What is the current assessment of the likelihood of Tesla vehicles again qualifying for the the $7,500 US federal government tax credit or possibly $10,000 if including made in America provision? What purchase/pickup date would one have to have to qualify for the credit? I've seen various thoughts on whether that would be retroactive to late May, the date the legislation passes, or not until January 1, 2022. Assuming it could go into effect in July/August (passing this summer) why would anyone be purchasing a car now unless literally have nothing else to drive, his or her tax liability won't require the credit, certain it will take months to get the car with the increased demand the credit will drive, and/or Tesla will generally raise the price to offset much/all of the credit? I am currently in the 8 - 12 week window (placed M3 order at end of May) and want the car now but can't imagine my frustration if I had waited a couple of weeks/month and would have had a massive tax benefit.
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2021 EV Tax Credit
- Thread starter DLK1974VA
- Start date
The BBB text based on the new framework is available. The EV portion is the "House version" referred to above. The "Senate version" has not been discussed since May.
H.R.5376–Build Back Better Act
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You should really release the hold, unless you just don't want the model 3 ANYTIME soon. (Or you ordered way early that it will deliver this year). It's based on delivery date and not order. If you ordered recently you should put yourself off hold so you're still in queue.
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Sorry formatting is screwed up but better than nothing. This is the current House draft just released.
PART 4—GREENING THE FLEET AND
13 ALTERNATIVE VEHICLES
14 SEC. 136401. REFUNDABLE NEW QUALIFIED PLUG-IN ELEC15
TRIC DRIVE MOTOR VEHICLE CREDIT FOR IN16
DIVIDUALS.
17 (a) IN GENERAL.—Subpart C of part IV of sub18
chapter A of chapter 1 is amended by inserting after sec19
tion 36B the following new section:
20 ‘‘SEC. 36C. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE
21 MOTOR VEHICLES.
22 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in23
dividual, there shall be allowed as a credit against the tax
24 imposed by this subtitle for the taxable year an amount
25 equal to the sum of the credit amounts determined under
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1 subsection (b) with respect to each new qualified plug-in
2 electric drive motor vehicle placed in service by the tax3
payer during the taxable year.
4 ‘‘(b) PER VEHICLE DOLLAR LIMITATION.—
5 ‘‘(1) IN GENERAL.—The amount determined
6 under this subsection with respect to any new quali7
fied plug-in electric drive motor vehicle is the sum
8 of the amounts determined under paragraphs (2)
9 through (5) with respect to such vehicle (not to ex10
ceed 50 percent of the purchase price of such vehi11
cle).
12 ‘‘(2) BASE AMOUNT.—The amount determined
13 under this paragraph is $4,000.
14 ‘‘(3) BATTERY CAPACITY.—In the case of a new
15 qualified plug-in electric drive motor vehicle, the
16 amount determined under this paragraph is $3,500
17 if—
18 ‘‘(A) in the case of a vehicle placed in serv19
ice before January 1, 2027, such vehicle draws
20 propulsion energy from a battery with not less
21 than 40 kilowatt hours of capacity, and
22 ‘‘(B) in the case of a vehicle placed in serv23
ice after December 31, 2026, such vehicle
24 draws propulsion energy from a battery with
25 not less than 50 kilowatt hours of capacity.
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1 ‘‘(4) DOMESTIC ASSEMBLY.—In the case of a
2 new qualified plug-in vehicle which satisfies the do3
mestic assembly qualifications, the amount deter4
mined under this paragraph is $4,500.
5 ‘‘(5) DOMESTIC CONTENT.—In the case of a
6 new qualified plug-in vehicle which satisfies domestic
7 content qualifications, the amount determined under
8 this paragraph is $500.
9 ‘‘(c) LIMITATION BASED ON MODIFIED ADJUSTED
10 GROSS INCOME.—
11 ‘‘(1) IN GENERAL.—The amount of the credit
12 allowable under subsection (a) shall be reduced (but
13 not below zero) by $200 for each $1,000 (or fraction
14 thereof) by which the taxpayer’s modified adjusted
15 gross income exceeds the threshold amount. For
16 purposes of the preceding sentence, the term ‘modi17
fied adjusted gross income’ means adjusted gross in18
come increased by any amount excluded from gross
19 income under section 911, 931, or 933.
20 ‘‘(2) SPECIAL RULE FOR DETERMINATION OF
21 MODIFIED ADJUSTED GROSS INCOME.—The modified
22 adjusted gross income of the taxpayer that is taken
23 into account for purposes of paragraph (1) shall be
24 the lesser of—
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1 ‘‘(A) the modified adjusted gross income
2 for the taxable year in which the credit is
3 claimed, or
4 ‘‘(B) the modified adjusted gross income
5 for the immediately preceding taxable year.
6 ‘‘(3) THRESHOLD AMOUNT.—For purposes of
7 paragraph (1), the term ‘threshold amount’ means—
8 ‘‘(A) $800,000 in the case of a joint return
9 or surviving spouse (half such amount for mar10
ried filing separately),
11 ‘‘(B) $600,000 in the case of a head of
12 household, and
13 ‘‘(C) $400,000 in any other case.
14 ‘‘(d) MANUFACTURER’S SUGGESTED RETAIL PRICE
15 LIMITATION.—
16 ‘‘(1) IN GENERAL.—No credit shall be allowed
17 under subsection (a) for a vehicle with a manufac18
turer’s suggested retail price in excess of the appli19
cable limitation.
20 ‘‘(2) APPLICABLE LIMITATION.—For purposes
21 of paragraph (1), the applicable limitation for each
22 vehicle classification is as follows:
23 ‘‘(A) SEDANS.—In the case of a sedan,
24 $55,000.
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1 ‘‘(B) VANS.—In the case of a van,
2 $64,000.
3 ‘‘(C) SPORT UTILITY VEHICLES.—In the
4 case of a sport utility vehicle, $69,000.
5 ‘‘(D) PICKUP TRUCKS.—In the case of a
6 pickup truck, $74,000.
7 ‘‘(3) REGULATIONS.—For purposes of this sub8
section, the Secretary shall prescribe regulations for
9 determining vehicle classifications using criteria
10 similar to that employed by the Environmental Pro11
tection Agency and the Department of Energy to de12
termine size and class of vehicles.
13 ‘‘(e) NEW QUALIFIED PLUG-IN ELECTRIC DRIVE
14 MOTOR VEHICLE.—For purposes of this section—
15 ‘‘(1) IN GENERAL.—The term ‘new qualified
16 plug-in electric drive motor vehicle’ means a motor
17 vehicle—
18 ‘‘(A) the original use of which commences
19 with the taxpayer,
20 ‘‘(B) which is acquired for use by the tax21
payer and not for resale,
22 ‘‘(C) which is made by a qualified manu23
facturer,
24 ‘‘(D) which is treated as a motor vehicle
25 for purposes of title II of the Clean Air Act,
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1 ‘‘(E) which has a gross vehicle weight rat2
ing of less than 14,000 pounds,
3 ‘‘(F) which is propelled to a significant ex4
tent by an electric motor which draws electricity
5 from a battery which—
6 ‘‘(i) has a capacity of—
7 ‘‘(I) in the case of a vehicle
8 placed in service in 2022 or 2023, not
9 less than 7 kilowatt hours, and
10 ‘‘(II) in the case of a vehicle
11 placed in service after 2023, not less
12 than 10 kilowatt hours, and
13 ‘‘(ii) is capable of being recharged
14 from an external source of electricity,
15 ‘‘(G) for which, in the case of a vehicle
16 placed into service after December 31, 2026,
17 final assembly is within the United States, and
18 ‘‘(H) is not of a character subject to an al19
lowance for depreciation.
20 ‘‘(2) MOTOR VEHICLE.—The term ‘motor vehi21
cle’ means any vehicle which is manufactured pri22
marily for use on public streets, roads, and highways
23 (not including a vehicle operated exclusively on a rail
24 or rails) and which has at least 4 wheels.
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1 ‘‘(3) QUALIFIED MANUFACTURER.—The term
2 ‘qualified manufacturer’ means any manufacturer
3 (within the meaning of the regulations prescribed by
4 the Administrator of the Environmental Protection
5 Agency for purposes of the administration of title II
6 of the Clean Air Act (42 U.S.C. 7521 et seq.) which
7 enters into a written agreement with the Secretary
8 under which such manufacturer agrees—
9 ‘‘(A) to ensure that each vehicle manufac10
tured by such manufacturer after the later of
11 the date on which such agreement takes effect
12 or December 31, 2021, and that meets the re13
quirements of subparagraphs (D), (E), and (F)
14 of paragraph (1) and paragraph (6) of sub15
section (e) is labeled with a unique vehicle iden16
tification number, and
17 ‘‘(B) to make periodic written reports to
18 the Secretary (at such times and in such man19
ner as the Secretary may provide) providing
20 such vehicle identification numbers and such
21 other information related to such vehicle as the
22 Secretary may require.
23 ‘‘(4) BATTERY CAPACITY.—The term ‘capacity’
24 means, with respect to any battery, the quantity of
25 electricity which the battery is capable of storing, ex-
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1 pressed in kilowatt hours, as measured from a 100
2 percent state of charge to a 0 percent state of
3 charge.
4 ‘‘(f) SPECIAL RULES.—
5 ‘‘(1) BASIS REDUCTION.—For purposes of this
6 subtitle, the basis of any property for which a credit
7 is allowable under subsection (a) shall be reduced by
8 the amount of such credit so allowed.
9 ‘‘(2) NO DOUBLE BENEFIT.—The amount of
10 any deduction or other credit allowable under this
11 chapter for a vehicle for which a credit is allowable
12 under subsection (a) shall be reduced by the amount
13 of credit allowed under such subsection for such ve14
hicle.
15 ‘‘(3) PROPERTY USED OUTSIDE UNITED STATES
16 NOT QUALIFIED.—No credit shall be allowable under
17 subsection (a) with respect to any property referred
18 to in section 50(b)(1).
19 ‘‘(4) RECAPTURE.—The Secretary shall, by reg20
ulations, provide for recapturing the benefit of any
21 credit allowable under subsection (a) with respect to
22 any property which ceases to be property eligible for
23 such credit.
24 ‘‘(5) ELECTION NOT TO TAKE CREDIT.—No
25 credit shall be allowed under subsection (a) for any
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1 vehicle if the taxpayer elects to not have this section
2 apply to such vehicle.
3 ‘‘(6) INTERACTION WITH AIR QUALITY AND
4 MOTOR VEHICLE SAFETY STANDARDS.—A vehicle
5 shall not be considered eligible for a credit under
6 this section unless such vehicle is in compliance
7 with—
8 ‘‘(A) the applicable provisions of the Clean
9 Air Act for the applicable make and model year
10 of the vehicle (or applicable air quality provi11
sions of State law in the case of a State which
12 has adopted such provision under a waiver
13 under section 209(b) of the Clean Air Act), and
14 ‘‘(B) the motor vehicle safety provisions of
15 sections 30101 through 30169 of title 49,
16 United States Code.
17 ‘‘(g) CREDIT ALLOWED FOR 2 AND 3-WHEELED
18 PLUG-IN ELECTRIC VEHICLES.—
19 ‘‘(1) IN GENERAL.—In the case of a qualified
20 2- or 3-wheeled plug-in electric vehicle—
21 ‘‘(A) there shall be allowed as a credit
22 against the tax imposed by this subtitle for the
23 taxable year an amount equal to the sum of the
24 applicable amount with respect to each such
25 qualified 2- or 3-wheeled plug-in electric vehicle
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1 placed in service by the taxpayer during the
2 taxable year, and
3 ‘‘(B) the amount of the credit allowed
4 under subparagraph (A) shall be treated as a
5 credit allowed under subsection (a).
6 ‘‘(2) APPLICABLE AMOUNT.—For purposes of
7 paragraph (1), the applicable amount is an amount
8 equal to the lesser of—
9 ‘‘(A) 10 percent of the cost of the qualified
10 2- or 3-wheeled plug-in electric vehicle, or
11 ‘‘(B) $2,500.
12 ‘‘(3) QUALIFIED 2- OR 3-WHEELED PLUG-IN
13 ELECTRIC VEHICLE.—The term ‘qualified 2- or 3-
14 wheeled plug-in electric vehicle’ means any vehicle
15 which—
16 ‘‘(A) has 2 or 3 wheels,
17 ‘‘(B) meets the requirements of subpara18
graphs (A), (B), (C), (E), (F), and (G) of sub19
section (e)(1) (determined by substituting ‘2.5
20 kilowatt hours’ for ‘7 kilowatt hours’ in sub21
paragraph (F)(i)(I) and by substituting ‘2.5 kil22
owatt hours’ for ‘10 kilowatt hours’ in subpara23
graph (F)(i)(II)),
24 ‘‘(C) is manufactured primarily for use on
25 public streets, roads, and highways, and
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1 ‘‘(D) is capable of achieving a speed of 45
2 miles per hour or greater.
3 ‘‘(h) VIN NUMBER REQUIREMENT.—No credit shall
4 be allowed under this section with respect to any vehicle
5 unless the taxpayer includes the vehicle identification
6 number of such vehicle on the return of tax for the taxable
7 year.
8 ‘‘(i) TREATMENT OF CERTAIN POSSESSIONS.—
9 ‘‘(1) PAYMENTS TO POSSESSIONS WITH MIRROR
10 CODE TAX SYSTEMS.—The Secretary shall pay to
11 each possession of the United States which has a
12 mirror code tax system amounts equal to the loss (if
13 any) to that possession by reason of the application
14 of the provisions of this section (determined without
15 regard to this subsection). Such amounts shall be
16 determined by the Secretary based on information
17 provided by the government of the respective posses18
sion.
19 ‘‘(2) PAYMENTS TO OTHER POSSESSIONS.—The
20 Secretary shall pay to each possession of the United
21 States which does not have a mirror code tax system
22 amounts estimated by the Secretary as being equal
23 to the aggregate benefits (if any) that would have
24 been provided to residents of such possession by rea25
son of the provisions of this section if a mirror code
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1 tax system had been in effect in such possession.
2 The preceding sentence shall not apply unless the re3
spective possession has a plan which has been ap4
proved by the Secretary under which such possession
5 will promptly distribute such payments to its resi6
dents.
7 ‘‘(3) MIRROR CODE TAX SYSTEM; TREATMENT
8 OF PAYMENTS.—Rules similar to the rules of para9
graphs (4) and (5) of section 21(h) shall apply for
10 purposes of this section.
11 ‘‘(j) ASSEMBLY AND CONTENT QUALIFICATIONS.—
12 For purposes of this section—
13 ‘‘(1) DOMESTIC ASSEMBLY QUALIFICATIONS.—
14 The term ‘domestic assembly qualifications’ means,
15 with respect to any new qualified plug-in electric ve16
hicle, that the final assembly of such vehicle occurs
17 at a plant, factory, or other place which is operating
18 under a collective bargaining agreement negotiated
19 by an employee organization (as defined in section
20 412(c)(4)), determined in a manner consistent with
21 section 7701(a)(46).
22 ‘‘(2) DOMESTIC CONTENT QUALIFICATIONS.—
23 The term ‘domestic content qualifications’ means,
24 with respect to any model of a new qualified plug25
in electric vehicle, that vehicles of that model—
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1 ‘‘(A) are assembled by a manufacturer
2 which utilizes not less than 50 percent domestic
3 content in the component parts for final assem4
bly of such vehicles, and
5 ‘‘(B) are powered by battery cells which
6 are manufactured in the United States (with
7 suchbattery cells to be included for purposes of
8 the requirement described in subparagraph
9 (A)), as certified by the manufacturer, at such
10 time, and in such form and manner, as the Sec11
retary may prescribe.
12 ‘‘(3) FINAL ASSEMBLY.—The term ‘final assem13
bly’ means the process by which a manufacturer pro14
duces a new qualified plug-in electric vehicle at, or
15 through the use of, a plant, factory, or other place
16 from which the vehicle is delivered to a dealer or im17
porter with all component parts necessary for the
18 mechanical operation of the vehicle included with the
19 vehicle, whether or not the component parts are per20
manently installed in or on the vehicle.
