The commercial clean vehicle credit for cars bought and put into operation during the tax year was announced today by the Treasury Department and Internal Revenue Service in Notice 2023-9PDF.
The guideline advises taxpayers that the incremental cost for all street vehicles in the calendar year 2023 has been examined by the Internal Revenue Service and the Department of the Treasury. The estimate reveals that in the year 2023, the incremental cost for all street cars with a gross vehicle weight rating of less than 14,000 pounds will be higher than $7,500 (except from tiny car PHEVs).
For street cars that are put into service in the calendar year 2023 and have a gross vehicle weight rating of less than 14,000 pounds, the extra cost will not reduce the amount of credit that is available.
The Treasury Department and the IRS will accept for vehicles placed in service during the calendar year 2023 a taxpayer’s use, in calculating the credit amount, of the incremental cost published by the Department of Energy for compact car plug-in electric hybrids for which the incremental cost was calculated to be less than $7,500.