BY THE NUMBERS Electric Vehicle Tax Credits – First Impressions By Leon M. (Lonnie) Rogers, CPA/ABV/CFF, Tetrick & Bartlett, PLLC he Inflation Reduction Act of 2022 introduced a complex set of requirements for obtaining the tax credit for clean vehicles. We will focus on electric vehicles, other clean vehicles (fuel cells) and commercial clean vehicles beyond the scope of this article. A new clean vehicle is defined as a motor vehicle that satisfies the following eight requirements: 1. The original used must commence with the taxpayer; 2.Not purchased for resale; 3.Assembled by a qualified manufacturer; 4.Meet title II of the Clean Air Act requirements; 5.Have a GVW of less than 14,000 pounds; 6.Have significant propulsion from an electric motor with a battery capacity equal to or greater Than seven-kilowatt hours and is capable of being recharged from an external source; 7. Final assembly must occur within North America; and 8. The seller must report certain information to the taxpayer and the Secretary of the Treasury. The following questions for your customers must be answered for electric vehicles purchased after August 16, 2022: • Is the new vehicle assembled in North America? • If yes, has the manufacturer reached the 200,000-unit cap on credits? • If no, ensure the EV is listed on the Department of Energy’s list of electric vehicles with final assembly in North America. • The old rules apply if the vehicle was purchased or a written binding contract existed before August 16, 2022. Additional items are triggered on January 1, 2023: • The 200,000-unit cap expires, allowing all manufacturers that meet the North American assembly and approval by the Department of Energy’s list of electric vehicles with final assembly in North America. T wvcar.com 20 WVADA
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