21 ‘‘(k) TERMINATION.—No credit shall be allowed
22 under this section with respect to any vehicle acquired
23 after December 31, 2031.’’.
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1 (b) TRANSFER OF CREDIT.—Subsection (f) of section
2 36C is amended by adding at the end the following new
3 paragraphs:
4 ‘‘(7) IN GENERAL.—Subject to such regulations
5 or other guidance as the Secretary determines nec6
essary or appropriate, if, with respect to the credit
7 allowed under subsection (a) for any taxable year,
8 the taxpayer elects the application of this subpara9
graph for such taxable year with respect to such
10 credit, the eligible entity specified in such election,
11 and not the taxpayer who has purchased or leased
12 the vehicle, shall be treated as the taxpayer for pur13
poses of this title with respect to such credit.
14 ‘‘(8) ELIGIBLE ENTITY.—For purposes of this
15 paragraph, the term ‘eligible entity’ means, with re16
spect to the vehicle for which the credit is allowed
17 under subsection (a), the dealer which sold such ve18
hicle to the taxpayer and has—
19 ‘‘(A) subject to paragraph (10), registered
20 with the Secretary for purposes of this para21
graph, at such time, and in such form and
22 manner, as the Secretary may prescribe,
23 ‘‘(B) prior to the election described in
24 paragraph (7), disclosed to the taxpayer pur25
chasing such vehicle—
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1 ‘‘(i) the manufacturer’s suggested re2
tail price,
3 ‘‘(ii) the value of the credit allowed or
4 other incentive available for the purchase
5 or lease of such vehicle,
6 ‘‘(iii) all fees associated with the pur7
chase or lease of such vehicle, and
8 ‘‘(iv) the amount provided by the deal9
er to such taxpayer as a condition of the
10 election described in paragraph (7),
11 ‘‘(C) made payment to such taxpayer
12 (whether in cash or in the form of a partial
13 payment or down payment for the purchase of
14 such vehicle) in an amount equal to the credit
15 otherwise allowable to such taxpayer, and
16 ‘‘(D) with respect to any incentive other17
wise available for the purchase of a vehicle for
18 which a credit is allowed under this section, in19
cluding any incentive in the form of a rebate or
20 discount provided by the dealer or manufac21
turer, ensured that—
22 ‘‘(i) the availability or use of such in23
centive shall not limit the ability of a tax24
payer to make an election described in
25 paragraph (7), and
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1 ‘‘(ii) such election shall not limit the
2 value or use of such incentive.
3 ‘‘(9) TIMING.—An election described in para4
graph (7) shall be made by the taxpayer not later
5 than the date on which the vehicle for which the
6 credit is allowed under subsection (a) is purchased.
7 ‘‘(10) REVOCATION OF REGISTRATION.—Upon
8 determination by the Secretary that a dealer has
9 failed to comply with the requirements described in
10 paragraph (8), the Secretary may revoke the reg11
istration (as described in subparagraph (A) of such
12 subparagraph) of such dealer.
13 ‘‘(11) TAX TREATMENT OF PAYMENTS.—With
14 respect to any payment described in paragraph
15 (8)(C), such payment—
16 ‘‘(A) shall not be includible in the gross in17
come of the taxpayer, and
18 ‘‘(B) with respect to the dealer, shall not
19 be deductible under this title.
20 ‘‘(12) ADVANCE PAYMENT TO REGISTERED
21 DEALERS.—
22 ‘‘(A) IN GENERAL.—The Secretary shall
23 establish a program to make advance payments
24 to any eligible entity in an amount equal to the
25 cumulative amount of the credits allowed under
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1 subsection (a) with respect to any vehicles sold
2 by such entity for which an election described
3 in paragraph (1) has been made.
4 ‘‘(B) EXCESSIVE PAYMENTS.—Rules simi5
lar to the rules of section 6417(c)(8) shall apply
6 for purposes of this subparagraph.
7 ‘‘(13) DEALER.—For purposes of this para8
graph, the term ‘dealer’ means a person licensed by
9 a State, the District of Columbia, the Common10
wealth of Puerto Rico, any other territory or posses11
sion of the United States, or an Indian Tribe (as de12
fined in section 4 of the Indian Self-Determination
13 and Education Assistance Act (25 U.S.C. 5304)) to
14 engage in the sale of vehicles.’’.
15 (c) REPEAL OF NONREFUNDABLE NEW QUALIFIED
16 PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE CREDIT.—
17 Subpart B of part IV of subchapter A of chapter 1 is
18 amended by striking section 30D (and by striking the item
19 relating to such section in the table of sections of such
20 subpart).
21 (d) CONFORMING AMENDMENTS.—
22 (1) Section 1016(a)(37) is amended by striking
23 ‘‘section 30D(f)(1)’’ and inserting ‘‘section
24 36C(f)(1)’’.
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1 (2) Section 6211(b)(4)(A) is amended by insert2
ing ‘‘36C,’’ after ‘‘36B,’’.
3 (3) Section 6213(g)(2), as amended by the pre4
ceding provisions of this Act, is amended—
5 (A) in subparagraph (R), by striking
6 ‘‘and’’ at the end,
7 (B) in subparagraph (S), by striking the
8 period at the end and inserting ‘‘, and’’, and
9 (C) by adding at the end the following:
10 ‘‘(T) an omission of a correct vehicle iden11
tification number required under section 36C(f)
12 (relating to credit for new qualified plug-in elec13
tric drive motor vehicles) to be included on a re14
turn.’’.
15 (4) Section 6501(m) is amended by striking
16 ‘‘30D(e)(4)’’ and inserting ‘‘36C(f)(5)’’.
17 (5) Section 166(b)(5)(A)(ii) of title 23, United
18 States Code, is amended by striking ‘‘section
19 30D(d)(1)’’ and inserting ‘‘section 36C(e)(1)’’.
20 (6) Section 1324(b)(2) of title 31, United
21 States Code, is amended by inserting ‘‘36C,’’ after
22 ‘‘36B,’’.
23 (7) The table of sections for subpart C of part
24 IV of subchapter A of chapter 1 is amended by in-
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1 serting after the item relating to section 36B the fol2
lowing new item:
‘‘Sec. 36C. New qualified plug-in electric drive motor vehicles.’’.
3 (e) EFFECTIVE DATES.—
4 (1) The amendments made by subsections (a),
5 (c), and (d) of this section shall apply to vehicles ac6
quired after December 31, 2021.
7 (2) The amendments made by subsection (b)
8 shall apply to vehicles purchased or leased after De9
cember 31, 2022.
10 SEC. 136402. CREDIT FOR PREVIOUSLY-OWNED QUALIFIED
11 PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.
12 (a) IN GENERAL.—Subpart C of part IV of sub13
chapter A of chapter 1, as amended by the preceding pro14
visions of this Act, is amended by inserting after section
15 36C the following new section:
16 ‘‘SEC. 36D. PREVIOUSLY-OWNED QUALIFIED PLUG-IN ELEC17
TRIC DRIVE MOTOR VEHICLES.
18 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of a
19 qualified buyer who during a taxable year places in service
20 a previously-owned qualified plug-in electric drive motor
21 vehicle, there shall be allowed as a credit against the tax
22 imposed by this subtitle for the taxable year an amount
23 equal to the sum of—
24 ‘‘(1) $1,250, plus
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1 ‘‘(2) in the case of a vehicle which draws pro2
pulsion energy from a battery which exceeds 4 kilo3
watt hours of capacity (determined at the time of
4 sale), the lesser of—
5 ‘‘(A) $1,250, and
6 ‘‘(B) the product of $208.50 and such ex7
cess kilowatt hours.
8 ‘‘(b) LIMITATIONS.—
9 ‘‘(1) SALE PRICE.—The credit allowed under
10 subsection (a) with respect to sale of a vehicle shall
11 not exceed 30 percent of the sale price.
