IRS guidance on commercial clean vehicle credits

The IRS recently issued Notice 2023-16 that modifies the definitions of certain vehicle classifications for the new, previously owned and qualified commercial clean vehicle credits.

Today’s guidance modifies Notice 2023-01 by changing the vehicle classification standard by which vans, sport utility vehicles, pickup trucks, and other vehicles are defined. In addition, Fact Sheet 2023-4 updates the 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.

As always, visit the Intuit® Tax Pro Center IRS News page for continuous updates.