Special rules
(1) Basis reduction
(1)Basis reduction#
For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed (determined without regard to subsection (c)).
(2)No double benefit∀ 1#
The amount of any deduction or other credit allowable under this chapter for a vehicle for which a credit is allowable under subsection (a) shall be reduced by the amount of credit allowed under such subsection for such vehicle (determined without regard to subsection (c)).
(3)Repealed. Pub. L. 117–169, title I, § 13401(g)(2)(B)(i) , Aug. 16, 2022 , 136 Stat. 1960 ]#
(4)Property used outside United States not qualified#
No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1).
(5)Recapture#
The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.
(6)Election not to take credit#
No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.
(7)Interaction with air quality and motor vehicle safety standards#
A vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with—
(A) the applicable provisions of the Clean Air Act for the applicable make and model year of the vehicle (or applicable air quality provisions of State law in the case of a State which has adopted such provision under a waiver under section 209(b) of the Clean Air Act), and
(B) the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code.
(8)One credit per vehicle#
In the case of any vehicle, the credit described in subsection (a) shall only be allowed once with respect to such vehicle, as determined based upon the vehicle identification number of such vehicle, including any vehicle with respect to which the taxpayer elects the application of subsection (g).
(9)VIN requirement#
No credit shall be allowed under this section with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year.
(10)Limitation based on modified adjusted gross income∀ 2#
(A) In general No credit shall be allowed under subsection (a) for any taxable year if— (i) the lesser of— (I) the modified adjusted gross income of the taxpayer for such taxable year, or (II) the modified adjusted gross income of the taxpayer for the preceding taxable year, exceeds (ii) the threshold amount.
(B) Threshold amount For purposes of subparagraph (A)(ii), the threshold amount shall be— (i) in the case of a joint return or a surviving spouse (as defined in section 2(a)), $300,000, (ii) in the case of a head of household (as defined in section 2(b)), $225,000, and (iii) in the case of a taxpayer not described in clause (i) or (ii), $150,000.
(C) Modified adjusted gross income For purposes of this paragraph, the term “modified adjusted gross income” means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.
(11)Manufacturer’s suggested retail price limitation∀ 4#
(A) In general No credit shall be allowed under subsection (a) for a vehicle with a manufacturer’s suggested retail price in excess of the applicable limitation.
(B) Applicable limitation For purposes of subparagraph (A), the applicable limitation for each vehicle classification is as follows: (i) Vans In the case of a van, $80,000. (ii) Sport utility vehicles In the case of a sport utility vehicle, $80,000. (iii) Pickup trucks In the case of a pickup truck, $80,000. (iv) Other In the case of any other vehicle, $55,000.
(C) Regulations and guidance For purposes of this paragraph, the Secretary shall prescribe such regulations or other guidance as the Secretary determines necessary for determining vehicle classifications using criteria similar to that employed by the Environmental Protection Agency and the Department of the Energy to determine size and class of vehicles.