SECTION 7. MANUFACTURER’S

CERTIFICATION

.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 vehicle of a particular make, model, and year meets all requirements (other than those listed in section 7.02 of this notice) that must be satisfied to claim the new QAFMV credit, and the amount of the credit allowable under § 30B(a)(4) and (e) with respect to that 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 8 of this notice, a certification with respect to the vehicle and the certification satisfies the requirements of section 7.03 of this notice; and

(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 7.05 of this notice, a purchaser of a motor vehicle 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 amount of the credit allowable with respect to the vehicle (including in 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; and

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

.03 Content of Certification . The certification must contain the information re

quired in section 7.03(1) of this notice and any applicable additional information required in section 7.03(2), section 7.03(3), or section 7.03(4) of this notice.

(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, year, and any other appropriate identifiers of the motor vehicle;

(c) A statement that the vehicle, as configured to operate only on an alternative fuel or a mixed fuel, is made by a manufacturer;

(d) The type of credit for which the vehicle qualifies ( i.e., either the credit for alternative fuel motor vehicles or the reduced credit for mixed-fuel vehicles);

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

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

(g) The manufacturer’s suggested retail price for the vehicle;

(h) The manufacturer’s suggested retail price for a gasoline or diesel fuel motor vehicle of the same model;

(i) The alternative fuel used by the vehicle;

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

(k) A statement that the vehicle complies with the applicable air quality provisions of state law of each state that has adopted such provisions under a waiver under § 209(b) of the Clean Air Act or a list identifying each such 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; and (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 manufacturer, its domestic distributor) in such 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

2006–26 I.R.B. 1182 June 26, 2006

fuel contains at least 90 percent alternative fuel and not more than 10 percent petroleum-based fuel; or

(ii) that the vehicle is not able to perform efficiently in normal operation unless its fuel contains at least 75 percent alternative fuel and not more than 25 percent petroleum-based fuel; and

(d) one of the following: (i) a copy of the certificate of conformity under the Clean Air Act; or

(ii) a copy of an order certifying that the vehicle meets the same requirements as vehicles that may be sold or leased in California, and evidence that the vehicle meets or exceeds the applicable low emission vehicle standard under 40 C.F.R § 88.105–94, for that make and model year.

.04 Acknowledgment . The Service will review the original signed certification and issue an acknowledgment letter to the vehicle manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) within 30 days of receipt of the request for certification. This acknowledgment letter will state whether purchasers may rely on the certification.

.05 Effect of Erroneous Certification . The acknowledgment that the Service provides for a certification is not a determination that a vehicle qualifies for the credit, or that the amount of the credit is correct. The Service may, upon examination (and after any appropriate consultation with Department of Transportation or the Environmental Protection Agency), determine that the vehicle is not a new QAFMV or a mixed-fuel vehicle or that the amount of the credit determined by the manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) to be allowable with respect to the vehicle is incorrect. In either event, the manufacturer’s (or, in the case of a foreign vehicle manufacturer, its domestic distributor’s) right to provide a certification to future purchasers will be withdrawn, and purchasers who acquire vehicles after the date on which the Service publishes an announcement of the withdrawal may not rely on the certifica

tion. Purchasers may continue to rely on the certification for vehicles they acquired 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 manufacturers, their domestic distributors) are reminded that an erroneous certification 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.