12 ‘‘(2) ADJUSTED GROSS INCOME.—The amount
13 which would (but for this paragraph) be allowed as
14 a credit under subsection (a) shall be reduced (but
15 not below zero) by $200 for each $1,000 (or fraction
16 thereof) by which the taxpayer’s adjusted gross in17
come exceeds—
18 ‘‘(A) $150,000 in the case of a joint return
19 or a surviving spouse (as defined in section
20 2(a)),
21 ‘‘(B) $112,500 in the case of a head of
22 household (as defined in section 2(b)), and
23 ‘‘(C) $75,000 in the case of a taxpayer not
24 described in paragraph (1) or (2).
25 ‘‘(c) DEFINITIONS.—For purposes of this section—
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1 ‘‘(1) PREVIOUSLY-OWNED QUALIFIED PLUG-IN
2 ELECTRIC DRIVE MOTOR VEHICLE.—The term ‘pre3
viously-owned qualified plug-in electric drive motor
4 vehicle’ means, with respect to a taxpayer, a motor
5 vehicle—
6 ‘‘(A) the model year of which is at least 2
7 earlier than the calendar year in which the tax8
payer acquires such vehicle,
9 ‘‘(B) the original use of which commences
10 with a person other than the taxpayer,
11 ‘‘(C) which is acquired by the taxpayer in
12 a qualified sale,
13 ‘‘(D) registered by the taxpayer for oper14
ation in a State or possession of the United
15 States, and
16 ‘‘(E) which meets the requirements of sub17
paragraphs (C), (D), (E), (F), and (G) of sec18
tion 36C(e)(1).
19 ‘‘(2) QUALIFIED SALE.—The term ‘qualified
20 sale’ means a sale of a motor vehicle—
21 ‘‘(A) by a seller who holds such vehicle in
22 inventory (within the meaning of section 471)
23 for sale or lease,
24 ‘‘(B) for a sale price not to exceed
25 $25,000, and
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1 ‘‘(C) which is the first transfer since the
2 date of the enactment of this section to a per3
son other than the person with whom the origi4
nal use of such vehicle commenced.
5 ‘‘(3) QUALIFIED BUYER.—The term ‘qualified
6 buyer’ means, with respect to a sale of a motor vehi7
cle, a taxpayer—
8 ‘‘(A) who is an individual,
9 ‘‘(B) who purchases such vehicle for use
10 and not for resale,
11 ‘‘(C) with respect to whom no deduction is
12 allowable with respect to another taxpayer
13 under section 151,
14 ‘‘(D) who has not been allowed a credit
15 under this section for any sale during the 3-
16 year period ending on the date of the sale of
17 such vehicle, and
18 ‘‘(E) who possesses a certificate issued by
19 the seller that certifies—
20 ‘‘(i) that the vehicle is a previously21
owned qualified plug-in electric drive motor
22 vehicle,
23 ‘‘(ii) the vehicle identification number
24 of such vehicle,
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1 ‘‘(iii) the capacity of the battery at
2 time of sale, and
3 ‘‘(iv) such other information as the
4 Secretary may require.
5 ‘‘(4) MOTOR VEHICLE; CAPACITY.—The terms
6 ‘motor vehicle’ and ‘capacity’ have the meaning
7 given such terms in paragraphs (2) and (4) of sec8
tion 36C(e), respectively.
9 ‘‘(d) VIN NUMBER REQUIREMENT.—No credit shall
10 be allowed under subsection (a) with respect to any vehicle
11 unless the taxpayer includes the vehicle identification
12 number of such vehicle on the return of tax for the taxable
13 year.
14 ‘‘(e) APPLICATION OF CERTAIN RULES.—For pur15
poses of this section, rules similar to the rules of para16
graphs (1), (2), (4), (5), (6) and (7) of section 36C(f)
17 shall apply for purposes of this section.
18 ‘‘(f) CERTIFICATE SUBMISSION REQUIREMENT.—
19 The Secretary may require that the issuer of the certifi20
cate described in subsection (c)(3)(E) submit such certifi21
cate to the Secretary at the time and in the manner re22
quired by the Secretary.
23 ‘‘(g) TREATMENT OF CERTAIN POSSESSIONS.—
24 ‘‘(1) PAYMENTS TO POSSESSIONS WITH MIRROR
25 CODE TAX SYSTEMS.—The Secretary shall pay to
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1 each possession of the United States which has a
2 mirror code tax system amounts equal to the loss (if
3 any) to that possession by reason of the application
4 of the provisions of this section. Such amounts shall
5 be determined by the Secretary based on information
6 provided by the government of the respective posses7
sion.
8 ‘‘(2) PAYMENTS TO OTHER POSSESSIONS.—The
9 Secretary shall pay to each possession of the United
10 States which does not have a mirror code tax system
11 amounts estimated by the Secretary as being equal
12 to the aggregate benefits (if any) that would have
13 been provided to residents of such possession by rea14
son of the provisions of this section if a mirror code
15 tax system had been in effect in such possession.
16 The preceding sentence shall not apply unless the re17
spective possession has a plan which has been ap18
proved by the Secretary under which such possession
19 will promptly distribute such payments to its resi20
dents.
21 ‘‘(3) MIRROR CODE TAX SYSTEM; TREATMENT
22 OF PAYMENTS.—Rules similar to the rules of para23
graphs (4) and (5) of section 21(h) shall apply for
24 purposes of this section.
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1 ‘‘(h) TERMINATION.—No credit shall be allowed
2 under this section with respect to any vehicle acquired
3 after December 31, 2031.’’.
4 (b) CONFORMING AMENDMENTS.—
5 (1) Section 6211(b)(4)(A), as amended by the
6 preceding provisions of this Act, is amended by in7
serting ‘‘36D,’’ after ‘‘36C,’’.
8 (2) Section 6213(g)(2), as amended by the pre9
ceding provisions of this Act, is amended—
10 (A) in subparagraph (S), by striking
11 ‘‘and’’ at the end,
12 (B) in subparagraph (T), by striking the
13 period at the end and inserting ‘‘, and’’, and
14 (C) by adding at the end the following:
15 ‘‘(U) an omission of a correct vehicle iden16
tification number required under section
17 36D(d) (relating to credit for previously-owned
18 qualified plug-in electric drive motor vehicles) to
19 be included on a return.’’.
20 (3) Paragraph (2) of section 1324(b) of title
21 31, United States Code, as amended by the pre22
ceding provisions of this Act, is amended by insert23
ing ‘‘36D,’’ after ‘‘36C,’’.
24 (c) CLERICAL AMENDMENT.—The table of sections
25 for subpart C of part IV of subchapter A of chapter 1,
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1 as amended by the preceding provisions of this Act, is
2 amended by inserting after the item relating to section
3 36C the following new item:
‘‘Sec. 36D. Previously-owned qualified plug-in electric drive motor vehicles.’’.
4 (d) EFFECTIVE DATE.—The amendments made by
5 this section shall apply to vehicles acquired after Decem6
ber 31, 2021.
PART 4—GREENING THE FLEET AND
13 ALTERNATIVE VEHICLES
14 SEC. 136401. REFUNDABLE NEW QUALIFIED PLUG-IN ELEC15
TRIC DRIVE MOTOR VEHICLE CREDIT FOR IN16
DIVIDUALS.
17 (a) IN GENERAL.—Subpart C of part IV of sub18
chapter A of chapter 1 is amended by inserting after sec19
tion 36B the following new section:
20 ‘‘SEC. 36C. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE
21 MOTOR VEHICLES.
22 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in23
dividual, there shall be allowed as a credit against the tax
24 imposed by this subtitle for the taxable year an amount
25 equal to the sum of the credit amounts determined under
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1 subsection (b) with respect to each new qualified plug-in
2 electric drive motor vehicle placed in service by the tax3
payer during the taxable year.
4 ‘‘(b) PER VEHICLE DOLLAR LIMITATION.—
5 ‘‘(1) IN GENERAL.—The amount determined
6 under this subsection with respect to any new quali7
fied plug-in electric drive motor vehicle is the sum
8 of the amounts determined under paragraphs (2)
9 through (5) with respect to such vehicle (not to ex10
ceed 50 percent of the purchase price of such vehi11
cle).
