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136 STAT. 1962 PUBLIC LAW 117–169—AUG. 16, 2022 (4) TRANSFER OF CREDIT.—The amendments made by sub- section (g) shall apply to vehicles placed in service after December 31, 2023. (5) ELIMINATION OF MANUFACTURER LIMITATION.—The amendment made by subsection (d) shall apply to vehicles sold after December 31, 2022. (l) TRANSITION RULE.—Solely for purposes of the application of section 30D of the Internal Revenue Code of 1986, in the case of a taxpayer that— (1) after December 31, 2021, and before the date of enact- ment of this Act, purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle (as defined in section 30D(d)(1) of the Internal Revenue Code of 1986, as in effect on the day before the date of enactment of this Act), and (2) placed such vehicle in service on or after the date of enactment of this Act, such taxpayer may elect (at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary’s dele- gate, may prescribe) to treat such vehicle as having been placed in service on the day before the date of enactment of this Act. SEC. 13402. CREDIT FOR PREVIOUSLY-OWNED CLEAN VEHICLES. (a) IN GENERAL.—Subpart A of part IV of subchapter A of chapter 1 is amended by inserting after section 25D the following new section: ‘‘SEC. 25E. PREVIOUSLY-OWNED CLEAN VEHICLES. ‘‘(a) ALLOWANCE OF CREDIT.—In the case of a qualified buyer who during a taxable year places in service a previously-owned clean vehicle, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the lesser of— ‘‘(1) $4,000, or ‘‘(2) the amount equal to 30 percent of the sale price with respect to such vehicle. ‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED GROSS INCOME.— ‘‘(1) IN GENERAL.—No credit shall be allowed under sub- section (a) for any taxable year if— ‘‘(A) the lesser of— ‘‘(i) the modified adjusted gross income of the tax- payer for such taxable year, or ‘‘(ii) the modified adjusted gross income of the tax- payer for the preceding taxable year, exceeds ‘‘(B) the threshold amount. ‘‘(2) THRESHOLD AMOUNT.—For purposes of paragraph (1)(B), the threshold amount shall be— ‘‘(A) in the case of a joint return or a surviving spouse (as defined in section 2(a)), $150,000, ‘‘(B) in the case of a head of household (as defined in section 2(b)), $112,500, and ‘‘(C) in the case of a taxpayer not described in subpara- graph (A) or (B), $75,000. ‘‘(3) MODIFIED ADJUSTED GROSS INCOME.—For purposes of this subsection, the term ‘modified adjusted gross income’ means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. Definition. 26 USC 25E. Applicability. Effective dates. 26 USC 30D note. VerDate Sep 11 2014 15:35 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00146 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw