IRA Statuatory Location:
Tax Code Location:
26 U.S. Code § 30D
New or Modified Provision:
Modified and extended. Credit extended with new rules pertaining to final assembly in the United States, critical minerals/battery components, and foreign entities of concern. Per manufacturer limit is lifted.
Yes, point of sale transfer to registered dealers (definition of dealer includes persons licensed by Indian Tribal governments to engage in the sale of vehicles)
U.S. Department of Treasury
Provides a tax credit for purchasers of clean vehicles. The tax credit is not available for consumers who have adjusted gross incomes for the current or preceding year above $300,000 (couples), $225,000 (heads of household), $150,000 (singles). Not inflation adjusted.
Direct Pay Eligibility:
Yes. Starting in 2024, transferable only to the dealer at point of sale under section 30D(g) but not under section 6418.
Cannot claim both 30D credit and 45W credit.
Energy Community Bonus:
- Frequently Asked Questions About the New, Previously-Owned and Qualified Commercial Clean Vehicles Credit | Internal Revenue Service (irs.gov)
- IRS updates frequently asked questions related to new, previously owned and qualified commercial clean vehicle credits
- Credits for New Electric Vehicles Purchased in 2022 or Before | Internal Revenue Service (irs.gov)
- Request for Comments on Credits for Clean Vehicles (irs.gov)
- Treasury and IRS set out procedures for manufacturers, sellers of clean vehicles | Internal Revenue Service
- Proc. 2022-42 (irs.gov)
- Certain Definitions of Terms in Section 30D Clean Vehicle Credit (irs.gov)
- Anticipated Direction of Forthcoming Proposed Guidance on Critical Mineral and Battery Component Value Calculations for the New Clean Vehicle Credit (treasury.gov)
Related ResourcesAdditional information is available on the Resources page.
Period of Availability
Generally, vehicles placed in service in 2023-2032. Some of the 30D rules have differing timeframes.
Tax credit for consumers and businesses
Base Credit Amount:
$3,750 credit for vehicles meeting critical minerals requirement. The vehicle must contain a threshold percentage of critical minerals extracted or processed in the United States or in a country with which the United States has a free trade agreement, or recycled in North America. Additional $3,750 credit for vehicles meeting the requirement that a threshold percentage of battery components be manufactured or assembled in North America. Vehicles must meet other requirements, including final assembly in North America and MSRP limits (generally $55,000; for vans, SUVs, and pickups $80,000). Starting in 2024, qualifying vehicles cannot have battery components manufactured or assembled by a foreign entity of concern. Starting in 2025, qualifying vehicles’ batteries cannot contain critical minerals extracted, processed, or recycled by a foreign entity of concern.
Bonus Credit Amount: