# Notice 2023-1: Part III – Administrative, Procedural, and Miscellaneous Certain Definitions of Terms in Section 30D Clean Vehicle Credit > Federal · IRS notices · In force URL: https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_1 ## Section - **Citation:** Notice 2023-1 - **Heading:** Part III – Administrative, Procedural, and Miscellaneous Certain Definitions of Terms in Section 30D Clean Vehicle Credit - **Jurisdiction:** Federal - **Kind:** IRS notices - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Internal Revenue Bulletin / IRB 2023 / Notice / Notice 2023-1 ## Text Part III – Administrative, Procedural, and Miscellaneous Certain Definitions of Terms in Section 30D Clean Vehicle Credit Notice 2023-1 SECTION 1. PURPOSE This notice informs taxpayers that the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) intend to propose regulations under § 30D of the Internal Revenue Code (Code) (forthcoming proposed regulations) addressing the definitions of certain terms relevant to the requirements of the clean vehicle credit available under § 30D (§ 30D credit).1 SECTION 2. BACKGROUND Section 13401 of Public Law 117-169, 136 Stat. 1818 (August 16, 2022), commonly known as the Inflation Reduction Act of 2022 (IRA), amended § 30D. In general, the amendments made by § 13401 of the IRA to § 30D apply to vehicles placed in service after December 31, 2022, except as provided in § 13401(k)(2) through (5) of the IRA. As amended by § 13401(b) of the IRA, § 30D(d)(1)(G) requires, as of August 17, 2022, any vehicle eligible for the § 30D credit to undergo final assembly in North 1 Unless otherwise specified, all “section” or “§” references are to sections of the Code. 2 America. Section 30D(d)(5) defines “final assembly” as the process by which a manufacturer produces a new clean vehicle at, or through the use of, a plant, factory, or other place from which the vehicle is delivered to a dealer or importer with all component parts necessary for the mechanical operation of the vehicle included with the vehicle, whether or not the component parts are permanently installed in or on the vehicle. New § 30D(f)(10)(A) provides that no § 30D credit is allowed 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 hicle, whether or not the component parts are permanently installed in or on the vehicle. New § 30D(f)(10)(A) provides that no § 30D credit is allowed 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. New § 30D(f)(10)(B) provides that the threshold amount shall be (i) in the case of a joint return or a surviving spouse (as defined in § 2(a)), $300,000, (ii) in the case of a head of household (as defined in § 2(b)), $225,000, and (iii) in the case of any other taxpayer, $150,000. New § 30D(f)(10)(C) defines “modified adjusted gross income” as adjusted gross income increased by any amount excluded from gross income under § 911, 931, or 933. New § 30D(f)(11)(A) provides that no § 30D credit is allowed for a vehicle with a manufacturer's suggested retail price in excess of the applicable limitation. New § 30D(f)(11)(B) provides that the applicable limitation for each vehicle classification is as follows: in the case of a van, $80,000; in the case of a sport utility vehicle, $80,000; in the case of a pickup truck, $80,000; and in the case of any other vehicle, $55,000. New § 30D(f)(11)(C) authorizes the Secretary of the Treasury or her delegate (Secretary) to prescribe such regulations or other guidance as the Secretary determines necessary to determine vehicle classifications using criteria similar to that employed by the 3 Environmental Protection Agency and the Department of the Energy to determine size and class of vehicles. SECTION 3. GUIDANCE TO BE ISSUED The Treasury Department and the IRS intend to issue the forthcoming proposed regulations to address the amendments made to § 30D by the IRA. The forthcoming proposed regulations will include definitions of the following terms, which are relevant for new clean vehicles placed in service after December 31, 2022: 1. Final Assembly 2 and class of vehicles. SECTION 3. GUIDANCE TO BE ISSUED The Treasury Department and the IRS intend to issue the forthcoming proposed regulations to address the amendments made to § 30D by the IRA. The forthcoming proposed regulations will include definitions of the following terms, which are relevant for new clean vehicles placed in service after December 31, 2022: 1. Final Assembly 2. North America 3. Manufacturer’s Suggested Retail Price 4. Vehicle Classifications for vans, sport utility vehicles, pickup trucks, and other vehicles 5. Placed in service In addition, the forthcoming proposed regulations will provide guidance regarding the critical mineral and battery component requirements under § 30D(e).2 The remainder of this section 3 describes a subset of the expected content of the forthcoming proposed regulations. .01 Final Assembly For purposes of § 30D(d)(5), “final assembly” means the process by which a manufacturer produces a new clean vehicle at, or through the use of, a plant, factory, or other place from which the vehicle is delivered to a dealer or importer with all component parts necessary for the mechanical operation of the vehicle included with 2 Section 4 of this notice confirms that the publication of this notice is not the publication of proposed guidance with respect to the critical mineral and battery component requirements under § 30D(e). 