IRS Issues Guidance on Commercial Clean Vehicle Credits

IRS issues guidance and updates frequently asked questions related to new, previously owned and qualified commercial clean vehicle credits

Feb. 3, 2023

WASHINGTON — The Internal Revenue Service today issued Notice 2023-16 that modifies the definitions of certain vehicle classifications for the new, previously owned and qualified commercial clean vehicle credits.

As a result of this notice, the IRS updated the related frequently-asked-questions (FAQs) for these credits.

Today's guidance modifies Notice 2023-01 by changing the vehicle classification standard by which vans, sport utility vehicles, pickup trucks and other vehicles are defined.

Fact Sheet 2023-4 updates FAQs related to new, previously owned and qualified commercial clean vehicles.

The FAQs revisions are as follows:

• Topic A: Eligibility Rules for the New Clean Vehicle Credit: Questions 1 and 8

• Topic B: Income and Price Limitations for the New Clean Vehicle Credit: Questions 2, 6, 8, 9 and added new Question 7

• Topic C: When the New Requirements Apply to the New Clean Vehicle Credit: Question 7

• Topic D: Eligibility Rules for the Previously Owned Clean Vehicle Credit: Question 4

• Topic G: Qualified Commercial Clean Vehicles Credit: Question 6

These FAQs are being issued to provide general information to taxpayers, tax professionals and others interested in the issue as expeditiously as possible.

More information about reliance is available.