12 ‘‘(2) BASE AMOUNT.—The amount determined
13 under this paragraph is $4,000.
14 ‘‘(3) BATTERY CAPACITY.—In the case of a new
15 qualified plug-in electric drive motor vehicle, the
16 amount determined under this paragraph is $3,500
17 if—
18 ‘‘(A) in the case of a vehicle placed in serv19
ice before January 1, 2027, such vehicle draws
20 propulsion energy from a battery with not less
21 than 40 kilowatt hours of capacity, and
22 ‘‘(B) in the case of a vehicle placed in serv23
ice after December 31, 2026, such vehicle
24 draws propulsion energy from a battery with
25 not less than 50 kilowatt hours of capacity.
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1 ‘‘(4) DOMESTIC ASSEMBLY.—In the case of a
2 new qualified plug-in vehicle which satisfies the do3
mestic assembly qualifications, the amount deter4
mined under this paragraph is $4,500.
5 ‘‘(5) DOMESTIC CONTENT.—In the case of a
6 new qualified plug-in vehicle which satisfies domestic
7 content qualifications, the amount determined under
8 this paragraph is $500.
9 ‘‘(c) LIMITATION BASED ON MODIFIED ADJUSTED
10 GROSS INCOME.—
11 ‘‘(1) IN GENERAL.—The amount of the credit
12 allowable under subsection (a) shall be reduced (but
13 not below zero) by $200 for each $1,000 (or fraction
14 thereof) by which the taxpayer’s modified adjusted
15 gross income exceeds the threshold amount. For
16 purposes of the preceding sentence, the term ‘modi17
fied adjusted gross income’ means adjusted gross in18
come increased by any amount excluded from gross
19 income under section 911, 931, or 933.
20 ‘‘(2) SPECIAL RULE FOR DETERMINATION OF
21 MODIFIED ADJUSTED GROSS INCOME.—The modified
22 adjusted gross income of the taxpayer that is taken
23 into account for purposes of paragraph (1) shall be
24 the lesser of—
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1 ‘‘(A) the modified adjusted gross income
2 for the taxable year in which the credit is
3 claimed, or
4 ‘‘(B) the modified adjusted gross income
5 for the immediately preceding taxable year.
6 ‘‘(3) THRESHOLD AMOUNT.—For purposes of
7 paragraph (1), the term ‘threshold amount’ means—
8 ‘‘(A) $800,000 in the case of a joint return
9 or surviving spouse (half such amount for mar10
ried filing separately),
11 ‘‘(B) $600,000 in the case of a head of
12 household, and
13 ‘‘(C) $400,000 in any other case.
14 ‘‘(d) MANUFACTURER’S SUGGESTED RETAIL PRICE
15 LIMITATION.—
16 ‘‘(1) IN GENERAL.—No credit shall be allowed
17 under subsection (a) for a vehicle with a manufac18
turer’s suggested retail price in excess of the appli19
cable limitation.
20 ‘‘(2) APPLICABLE LIMITATION.—For purposes
21 of paragraph (1), the applicable limitation for each
22 vehicle classification is as follows:
23 ‘‘(A) SEDANS.—In the case of a sedan,
24 $55,000.
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1 ‘‘(B) VANS.—In the case of a van,
2 $64,000.
3 ‘‘(C) SPORT UTILITY VEHICLES.—In the
4 case of a sport utility vehicle, $69,000.
5 ‘‘(D) PICKUP TRUCKS.—In the case of a
6 pickup truck, $74,000.
7 ‘‘(3) REGULATIONS.—For purposes of this sub8
section, the Secretary shall prescribe regulations for
9 determining vehicle classifications using criteria
10 similar to that employed by the Environmental Pro11
tection Agency and the Department of Energy to de12
termine size and class of vehicles.
13 ‘‘(e) NEW QUALIFIED PLUG-IN ELECTRIC DRIVE
14 MOTOR VEHICLE.—For purposes of this section—
15 ‘‘(1) IN GENERAL.—The term ‘new qualified
16 plug-in electric drive motor vehicle’ means a motor
17 vehicle—
18 ‘‘(A) the original use of which commences
19 with the taxpayer,
20 ‘‘(B) which is acquired for use by the tax21
payer and not for resale,
22 ‘‘(C) which is made by a qualified manu23
facturer,
24 ‘‘(D) which is treated as a motor vehicle
25 for purposes of title II of the Clean Air Act,
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1 ‘‘(E) which has a gross vehicle weight rat2
ing of less than 14,000 pounds,
3 ‘‘(F) which is propelled to a significant ex4
tent by an electric motor which draws electricity
5 from a battery which—
6 ‘‘(i) has a capacity of—
7 ‘‘(I) in the case of a vehicle
8 placed in service in 2022 or 2023, not
9 less than 7 kilowatt hours, and
10 ‘‘(II) in the case of a vehicle
11 placed in service after 2023, not less
12 than 10 kilowatt hours, and
13 ‘‘(ii) is capable of being recharged
14 from an external source of electricity,
15 ‘‘(G) for which, in the case of a vehicle
16 placed into service after December 31, 2026,
17 final assembly is within the United States, and
18 ‘‘(H) is not of a character subject to an al19
lowance for depreciation.
20 ‘‘(2) MOTOR VEHICLE.—The term ‘motor vehi21
cle’ means any vehicle which is manufactured pri22
marily for use on public streets, roads, and highways
23 (not including a vehicle operated exclusively on a rail
24 or rails) and which has at least 4 wheels.
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1 ‘‘(3) QUALIFIED MANUFACTURER.—The term
2 ‘qualified manufacturer’ means any manufacturer
3 (within the meaning of the regulations prescribed by
4 the Administrator of the Environmental Protection
5 Agency for purposes of the administration of title II
6 of the Clean Air Act (42 U.S.C. 7521 et seq.) which
7 enters into a written agreement with the Secretary
8 under which such manufacturer agrees—
9 ‘‘(A) to ensure that each vehicle manufac10
tured by such manufacturer after the later of
11 the date on which such agreement takes effect
12 or December 31, 2021, and that meets the re13
quirements of subparagraphs (D), (E), and (F)
14 of paragraph (1) and paragraph (6) of sub15
section (e) is labeled with a unique vehicle iden16
tification number, and
17 ‘‘(B) to make periodic written reports to
18 the Secretary (at such times and in such man19
ner as the Secretary may provide) providing
20 such vehicle identification numbers and such
21 other information related to such vehicle as the
22 Secretary may require.
23 ‘‘(4) BATTERY CAPACITY.—The term ‘capacity’
24 means, with respect to any battery, the quantity of
25 electricity which the battery is capable of storing, ex-
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1 pressed in kilowatt hours, as measured from a 100
2 percent state of charge to a 0 percent state of
3 charge.
4 ‘‘(f) SPECIAL RULES.—
5 ‘‘(1) BASIS REDUCTION.—For purposes of this
6 subtitle, the basis of any property for which a credit
7 is allowable under subsection (a) shall be reduced by
8 the amount of such credit so allowed.
9 ‘‘(2) NO DOUBLE BENEFIT.—The amount of
10 any deduction or other credit allowable under this
11 chapter for a vehicle for which a credit is allowable
12 under subsection (a) shall be reduced by the amount
13 of credit allowed under such subsection for such ve14
hicle.
15 ‘‘(3) PROPERTY USED OUTSIDE UNITED STATES
16 NOT QUALIFIED.—No credit shall be allowable under
17 subsection (a) with respect to any property referred
18 to in section 50(b)(1).
19 ‘‘(4) RECAPTURE.—The Secretary shall, by reg20
ulations, provide for recapturing the benefit of any
21 credit allowable under subsection (a) with respect to
22 any property which ceases to be property eligible for
23 such credit.
24 ‘‘(5) ELECTION NOT TO TAKE CREDIT.—No
25 credit shall be allowed under subsection (a) for any
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1 vehicle if the taxpayer elects to not have this section
2 apply to such vehicle.
