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Introduction

SECTION 4. MEANING OF TERMS

Internal Revenue Bulletin 2006-26 · 2026-10-03 edition · updated 2026-10-04 · United States

The following definitions apply for purposes of this notice:

.01 In General . Terms used in this notice, but not specifically defined in this section, have the same meaning as when used in § 30B.

.02 Incremental Cost . The incremental cost of a new QAFMV or a mixed-fuel vehicle is equal to the amount of the excess of the manufacturer’s suggested retail price for the vehicle over the manufacturer’s suggested retail price for a gasoline

or diesel fuel motor vehicle of the same model.

.03 Manufacturer’s Suggested Retail Price . If the manufacturer of a QAFMV or a mixed-fuel vehicle is required under 15 U.S.C. § 1232 to provide a manufacturer’s suggested retail price for the vehicle, then the manufacturer’s suggested retail price for the vehicle is the price provided in accordance with 15 U.S.C. § 1232 for that vehicle. Similarly, if the manufacturer of a QAFMV or a mixed-fuel vehicle is required under 15 U.S.C. § 1232 to provide a manufacturer’s suggested retail price for a gasoline or diesel fuel vehicle of the same model, then the manufacturer’s suggested retail price for the gasoline or diesel fuel vehicle is the price provided in accordance with 15 U.S.C. § 1232 for that vehicle. In all other cases, the manufacturer’s suggested retail price is the amount the manufacturer (or in the case of a foreign vehicle manufacturer, its domestic distributor) specifies as the manufacturer’s suggested retail price under section 7.03(1)(g) and (h) of this notice.

.04 Mixed Fuel . A mixed fuel is a combination of an alternative fuel and a petroleum-based fuel.

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▸Contents — Internal Revenue Bulletin 2006-26

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