‘‘taxpayer or the Secretary’’.