IRS Issues Guidance on Plug-In Electric Vehicle Credit

SECTION 1. PURPOSE

This notice sets forth guidance relating to the qualified 2- or 3-wheeled plug-in electric vehicle credit under § 30D(g) of the Internal Revenue Code, which applies to vehicles acquired after December 31, 2011, and before January 1, 2014. Specifically, this notice provides procedures for a vehicle manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) to certify to the Internal Revenue Service (IRS) that a vehicle of a particular make, model, and model year meets the requirements for the qualified 2- or 3-wheeled plug-in electric vehicle credit under § 30D(g).

This notice also provides guidance regarding the conditions under which taxpayers who purchase vehicles may rely on the vehicle manufacturer's (or, in the case of a foreign vehicle manufacturer, its domestic distributor's) certification in determining whether a credit is allowable with respect to a vehicle.

A credit for qualified 2- or 3-wheeled plug-in electric vehicles previously was enacted as § 30 in the American Recovery and Reinvestment Act of 2009, Pub. L. 111-5, 123 Stat. 115. The § 30 credit was effective for qualified 2- or 3-wheeled plug-in electric vehicles acquired after February 17, 2009, and before January 1, 2012. Guidance regarding the credit under § 30 for vehicles acquired after February 17, 2009, and before January 1, 2012, is provided in Notice 2009-58, 2009-30 I.R.B. 163. The American Taxpayer Relief Act of 2012, Pub. L. 112-240, 126 Stat. 2313, added new § 30D(g), which creates a credit for qualified 2- or 3-wheeled plug-in electric vehicles that is effective for vehicles acquired after December 31, 2011, and before January 1, 2014. This notice provides guidance regarding the credit under § 30D(g) for vehicles acquired after December 31, 2011, and before January 1, 2014.

SECTION 2. BACKGROUND

Section 30D(g)(1) provides a credit for qualified 2- or 3-wheeled plug-in electric vehicles. The credit is an amount equal to the sum of the applicable amount for each qualified 2- or 3-wheeled plug-in electric vehicle placed in service by the taxpayer during the taxable year. Under § 30D(g)(2), the applicable amount for a qualified 2-or 3-wheeled plug-in electric vehicle is an amount equal to the lesser of:

This notice applies to qualified 2- or 3-wheeled plug-in electric vehicles.

SECTION 4. MEANING OF TERMS

The following definitions apply for purposes of this notice:

.01 In General. Terms used in this notice and not defined in this section 4 have the same meaning as when used in § 30D.

.02 Acquire. The term "acquire" means to take title under state law. A vehicle is acquired on the date on which title to that vehicle passes under state law.

.03 Model Year. The term "model year" means the model year determined under the Clean Air Act regulations (see 40 CFR § 86-082-2).

SECTION 5. MANUFACTURER'S CERTIFICATION

.01 When Certification Permitted. A vehicle manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) may certify to purchasers that a vehicle of a particular make, model, and (if applicable) model year is eligible for the qualified 2- or 3-wheeled plug-in electric vehicle credit allowable under § 30D(g) when the following requirements are met:

.05 Effect of Erroneous Certification. The acknowledgment that the IRS provides for a certification is not a determination that a vehicle qualifies for the credit. If the IRS, upon examination (and after any appropriate consultation with the Department of Transportation or the Environmental Protection Agency), determines that the vehicle is not a qualified 2- or 3-wheeled plug-in electric vehicle, the manufacturer's (or, in the case of a foreign vehicle manufacturer, its domestic distributor's) right to provide a certification to future purchasers of 2- or 3-wheeled plug-in electric vehicles will be withdrawn. Purchasers who acquire vehicles after the date on which the IRS publishes an announcement of the withdrawal may not rely on the certification. Purchasers may continue to rely on the certification for vehicles they acquired on or before the date on which the announcement of the withdrawal is published (including in cases in which the vehicle is not placed in service and the credit is not claimed until after that date), and the IRS will not attempt to collect any understatement of tax liability attributable to such reliance. Manufacturers (or, in the case of foreign vehicle manufacturers, their domestic distributors) are reminded that an erroneous certification may result in the imposition of penalties, including, but not limited to, the following:

.01 Time for Filing Certification. For a certification under section 5 of this notice to be effective for a qualified 2- or 3-wheeled plug-in electric vehicle, the IRS must receive the certification not later than March 31, 2014.

.02 Address for Filing. Certifications under section 5 of this notice must be sent to:

This notice applies to qualified 2- or 3-wheeled plug-in electric vehicles acquired after December 31, 2011, and before January 1, 2014.

SECTION 8. PAPERWORK REDUCTION ACT

The collection of information contained in this notice has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-2137.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number.

The collections of information in this notice are in sections 5 and 6. This information is required to be collected and retained in order to ensure that a vehicle meets the requirements for the qualified 2- or 3-wheeled plug-in electric vehicle credit under § 30D(g). This information will be used to determine whether the vehicle for which the credit is claimed by a taxpayer is property that qualifies for the credit. The collection of information is voluntary to obtain a benefit. The likely respondents are corporations and partnerships who manufacture (or, in the case of foreign manufacturers, distribute) electric vehicles.

The estimated total annual reporting burden is 120 hours.

The estimated annual burden per respondent varies from 6 hours to 10 hours, depending on individual circumstances, with an estimated average burden of 8 hours to complete the certification required under this notice. The estimated number of respondents is 15.

The estimated annual frequency of responses is on occasion.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by section 6103.

SECTION 8. DRAFTING INFORMATION

The principal author of this notice is Shauna D. Manion of the Office of Associate Chief Counsel (Passthroughs & Special Industries). For further information regarding this notice, contact Patrick S. Kirwan at (202) 622-3110 (not a toll-free call).