SECTION 4. COMPLIANT- — Internal Revenue Bulletin 2024-27

BATTERY LEDGER FOR PURPOSES OF § 30D

.01 Introduction. For calendar years beginning January 1, 2025, for new clean vehicles to qualify for the § 30D credit, the qualified manufacturer must provide information to the IRS and the DOE to establish a compliant-battery ledger for each calendar year. The compliant-battery ledger for a qualified manufacturer for a calendar year is a ledger established under the rules of § 1.30D-6(d) that tracks the number of FEOC-compliant batteries for such calendar year. The procedure for qualified manufacturers to establish a compliant-battery ledger, as well as the procedure to increase or reduce the battery-compliant ledger, is provided in section 5 of Rev. Proc. 2023-38. See § 1.30D6(b) for rules related to the due diligence the qualified manufacturer must conduct with respect to all battery components and applicable critical minerals (and associated constituent materials) that are relevant to determining whether such components or minerals are FEOC-compliant.

.02 Upfront Review of Projected Num- ber of FEOC-Compliant Batteries.

(1) In general. To establish a compliant-battery ledger, the qualified manufacturer must submit the attestation of the projected number of FEOC-compliant batteries and other information described § 1.30D-6(d) and section 5.03 of Rev. Proc. 2023-38 (collectively, the submission) for upfront review to the DOE

through a method provided by the DOE. The IRS will make a determination with respect to the submission, with analytical assistance from the DOE, and notify the qualified manufacturer of its determination. As part of the IRS determination process, DOE will review the submission by the manufacturer; conduct analysis based on such submission, its own expertise, and independent research; and provide that analysis to the IRS.

A template report and workbook will be made available by the IRS or the DOE prior to July 1 of the year prior to the calendar year for which the compliant-battery ledger is being established. Qualified manufacturers are encouraged to submit the requisite information using the template report and template workbook to ensure a more streamlined review process. While qualified manufacturers are not required to use the template workbook, they must submit a workbook spreadsheet. The formulas in the workbook spreadsheet submitted by the qualified manufacturer must be visible and not converted into calculated values.

(2) Report for transition rule for impracticable-to-trace battery materials.

(a) Section 1.30D-6(b)(2) provides that for any new clean vehicle for which the qualified manufacturer provides a periodic written report before January 1, 2027, the due diligence requirement of § 1.30D-6(b) (1) may be satisfied by excluding impracticable-to-trace battery materials, as defined in § 1.30D-2(b)(25). To use this transition rule, a qualified manufacturer must submit a report during the upfront review process described in § 1.30D-6(d)(2)(ii) for each year it seeks to use the transition rule.

(b) The report must demonstrate how the qualified manufacturer will comply with the FEOC restriction of § 30D(d) (7) and § 1.30D-6 for vehicles placed in service after December 31, 2026, at the latest, including information about efforts made to date to secure a FEOC-compliant supply of these battery materials once the transition rule is no longer in effect. The qualified manufacturer must submit the report described in this section 4.02 of this revenue procedure for upfront review to the DOE through a method provided by the DOE.

(i) For any applicable critical mineral on the list of impracticable-to-trace battery materials for which the qualified manufacturer intends to rely on the transition rule, an explanation of how the qualified manufacturer anticipates complying with the FEOC restrictions and conducting due diligence with respect to that material by the end of the transition rule period.

(ii) Within this explanation, a list of current suppliers for from which the qualified manufacturer purchases impracticable-to-trace battery materials, and the expected total quantity of impracticable-to-trace battery materials that will be used in vehicles for which the qualified manufacturer anticipates providing a periodic written report in the upcoming calendar year. With respect to future suppliers:

(aa) If available, the names of suppliers of impracticable-to-trace battery materials with which the qualified manufacturer has signed an offtake agreement, and the quantity of supply under that agreement. Indicate whether these agreements would or would not satisfy expected demand for 30D-eligible vehicles beginning in 2027. (bb) The names of suppliers of impracticable-to-trace battery materials with which the qualified manufacturer has not yet signed offtake agreements but have entered into formal discussions for supply, and the year that supply would be provided. Provide the status of each such agreement, including material qualification, joint development agreements (if any), legal review, and financial review.