4 the vehicle, whether or not the component parts are permanently installed in or on the vehicle. To establish where final assembly of a new clean vehicle occurred, the taxpayer may rely on the following information: (1) the vehicle’s plant of manufacture as reported in the vehicle identification number pursuant to 49 CFR 565; or (2) the final assembly point reported on the label affixed to the vehicle as described in 49 CFR 583.5(a)(3). .02 North America For purposes of § 30D(d)(1)(G), “North America” means the territory of the United States, Canada, and Mexico as defined in 19 C.F.R llowing information: (1) the vehicle’s plant of manufacture as reported in the vehicle identification number pursuant to 49 CFR 565; or (2) the final assembly point reported on the label affixed to the vehicle as described in 49 CFR 583.5(a)(3). .02 North America For purposes of § 30D(d)(1)(G), “North America” means the territory of the United States, Canada, and Mexico as defined in 19 C.F.R. part 182, Appendix A, § 1(1). .03 Manufacturer’s Suggested Retail Price For purposes of § 30D(f)(11)(A), “manufacturer’s suggested retail price” means the sum of: (A) the retail price of the automobile suggested by the manufacturer as described in 15 U.S.C. 1232(f)(1); and (B) the retail delivered price suggested by the manufacturer for each accessory or item of optional equipment, physically attached to such automobile at the time of its delivery to the dealer, which is not included within the price of such automobile as stated pursuant to 15 U.S.C. 1232(f)(1), as described in 15 U.S.C. 1232(f)(2). This information is reported on the label that is affixed to the windshield or side window of the vehicle, as described in 15 U.S.C. 1232. .04 Vehicle Classifications For purposes of § 30D(f)(11)(B), the applicable limitation for each vehicle classification is as follows: (A) in the case of a van, $80,000; (B) in the case of a sport 5 utility vehicle, $80,000; (C) in the case of a pickup truck, $80,000; and (D) in the case of any other vehicle, $55,000. For purposes of § 30D(f)(11)(B), a vehicle’s vehicle classification is to be determined consistent with the rules and definitions provided in 40 CFR 600.002 for vans, sport utility vehicles, and pickup trucks. A vehicle described in § 30D(f)(11)(B)(iv) is a vehicle that is not considered a van, sport utility vehicle, or pickup truck consistent with the rules and definitions provided in 40 CFR 600.002 oses of § 30D(f)(11)(B), a vehicle’s vehicle classification is to be determined consistent with the rules and definitions provided in 40 CFR 600.002 for vans, sport utility vehicles, and pickup trucks. A vehicle described in § 30D(f)(11)(B)(iv) is a vehicle that is not considered a van, sport utility vehicle, or pickup truck consistent with the rules and definitions provided in 40 CFR 600.002. .05 Placed in Service For purposes of the § 30D credit, a new clean vehicle is considered to be placed in service on the date the taxpayer takes possession of the vehicle. SECTION 4. PROPOSED GUIDANCE FOR CRITICAL MINERAL AND BATTERY COMPONENT REQUIREMENTS For purposes of § 30D(e)(3)(B), the publication of this notice is not the publication of proposed guidance with respect to the critical mineral and battery component requirements under § 30D(e) and does not trigger the applicability of the requirements. The Treasury Department and the IRS will explicitly identify when they have published proposed guidance with respect to the critical mineral and battery component requirements under § 30D(e). SECTION 5. DRAFTING INFORMATION The principal author of this notice is the Office of Associate Chief Counsel (Passthroughs & Special Industries). However, other personnel from the Treasury Department and the IRS participated in its development. For further information regarding this notice, call the energy security guidance contact number at (202) 317- 5254 (not a toll-free call). ## Nearby sections - [Notice 2023-1 Part III – Administrative, Procedural, and Miscellaneous Certain Definitions of Terms in Section 30D Clean Vehicle Credit](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_1.md) - [Notice 2023-2 Initial Guidance Regarding the Application of the Excise Tax on Repurchases of Corporate Stock under Section 4501 of the Internal Revenue Code](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_2.md) - [Notice 2023-3 2023 Standard Mileage Rates](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_3.md) - [Notice 2023-4 Administrative, Procedural, and Miscellaneous 26 CFR 54.9816-6T: Calculating the qualifying payment amounts in 2023](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_4.md) - [Notice 2023-5 Part III --- Administrative, Miscellaneous, and Procedural Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_5.md) - [Notice 2023-6 Sustainable Aviation Fuel Credit; Registration; Certificates; Request for Public Comments](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_6.md) - [Notice 2023-7 Initial Guidance Regarding the Application of the Corporate Alternative Minimum Tax under Sections 55, 56A, and 59 of the Internal Revenue Code](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_7.md) - [Notice 2023-8 Additional Guidance Related to Transfers of Publicly Traded Partnership Interests under Section 1446(f)](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_8.md) - [Notice 2023-9 Part III – Administrative, Procedural, and Miscellaneous Section 45W Commercial Clean Vehicles and Incremental Cost for 2023](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_9.md) - [Notice 2023-11 Part III - Administrative, Procedural, and Miscellaneous Foreign Financial Institution Temporary U.S. Taxpayer Identification Number Relief](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_11.md) - [Notice 2023-12 Part III --- Administrative, Miscellaneous, and Procedural Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_12.md) - [Notice 2023-16 Part III – Administrative, Procedural, and Miscellaneous Certain Definitions of Terms in Section 30D Clean Vehicle Credit](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_16.md) - [Notice 2023-17 Initial Guidance Establishing Program to Allocate Environmental Justice Solar and Wind Capacity Limitation Under Section 48(e)](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_17.md) - [Notice 2023-18 Initial Guidance Establishing Qualifying Advanced Energy Project Credit Allocation Program Under Section 48C(e)](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_18.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_1. 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