Notice 2023-16: Updated FAQs for clean vehicle credit under section 30D
IRS Notice 2023-16 modifies definitions of certain vehicle classifications under section 30D
Notice 2023-16 modifies definitions of certain vehicle classifications under section 30D
The IRS today released an advance version of Notice 2023-16 [PDF 85 KB] that modifies the definitions of certain vehicle classifications for the new, previously owned and qualified commercial clean vehicle credits under section 30D, as amended by Pub. L. No. 117-169 (commonly called the “Inflation Reduction Act of 2022” (IRA)).
As explained in the related IRS release—IR-2023-18 (February 3, 2022)—today's guidance modifies Notice 2023-01 [PDF 118 KB] released at the end of last year (read TaxNewsFlash) by changing the vehicle classification standard by which vans, sport utility vehicles, pickup trucks and other vehicles are defined.
As a result of Notice 2023-16, the IRS updated the related “frequently asked questions” (FAQs) [PDF 424 KB] for these credits.
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
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