SECTION 5. MANUFACTURER’S

CERTIFICATION AND QUARTERLY REPORTS

.01 When Certification Permitted . A vehicle manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) may certify to purchasers that a passenger automobile or light truck of a particular make, model, and model year meets all requirements (other than those listed in section 5.02 of this notice) that must be satisfied to claim the new advanced lean burn technology motor vehicle credit or the new qualified hybrid motor vehicle credit, and the amount of the credit allowable under § 30B(a)(2) and (c) or § 30B(a)(3) and (d) with respect to the vehicle, if the following requirements are met:

(1) The manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) has submitted to the Service, in accordance with section 6 of this notice, a certification with respect to the vehicle and the certification satisfies the requirements of section 5.03 of this notice;

(2) The manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) has received an acknowledgment of the certification from the Service.

.02 Purchaser’s Reliance . Except as provided in section 5.07 of this notice, a purchaser of a passenger automobile or light truck may rely on the manufacturer’s (or, in the case of a foreign vehicle manufacturer, its domestic distributor’s) certification concerning the vehicle and the

Courier Address USEPA Headquarters Ariel Rios Building 1200 Pennsylvania Avenue, N.W. Room 6502A Washington, DC 20004

amount of the credit allowable with respect to the vehicle (including cases in which the certification is received after the purchase of the vehicle). The purchaser may claim a credit in the certified amount with respect to the vehicle if the following requirements are satisfied:

(1) The vehicle is placed in service by the taxpayer after December 31, 2005, and is purchased on or before December 31, 2010. (2) The original use of the vehicle commences with the taxpayer.

(3) The vehicle is acquired for use or lease by the taxpayer, and not for resale.

(4) The vehicle is used predominantly in the United States.

.03 Content of Certification . The certification must contain the information required in section 5.03(1) of this notice and the additional information required in section 5.03(2) or section 5.03(3), whichever applies.

(1) All Vehicles . For all vehicles, the certification must contain—

(a) The name, address, and taxpayer identification number of the certifying entity;

(b) The make, model, model year, and any other appropriate identifiers of the motor vehicle;

(c) A statement that the vehicle is made by a manufacturer;

(d) The type of credit for which the vehicle qualifies (that is, either the new advanced lean burn technology motor vehicle credit, or the new qualified hybrid motor vehicle credit for passenger automobiles and light trucks);

(e) The amount of the credit for the vehicle (showing computations);

(f) The gross vehicle weight rating of the vehicle;

(g) The vehicle inertia weight class of the vehicle;

(h) The city fuel economy of the vehicle;

(i) A statement that the vehicle complies with the applicable provisions of the Clean Air Act;

(j) A copy of the certificate that the vehicle meets or exceeds the applicable Bin 5 Tier II emission standard (if the vehicle has a gross vehicle weight rating of 6,000 pounds or less), or the applicable Bin 8 Tier II emission standard (if the vehicle has a gross vehicle weight rating of more than 6,000 pounds, but not more than 8,500 pounds) established in regulations prescribed by the Administrator of the Environmental Protection Agency under § 202(i) of the Clean Air Act for that make and model year vehicle;

(k) A statement that the vehicle complies with the applicable air quality provisions of state law of each state that has adopted the provisions under a waiver under § 209(b) of the Clean Air Act or a list identifying each state that has adopted applicable air quality provisions with which the vehicle does not comply;

(l) A statement that the vehicle complies with the motor vehicle safety provisions of 49 U.S.C. §§ 30101 through 30169; (m) A declaration, applicable to the certification and any accompanying documents, signed by a person currently authorized to bind the manufacturer (or, in the case of a foreign vehicle manufacturer, it domestic distributor) in these matters, in the following form:

“Under penalties of perjury, I declare that I have examined this certification, including accompanying documents, and to the best of my knowledge and belief, the facts presented in support of this certification are true, correct, and complete.”

(2) New Advanced Lean Burn Technol- ogy Motor Vehicles . A certification relating to a new advanced lean burn technology motor vehicle must also contain a statement that the vehicle has an internal combustion engine that—

(a) Is designed to operate primarily using more air than is necessary for complete combustion of the fuel;

(b) Incorporates direct injection; and (c) Achieves at least 125 percent of the 2002 model year city fuel economy.

2006–6 I.R.B. 414 February 6, 2006

certification. Purchasers may continue to rely on the certification for vehicles they acquired on or before the date on which the announcement of the withdrawal is published (including in cases in which the vehicle is not placed in service and the credit is not claimed until after that date), and the Service will not attempt to collect any understatement of tax liability attributable to such reliance. Manufacturers (or, in the case of foreign vehicle manufacturers, their domestic distributors) are reminded that an erroneous certification or an erroneous quarterly report may result in the imposition of penalties:

(a) under § 7206 for fraud and making false statements; and

(b) under § 6701 for aiding and abetting an understatement of tax liability in the amount of $1,000 ($10,000 in the case of understatements by corporations) per return on which a credit is claimed in reliance on the certification).

(2) Failure to Make Timely Quarterly Report . If a manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) fails to make a quarterly report in accordance with section 5.05 of this notice and at the time specified in section 6.02 of this notice, the acknowledgment letter issued under section 5.04 of this notice may be withdrawn, and purchasers will not be entitled to rely on the related certification for quarters beginning after the date on which the Service publishes an announcement of the withdrawal (generally, quarters beginning after the due date of the report). If the quarterly report is filed subsequently, the Service may reissue the acknowledgment letter and retract the withdrawal announcement.