3 ‘‘(6) INTERACTION WITH AIR QUALITY AND
4 MOTOR VEHICLE SAFETY STANDARDS.—A vehicle
5 shall not be considered eligible for a credit under
6 this section unless such vehicle is in compliance
7 with—
8 ‘‘(A) the applicable provisions of the Clean
9 Air Act for the applicable make and model year
10 of the vehicle (or applicable air quality provi11
sions of State law in the case of a State which
12 has adopted such provision under a waiver
13 under section 209(b) of the Clean Air Act), and
14 ‘‘(B) the motor vehicle safety provisions of
15 sections 30101 through 30169 of title 49,
16 United States Code.
17 ‘‘(g) CREDIT ALLOWED FOR 2 AND 3-WHEELED
18 PLUG-IN ELECTRIC VEHICLES.—
19 ‘‘(1) IN GENERAL.—In the case of a qualified
20 2- or 3-wheeled plug-in electric vehicle—
21 ‘‘(A) there shall be allowed as a credit
22 against the tax imposed by this subtitle for the
23 taxable year an amount equal to the sum of the
24 applicable amount with respect to each such
25 qualified 2- or 3-wheeled plug-in electric vehicle
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1 placed in service by the taxpayer during the
2 taxable year, and
3 ‘‘(B) the amount of the credit allowed
4 under subparagraph (A) shall be treated as a
5 credit allowed under subsection (a).
6 ‘‘(2) APPLICABLE AMOUNT.—For purposes of
7 paragraph (1), the applicable amount is an amount
8 equal to the lesser of—
9 ‘‘(A) 10 percent of the cost of the qualified
10 2- or 3-wheeled plug-in electric vehicle, or
11 ‘‘(B) $2,500.
12 ‘‘(3) QUALIFIED 2- OR 3-WHEELED PLUG-IN
13 ELECTRIC VEHICLE.—The term ‘qualified 2- or 3-
14 wheeled plug-in electric vehicle’ means any vehicle
15 which—
16 ‘‘(A) has 2 or 3 wheels,
17 ‘‘(B) meets the requirements of subpara18
graphs (A), (B), (C), (E), (F), and (G) of sub19
section (e)(1) (determined by substituting ‘2.5
20 kilowatt hours’ for ‘7 kilowatt hours’ in sub21
paragraph (F)(i)(I) and by substituting ‘2.5 kil22
owatt hours’ for ‘10 kilowatt hours’ in subpara23
graph (F)(i)(II)),
24 ‘‘(C) is manufactured primarily for use on
25 public streets, roads, and highways, and
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1 ‘‘(D) is capable of achieving a speed of 45
2 miles per hour or greater.
3 ‘‘(h) VIN NUMBER REQUIREMENT.—No credit shall
4 be allowed under this section with respect to any vehicle
5 unless the taxpayer includes the vehicle identification
6 number of such vehicle on the return of tax for the taxable
7 year.
8 ‘‘(i) TREATMENT OF CERTAIN POSSESSIONS.—
9 ‘‘(1) PAYMENTS TO POSSESSIONS WITH MIRROR
10 CODE TAX SYSTEMS.—The Secretary shall pay to
11 each possession of the United States which has a
12 mirror code tax system amounts equal to the loss (if
13 any) to that possession by reason of the application
14 of the provisions of this section (determined without
15 regard to this subsection). Such amounts shall be
16 determined by the Secretary based on information
17 provided by the government of the respective posses18
sion.
19 ‘‘(2) PAYMENTS TO OTHER POSSESSIONS.—The
20 Secretary shall pay to each possession of the United
21 States which does not have a mirror code tax system
22 amounts estimated by the Secretary as being equal
23 to the aggregate benefits (if any) that would have
24 been provided to residents of such possession by rea25
son of the provisions of this section if a mirror code
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1 tax system had been in effect in such possession.
2 The preceding sentence shall not apply unless the re3
spective possession has a plan which has been ap4
proved by the Secretary under which such possession
5 will promptly distribute such payments to its resi6
dents.
7 ‘‘(3) MIRROR CODE TAX SYSTEM; TREATMENT
8 OF PAYMENTS.—Rules similar to the rules of para9
graphs (4) and (5) of section 21(h) shall apply for
10 purposes of this section.
11 ‘‘(j) ASSEMBLY AND CONTENT QUALIFICATIONS.—
12 For purposes of this section—
13 ‘‘(1) DOMESTIC ASSEMBLY QUALIFICATIONS.—
14 The term ‘domestic assembly qualifications’ means,
15 with respect to any new qualified plug-in electric ve16
hicle, that the final assembly of such vehicle occurs
17 at a plant, factory, or other place which is operating
18 under a collective bargaining agreement negotiated
19 by an employee organization (as defined in section
20 412(c)(4)), determined in a manner consistent with
21 section 7701(a)(46).
22 ‘‘(2) DOMESTIC CONTENT QUALIFICATIONS.—
23 The term ‘domestic content qualifications’ means,
24 with respect to any model of a new qualified plug25
in electric vehicle, that vehicles of that model—
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1 ‘‘(A) are assembled by a manufacturer
2 which utilizes not less than 50 percent domestic
3 content in the component parts for final assem4
bly of such vehicles, and
5 ‘‘(B) are powered by battery cells which
6 are manufactured in the United States (with
7 suchbattery cells to be included for purposes of
8 the requirement described in subparagraph
9 (A)), as certified by the manufacturer, at such
10 time, and in such form and manner, as the Sec11
retary may prescribe.
12 ‘‘(3) FINAL ASSEMBLY.—The term ‘final assem13
bly’ means the process by which a manufacturer pro14
duces a new qualified plug-in electric vehicle at, or
15 through the use of, a plant, factory, or other place
16 from which the vehicle is delivered to a dealer or im17
porter with all component parts necessary for the
18 mechanical operation of the vehicle included with the
19 vehicle, whether or not the component parts are per20
manently installed in or on the vehicle.
21 ‘‘(k) TERMINATION.—No credit shall be allowed
22 under this section with respect to any vehicle acquired
23 after December 31, 2031.’’.
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1 (b) TRANSFER OF CREDIT.—Subsection (f) of section
2 36C is amended by adding at the end the following new
3 paragraphs:
4 ‘‘(7) IN GENERAL.—Subject to such regulations
5 or other guidance as the Secretary determines nec6
essary or appropriate, if, with respect to the credit
7 allowed under subsection (a) for any taxable year,
8 the taxpayer elects the application of this subpara9
graph for such taxable year with respect to such
10 credit, the eligible entity specified in such election,
11 and not the taxpayer who has purchased or leased
12 the vehicle, shall be treated as the taxpayer for pur13
poses of this title with respect to such credit.
14 ‘‘(8) ELIGIBLE ENTITY.—For purposes of this
15 paragraph, the term ‘eligible entity’ means, with re16
spect to the vehicle for which the credit is allowed
17 under subsection (a), the dealer which sold such ve18
hicle to the taxpayer and has—
19 ‘‘(A) subject to paragraph (10), registered
20 with the Secretary for purposes of this para21
graph, at such time, and in such form and
22 manner, as the Secretary may prescribe,
23 ‘‘(B) prior to the election described in
24 paragraph (7), disclosed to the taxpayer pur25
chasing such vehicle—
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1 ‘‘(i) the manufacturer’s suggested re2
tail price,
3 ‘‘(ii) the value of the credit allowed or
4 other incentive available for the purchase
5 or lease of such vehicle,
6 ‘‘(iii) all fees associated with the pur7
chase or lease of such vehicle, and
8 ‘‘(iv) the amount provided by the deal9
er to such taxpayer as a condition of the
10 election described in paragraph (7),
11 ‘‘(C) made payment to such taxpayer
12 (whether in cash or in the form of a partial
13 payment or down payment for the purchase of
14 such vehicle) in an amount equal to the credit
15 otherwise allowable to such taxpayer, and
16 ‘‘(D) with respect to any incentive other17
wise available for the purchase of a vehicle for
18 which a credit is allowed under this section, in19
cluding any incentive in the form of a rebate or
20 discount provided by the dealer or manufac21
turer, ensured that—
22 ‘‘(i) the availability or use of such in23
centive shall not limit the ability of a tax24
payer to make an election described in
25 paragraph (7), and
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1 ‘‘(ii) such election shall not limit the
2 value or use of such incentive.
