IRS issues guidance and updates frequently asked questions related to new, previously owned and qualified commercial clean vehicle credits

IR-2023-18, Feb. 3, 2023

WASHINGTON — The Internal Revenue Service today issued Notice 2023-16 PDF that modifies 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.

Today's guidance modifies Notice 2023-01 PDF by changing the vehicle classification standard by which vans, sport utility vehicles, pickup trucks and other vehicles are defined.

Fact Sheet 2023-4 PDF 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

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

More information about reliance is available.

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