Federal Tax, Tax

Clean Vehicle Credit Regulations

The Inflation Reduction Act (IRA) extended and expanded the Section 30D Clean Vehicle (CV) Credit. However, recently proposed IRS regulations effectively limit the number of CVs eligible for the credit due to strict sourcing requirements. The proposed regulations apply to CVs that buyers take delivery of on or after April 18, 2023. The CV Credit tops out at $7,500, but the IRA splits it into two parts, based on satisfying sourcing requirements for both critical minerals and battery components. Vehicles that meet only one of the two requirements are eligible for a $3,750 credit. Click here to check if a specific CV meets the critical mineral and battery component requirements. Questions? Contact the Cg Team. © 2023