New Clean Vehicles Tax Credit

Clean Vehicle tax credit limited to vehicles final assembled in the U.S., Canada or Mexico

IRS required to issue guidance on critical mineral and battery component requirements.

Revised tax credit created:

• Base credit amount of $3,750 if critical mineral requirement is met
• Additional $3,750 if battery component requirement is met
• No credit allowed for vans, SUVs, pickup trucks with MSRP >$80,000; other vehicles with an MSRP > $55,000
• No credit if MAGI > $300,000 (married filing jointly); MAGI >$225,000 (head of household; MAGI>$150,000 (single)
• For EV credits to be available, dealers required to report designated information to buyer and IRS Section 45W takes effect for commercial motor vehicles primarily propelled by a battery that is capped at $7,500 (Class 1-3) or $40,000 (Class 4-8)
• The $7,500 or $40,000 tax credit is limited to the lesser of 15% or the vehicle’s cost (30% if not powered by gas or diesel) or the incremental cost of the vehicle, as compared to a comparable vehicle powered by gas or diesel
• Vehicles must have a battery w/15kWh capacity (heavy) or 7kWh capacity (light); vehicle must be subject to depreciation, among other things