(cc) Documentation that demonstrates meaningful efforts and progress to secure a FEOC-compliant supply of impracticable-to-trace battery materials for use in the qualified manufacturer’s vehicles after the transition period, such as memoranda of understanding, letters of commitment, joint press releases, qualification processes, and/or offtake agreements. Letters of intent will not be considered to demonstrate meaningful progress.

(dd) An explanation of how these suppliers will increase the qualified manufacturer’s ability to conduct due diligence as to this applicable critical mineral.

(ee) If available, a list of entities that extract, process, or recycle impractica

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that the Battery Components Requirement is met if the qualifying battery component content of the clean vehicle battery is equal to or greater than the applicable battery components percentage (as defined in § 1.30D-3(b)(2)), as certified by the qualified manufacturer, in such form or manner as prescribed by the Secretary. See § 1.30D-3(b)(1). If the Battery Components Requirement is met with respect to a new clean vehicle, such vehicle is eligible for a $3,750 credit amount, as provided in § 30D(b)(3).

.02 Reporting requirements. (1) For new clean vehicles anticipated to be placed in service after December 31, 2024, the qualified manufacturer must provide information to the DOE to establish that the Critical Minerals Requirement has been met for each calendar year in order for the qualified manufacturer to certify such vehicles as eligible for the $3,750 credit amount described in § 30D(b)(2). This information and supporting documentation (as described in § 1.30D-3(d)) for a calendar year must support a qualified manufacturer’s qualifying critical mineral content of a clean vehicle battery (as defined in § 1.30D-3(c)(1)(iii)) for such calendar year. For vehicles placed in service in calendar year 2024, the qualified manufacturer is not required to provide information to comply with the Critical Minerals Requirement.

(2) For new clean vehicles anticipated to be placed in service after December 31, 2024, the qualified manufacturer must provide information to the DOE to establish that the Battery Components Requirement has been met for each calendar year in order for the qualified manufacturer to certify such vehicles for the $3,750 credit amount described in § 30D(b)(3). This information and supporting documentation (as described in § 1.30D-3(d)) for a calendar year must support a qualified manufacturer’s qualifying battery component content of a clean vehicle battery (as defined in § 1.30D-3(c)(2)(iii)) for such calendar year. For vehicles placed in service in calendar year 2024, the qualified manufacturer is not required to provide information to comply with the Battery Components Requirement, but the qualified manufacturer must submit information to the DOE regarding FEOC-compliance of battery components as provided

ble-to-trace battery materials upstream of the suppliers with which the qualified manufacturer has an offtake agreement or formal discussions.

(ff) If available, a description of the due diligence practices of the suppliers with which the qualified manufacturer has an offtake agreement or formal discussions.

(iii) If the supply of battery materials in signed offtake agreements and agreements under discussion is insufficient to support the anticipated number of vehicles for which the qualified manufacturer anticipates providing a periodic written report beginning in 2027, an explanation of how the qualified manufacturer plans to address that.

(d) The DOE will review the information submitted by the qualified manufacturer and make any requests for additional information from the qualified manufacturer within 45 days of the submission, unless a longer period is agreed to by the qualified manufacturer and the DOE. The qualified manufacturer must respond to the request for additional information within 21 days of receipt of such request unless a longer period is agreed to by the qualified manufacturer and the DOE. The DOE will notify the IRS of its analysis within 90 days of the qualified manufacturer’s submission, and whether the information submitted in the report is sufficient. The IRS will then make a determination within 30 days and notify the qualified manufacturer whether it satisfied the report requirement.

.03 Modification of section 5.06 of Rev. Proc. 2023-38. Section 5.06 of Rev. Proc. 2023-38 is modified to read as follows:

.06 Submission of 2024 informa- tion. The qualified manufacturer must submit the information and attestations described in sections 5.03(1) and 5.03(3) through 5.03(5) of Revenue Procedure 2023-38 with respect to vehicles that have been placed in service or are expected to be placed in service during calendar year 2024, by September 1, 2024. However, the submission of the information related to vehicles that have been or are expected to be placed in service in calendar year 2024 is not required to include information related to applicable critical minerals and associated constituent materials.