Federal Tax, Tax

New Proposed Clean Vehicle Tax Credit

The IRS has issued proposed regulations for the new clean vehicle tax credit, which was part of the Inflation Reduction Act. The maximum credit is $7,500 per vehicle placed in service on or after April 18, 2023. A vehicle that meets the requirements for critical materials may qualify for a $3,750 credit. A vehicle that meets requirements for battery components may qualify for a $3,750 credit. Eligibility is generally based on the rules that apply as of the date the car is placed in service. Therefore, a vehicle placed in service before April 18, 2023, may or may not be eligible for the credit. Here’s an updated FAQ list from the IRS, reflecting the proposed regulations: https://bit.ly/3nARGey  Contact Cg with questions. © 2023