3 ‘‘(9) TIMING.—An election described in para4
graph (7) shall be made by the taxpayer not later
5 than the date on which the vehicle for which the
6 credit is allowed under subsection (a) is purchased.
7 ‘‘(10) REVOCATION OF REGISTRATION.—Upon
8 determination by the Secretary that a dealer has
9 failed to comply with the requirements described in
10 paragraph (8), the Secretary may revoke the reg11
istration (as described in subparagraph (A) of such
12 subparagraph) of such dealer.
13 ‘‘(11) TAX TREATMENT OF PAYMENTS.—With
14 respect to any payment described in paragraph
15 (8)(C), such payment—
16 ‘‘(A) shall not be includible in the gross in17
come of the taxpayer, and
18 ‘‘(B) with respect to the dealer, shall not
19 be deductible under this title.
20 ‘‘(12) ADVANCE PAYMENT TO REGISTERED
21 DEALERS.—
22 ‘‘(A) IN GENERAL.—The Secretary shall
23 establish a program to make advance payments
24 to any eligible entity in an amount equal to the
25 cumulative amount of the credits allowed under
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1 subsection (a) with respect to any vehicles sold
2 by such entity for which an election described
3 in paragraph (1) has been made.
4 ‘‘(B) EXCESSIVE PAYMENTS.—Rules simi5
lar to the rules of section 6417(c)(8) shall apply
6 for purposes of this subparagraph.
7 ‘‘(13) DEALER.—For purposes of this para8
graph, the term ‘dealer’ means a person licensed by
9 a State, the District of Columbia, the Common10
wealth of Puerto Rico, any other territory or posses11
sion of the United States, or an Indian Tribe (as de12
fined in section 4 of the Indian Self-Determination
13 and Education Assistance Act (25 U.S.C. 5304)) to
14 engage in the sale of vehicles.’’.
15 (c) REPEAL OF NONREFUNDABLE NEW QUALIFIED
16 PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE CREDIT.—
17 Subpart B of part IV of subchapter A of chapter 1 is
18 amended by striking section 30D (and by striking the item
19 relating to such section in the table of sections of such
20 subpart).
21 (d) CONFORMING AMENDMENTS.—
22 (1) Section 1016(a)(37) is amended by striking
23 ‘‘section 30D(f)(1)’’ and inserting ‘‘section
24 36C(f)(1)’’.
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1 (2) Section 6211(b)(4)(A) is amended by insert2
ing ‘‘36C,’’ after ‘‘36B,’’.
3 (3) Section 6213(g)(2), as amended by the pre4
ceding provisions of this Act, is amended—
5 (A) in subparagraph (R), by striking
6 ‘‘and’’ at the end,
7 (B) in subparagraph (S), by striking the
8 period at the end and inserting ‘‘, and’’, and
9 (C) by adding at the end the following:
10 ‘‘(T) an omission of a correct vehicle iden11
tification number required under section 36C(f)
12 (relating to credit for new qualified plug-in elec13
tric drive motor vehicles) to be included on a re14
turn.’’.
15 (4) Section 6501(m) is amended by striking
16 ‘‘30D(e)(4)’’ and inserting ‘‘36C(f)(5)’’.
17 (5) Section 166(b)(5)(A)(ii) of title 23, United
18 States Code, is amended by striking ‘‘section
19 30D(d)(1)’’ and inserting ‘‘section 36C(e)(1)’’.
20 (6) Section 1324(b)(2) of title 31, United
21 States Code, is amended by inserting ‘‘36C,’’ after
22 ‘‘36B,’’.
23 (7) The table of sections for subpart C of part
24 IV of subchapter A of chapter 1 is amended by in-
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1 serting after the item relating to section 36B the fol2
lowing new item:
‘‘Sec. 36C. New qualified plug-in electric drive motor vehicles.’’.
3 (e) EFFECTIVE DATES.—
4 (1) The amendments made by subsections (a),
5 (c), and (d) of this section shall apply to vehicles ac6
quired after December 31, 2021.
7 (2) The amendments made by subsection (b)
8 shall apply to vehicles purchased or leased after De9
cember 31, 2022.
10 SEC. 136402. CREDIT FOR PREVIOUSLY-OWNED QUALIFIED
11 PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.
12 (a) IN GENERAL.—Subpart C of part IV of sub13
chapter A of chapter 1, as amended by the preceding pro14
visions of this Act, is amended by inserting after section
15 36C the following new section:
16 ‘‘SEC. 36D. PREVIOUSLY-OWNED QUALIFIED PLUG-IN ELEC17
TRIC DRIVE MOTOR VEHICLES.
18 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of a
19 qualified buyer who during a taxable year places in service
20 a previously-owned qualified plug-in electric drive motor
21 vehicle, there shall be allowed as a credit against the tax
22 imposed by this subtitle for the taxable year an amount
23 equal to the sum of—
24 ‘‘(1) $1,250, plus
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1 ‘‘(2) in the case of a vehicle which draws pro2
pulsion energy from a battery which exceeds 4 kilo3
watt hours of capacity (determined at the time of
4 sale), the lesser of—
5 ‘‘(A) $1,250, and
6 ‘‘(B) the product of $208.50 and such ex7
cess kilowatt hours.
8 ‘‘(b) LIMITATIONS.—
9 ‘‘(1) SALE PRICE.—The credit allowed under
10 subsection (a) with respect to sale of a vehicle shall
11 not exceed 30 percent of the sale price.
12 ‘‘(2) ADJUSTED GROSS INCOME.—The amount
13 which would (but for this paragraph) be allowed as
14 a credit under subsection (a) shall be reduced (but
15 not below zero) by $200 for each $1,000 (or fraction
16 thereof) by which the taxpayer’s adjusted gross in17
come exceeds—
18 ‘‘(A) $150,000 in the case of a joint return
19 or a surviving spouse (as defined in section
20 2(a)),
21 ‘‘(B) $112,500 in the case of a head of
22 household (as defined in section 2(b)), and
23 ‘‘(C) $75,000 in the case of a taxpayer not
24 described in paragraph (1) or (2).
25 ‘‘(c) DEFINITIONS.—For purposes of this section—
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1 ‘‘(1) PREVIOUSLY-OWNED QUALIFIED PLUG-IN
2 ELECTRIC DRIVE MOTOR VEHICLE.—The term ‘pre3
viously-owned qualified plug-in electric drive motor
4 vehicle’ means, with respect to a taxpayer, a motor
5 vehicle—
6 ‘‘(A) the model year of which is at least 2
7 earlier than the calendar year in which the tax8
payer acquires such vehicle,
9 ‘‘(B) the original use of which commences
10 with a person other than the taxpayer,
11 ‘‘(C) which is acquired by the taxpayer in
12 a qualified sale,
13 ‘‘(D) registered by the taxpayer for oper14
ation in a State or possession of the United
15 States, and
16 ‘‘(E) which meets the requirements of sub17
paragraphs (C), (D), (E), (F), and (G) of sec18
tion 36C(e)(1).
19 ‘‘(2) QUALIFIED SALE.—The term ‘qualified
20 sale’ means a sale of a motor vehicle—
21 ‘‘(A) by a seller who holds such vehicle in
22 inventory (within the meaning of section 471)
23 for sale or lease,
24 ‘‘(B) for a sale price not to exceed
25 $25,000, and
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1 ‘‘(C) which is the first transfer since the
2 date of the enactment of this section to a per3
son other than the person with whom the origi4
nal use of such vehicle commenced.
