SECTION 2. BACKGROUND

.01 Overview. This section provides an overview of this revenue procedure and relevant background. Section 3 of this revenue procedure provides definitions applicable to this revenue procedure. Section 4 of this revenue procedure provides updated procedures with respect to the compliant-battery ledger for purposes of § 30D, provides a new procedure for the submission of the report for the transition rule for impracticable-to-trace battery materials, and modifies section 5.06 of Rev. Proc. 2023-38. Section 5 of this revenue procedure provides procedures relevant to the critical minerals and battery components requirements of § 30D(e) and the upfront review of such requirements. Section 6 of this revenue procedure provides updated procedures on updating and rescinding seller reports under § 30D(d) (1)(H).

.02 Section 30D Clean Vehicle Credit. (1) Section 30D was enacted by § 205(a) of the Energy Improvement

and Extension Act of 2008, Division B of Public Law 110-343, 122 Stat. 3765, 3835 (October 3, 2008), to provide a credit for purchasing and placing in service new qualified plug-in electric drive motor vehicles. Section 30D has been amended several times since its enactment, most recently by § 13401 of Public Law 117-169, 136 Stat. 1818 (August 16, 2022), commonly known as the Inflation Reduction Act of 2022 (IRA). In general, the amendments made by § 13401 of the IRA to § 30D apply to vehicles placed in service after December 31, 2022, except as provided in § 13401(k)(2) through (5) of the IRA.

(2) Section 30D(a) allows a credit for the taxable year with respect to each new clean vehicle placed in service by a taxpayer during the taxable year. Section 30D(b) provides a maximum credit of $7,500 per vehicle, consisting of $3,750 if certain critical minerals requirements are met and $3,750 if certain battery components requirements are met. These requirements are described in § 30D(e)(1) and (2), respectively.

(3) Section 13401(k)(3) of the IRA provides that the critical minerals requirement described in § 30D(e)(1) (Critical Minerals Requirement) and the battery components requirement described in § 30D(e)(2) (Battery Components Requirement) apply to vehicles placed in service after the date on which proposed guidance with respect to the Critical Minerals and the Battery Components Requirements is issued by the Secretary of the Treasury or her delegate (Secretary). On April 17, 2023, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) issued a Notice of Proposed Rulemaking in the Federal Register (88 F.R. 23370), which constitutes that proposed guidance. Thus, the Critical Minerals and Battery Components Requirements apply to vehicles placed in service on or after April 18, 2023.

.03 IRS Final Regulations. On May 6, 2024, the Treasury Department and the IRS published TD 9995 in the Federal Register (89 FR 37706) (final regulations). The final regulations provide guidance

1 Unless otherwise specified, all “Section” or “§” references are to sections of the Code or the Income Tax Regulations (26 CFR Part 1).

Bulletin No. 2024–27 7 July 1, 2024