Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has issued guidance relating to the new qualified plug-in electric drive motor vehicle credit under Code Sec. 30D. The guidance includes the procedures for a vehicle manufacturer to certify that the motor vehicle meets certain requirements that must be satisfied to claim the new qualified plug-in electric drive motor vehicle credit and the amount of the credit allowable for that motor vehicle. It also provides guidance to purchasers of the motor vehicles regarding reliance on the manufacturer's certification in determining whether the credit is allowable for the vehicle and the amount of the credit.

  The credit, as provided in Code Sec. 30D, is equal to the sum of $2,500 plus $417 for each kilowatt hour of traction battery capacity in excess of 4 kilowatt hours. The amount of credit allowed depends on the gross vehicle weight rating. The credit phases out over the second calendar quarter following the calendar quarter in which at least 250,000 qualifying vehicle have been sold for use in the U.S. A credit allowed under Code Sec. 30D means no credit will be allowed for that vehicle under Code Sec. 30.

  The credit applies to qualified vehicles which otherwise meet the requirements of Code Sec. 30D and are placed into service by the taxpayer in a tax year beginning after December 31, 2008, and acquired by the taxpayer on or before December 31, 2009.

  The guidance provides when the certification is permitted by the vehicle manufacturer and when a purchaser may rely on the manufacturer's certification. The content required of the certification is addressed and includes a listing of statements pertinent to the identification and capacity of the vehicle. Special requirements pertain to passenger vehicles, low speed vehicles, and light trucks. The IRS will review and acknowledge the certification presented by a manufacturer. Manufacturers are required to report quarterly, under penalty of perjury, on the number of vehicles sold. Failure by the manufacturer to file a timely report may cause withdrawal by the IRS of the acknowledgment of the manufacturer's certification and purchasers will not be entitled to rely on the manufacturer's certification for purposes of the credit.

Notice 2009-54, 2009FED ¶46,404

Other References:

 
Code Sec. 30D

  CCH Reference - 2009FED ¶4059P.021

  CCH Reference - 2009FED ¶4059P.023

  Tax Research Consultant

  CCH Reference - TRC INDIV: 58,002
CCH Reference - TRC INDIV: 58,008