5 ‘‘(3) QUALIFIED BUYER.—The term ‘qualified
6 buyer’ means, with respect to a sale of a motor vehi7
cle, a taxpayer—
8 ‘‘(A) who is an individual,
9 ‘‘(B) who purchases such vehicle for use
10 and not for resale,
11 ‘‘(C) with respect to whom no deduction is
12 allowable with respect to another taxpayer
13 under section 151,
14 ‘‘(D) who has not been allowed a credit
15 under this section for any sale during the 3-
16 year period ending on the date of the sale of
17 such vehicle, and
18 ‘‘(E) who possesses a certificate issued by
19 the seller that certifies—
20 ‘‘(i) that the vehicle is a previously21
owned qualified plug-in electric drive motor
22 vehicle,
23 ‘‘(ii) the vehicle identification number
24 of such vehicle,
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1 ‘‘(iii) the capacity of the battery at
2 time of sale, and
3 ‘‘(iv) such other information as the
4 Secretary may require.
5 ‘‘(4) MOTOR VEHICLE; CAPACITY.—The terms
6 ‘motor vehicle’ and ‘capacity’ have the meaning
7 given such terms in paragraphs (2) and (4) of sec8
tion 36C(e), respectively.
9 ‘‘(d) VIN NUMBER REQUIREMENT.—No credit shall
10 be allowed under subsection (a) with respect to any vehicle
11 unless the taxpayer includes the vehicle identification
12 number of such vehicle on the return of tax for the taxable
13 year.
14 ‘‘(e) APPLICATION OF CERTAIN RULES.—For pur15
poses of this section, rules similar to the rules of para16
graphs (1), (2), (4), (5), (6) and (7) of section 36C(f)
17 shall apply for purposes of this section.
18 ‘‘(f) CERTIFICATE SUBMISSION REQUIREMENT.—
19 The Secretary may require that the issuer of the certifi20
cate described in subsection (c)(3)(E) submit such certifi21
cate to the Secretary at the time and in the manner re22
quired by the Secretary.
23 ‘‘(g) TREATMENT OF CERTAIN POSSESSIONS.—
24 ‘‘(1) PAYMENTS TO POSSESSIONS WITH MIRROR
25 CODE TAX SYSTEMS.—The Secretary shall pay to
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1 each possession of the United States which has a
2 mirror code tax system amounts equal to the loss (if
3 any) to that possession by reason of the application
4 of the provisions of this section. Such amounts shall
5 be determined by the Secretary based on information
6 provided by the government of the respective posses7
sion.
8 ‘‘(2) PAYMENTS TO OTHER POSSESSIONS.—The
9 Secretary shall pay to each possession of the United
10 States which does not have a mirror code tax system
11 amounts estimated by the Secretary as being equal
12 to the aggregate benefits (if any) that would have
13 been provided to residents of such possession by rea14
son of the provisions of this section if a mirror code
15 tax system had been in effect in such possession.
16 The preceding sentence shall not apply unless the re17
spective possession has a plan which has been ap18
proved by the Secretary under which such possession
19 will promptly distribute such payments to its resi20
dents.
21 ‘‘(3) MIRROR CODE TAX SYSTEM; TREATMENT
22 OF PAYMENTS.—Rules similar to the rules of para23
graphs (4) and (5) of section 21(h) shall apply for
24 purposes of this section.
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1 ‘‘(h) TERMINATION.—No credit shall be allowed
2 under this section with respect to any vehicle acquired
3 after December 31, 2031.’’.
4 (b) CONFORMING AMENDMENTS.—
5 (1) Section 6211(b)(4)(A), as amended by the
6 preceding provisions of this Act, is amended by in7
serting ‘‘36D,’’ after ‘‘36C,’’.
8 (2) Section 6213(g)(2), as amended by the pre9
ceding provisions of this Act, is amended—
10 (A) in subparagraph (S), by striking
11 ‘‘and’’ at the end,
12 (B) in subparagraph (T), by striking the
13 period at the end and inserting ‘‘, and’’, and
14 (C) by adding at the end the following:
15 ‘‘(U) an omission of a correct vehicle iden16
tification number required under section
17 36D(d) (relating to credit for previously-owned
18 qualified plug-in electric drive motor vehicles) to
19 be included on a return.’’.
20 (3) Paragraph (2) of section 1324(b) of title
21 31, United States Code, as amended by the pre22
ceding provisions of this Act, is amended by insert23
ing ‘‘36D,’’ after ‘‘36C,’’.
24 (c) CLERICAL AMENDMENT.—The table of sections
25 for subpart C of part IV of subchapter A of chapter 1,
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1 as amended by the preceding provisions of this Act, is
2 amended by inserting after the item relating to section
3 36C the following new item:
‘‘Sec. 36D. Previously-owned qualified plug-in electric drive motor vehicles.’’.
4 (d) EFFECTIVE DATE.—The amendments made by
5 this section shall apply to vehicles acquired after Decem6
ber 31, 2021.
Last edited:
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I was told putting it on hold does NOT put me to back of line and my EDD was December.
Regardless I bet a ton of people will try to delay in December and push to Jan - so people who don't want to wait WILL get a December delivery as there will be a flood of people deferring delivery (all assuming this passes obviously).
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I had my order on hold for a couple weeks in August. I was shooting for a January delivery (not tax-related) and my SA called me to remove the hold because the EDD for new orders was into January. When we removed the hold, my new EDD was 11/9-29. I definitely didn't go to the end of the line.
FWIW, my current EDD is 11/20-12/18.
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t.e.s.l.a_dude
Member
Looks like some sort of the EV tax credit will pass and many people will delay. No change so far in my EDD window which is Nov 23 - Dec 21, but a friend of mine (living in the same town) who ordered one month earlier than I, got his EDD bumped up today. His original EDD was Oct 28 - Nov 28, shows now as Nov 22 - Dec 20
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t.e.s.l.a_dude
Member
I don't think it works that way. They will most likely give your car to the next customer in the queue if your delivery date is much before 1/1. You will get back into the queue, but not at the very end of the queue.
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But you can keep delaying the delivery and keep the price locked from the original order date?
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t.e.s.l.a_dude
Member
From what I read in the past is that you could do that for up to 90 days but I do not know if that is still valid right now.
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t.e.s.l.a_dude
Member
Did you already have a VIN assigned and called in for the delay? Or did you just place an order and said later that you will take delivery after Jan 2?
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Glendale MY
Member
A couple of items:
1.) I have a M3P order placed in May that was on hold until 10/1 with the promise I could hold until 1/1/22 if needed. On 10/1 the hold expired, and my account had delivery set for 10/15-10/30 - not a surprise since they want to move the more expensive Performance version. I went in and had them freeze until 1/1/22 - no problem. Going to wait to see how this tax credit plays itself out, but right now, my M3P doesn't qualify bc of the $55K sedan cap but that still could change. If it does indeed stay at $55K, i'll likely move to the dual motor and save roughly $15-20K by doing so. Sucks, but I just can't justify that kind of extra $$ .
2.) My dad also placed an order for a MY Dual Motor in May and had his delayed until 10/1. When his expired and his delivery estimated date was also 10/15-11/8. His spec currently has a May 2022 delivery estimate for orders placed today. He called and had the hold extended until 1/1/2022. So you definitely do NOT get placed at the end of the line by delaying. BC the Y is considered an SUV, his spec qualifies for the credit as proposed by the House.
1.) I have a M3P order placed in May that was on hold until 10/1 with the promise I could hold until 1/1/22 if needed. On 10/1 the hold expired, and my account had delivery set for 10/15-10/30 - not a surprise since they want to move the more expensive Performance version. I went in and had them freeze until 1/1/22 - no problem. Going to wait to see how this tax credit plays itself out, but right now, my M3P doesn't qualify bc of the $55K sedan cap but that still could change. If it does indeed stay at $55K, i'll likely move to the dual motor and save roughly $15-20K by doing so. Sucks, but I just can't justify that kind of extra $$ .
2.) My dad also placed an order for a MY Dual Motor in May and had his delayed until 10/1. When his expired and his delivery estimated date was also 10/15-11/8. His spec currently has a May 2022 delivery estimate for orders placed today. He called and had the hold extended until 1/1/2022. So you definitely do NOT get placed at the end of the line by delaying. BC the Y is considered an SUV, his spec qualifies for the credit as proposed by the House.
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This is an interesting situation (M3P credit). It may end up that you can get a MYP for significantly less than a M3P.
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I see folks on the forum stating they did hold, was that in person or over the phone with their sales rep?
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What is Tesla going to do to prevent the December delivery folks from requesting to delay till after the New Year, assuming the new credit gets passed?
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