TSCPA News

IRS Issues Guidance and Updates FAQs on Commercial Clean Vehicle Credits

February 3, 2023

The IRS recently issued Notice 2023-16, modifying 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.

The 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

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