SECTION 5. CRITICAL — Internal Revenue Bulletin 2024-27

AND BATTERY COMPONENTS REQUIREMENTS FOR PURPOSES OF § 30D

.01 Introduction. (1) Section 30D(e)(1)(A) provides that with respect to a vehicle, the Critical Minerals Requirement with respect to the battery from which the electric motor of such vehicle draws electricity is satisfied if the percentage of the value of the applicable critical minerals (as defined in § 45X(c) (6)) contained in such battery that were (i) extracted or processed in the United States, or in any country with which the United States has a free trade agreement (FTA) in effect, or (ii) recycled in North America, is equal to or greater than the applicable percentage (as certified by the qualified manufacturer, in such form or manner as prescribed by the Secretary). The applicable percentage for the Critical Minerals Requirement is set forth in § 30D(e)(1)(B)(i) through (v) and varies based on when the vehicle is placed in service. Treasury regulations further provide that the Critical Minerals Requirement is met if the qualifying critical mineral content of the clean vehicle battery is equal to or greater than the applicable critical minerals percentage (as defined in § 30D(e)(1) (B) and § 1.30D-3(a)(2)), as certified by the qualified manufacturer, in such form or manner as prescribed by the Secretary. See § 1.30D-3(a)(1). If the Critical Minerals 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)(2).

(2) Section 30D(e)(2)(A) provides that with respect to a vehicle, the Battery Components Requirement with respect to the battery from which the electric motor of such vehicle draws electricity is satisfied if the percentage of the value of the components contained in such battery that were manufactured or assembled in North America is equal to or greater than the applicable percentage (as certified by the qualified manufacturer, in such form or manner as prescribed by the Secretary). The applicable percentage for the Battery Components Requirement is set forth in § 30D(e)(2)(B)(i) through (vi) and varies based on when the vehicle is placed in service. Treasury regulations further provide

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in § 1.30D-6(e) and section 5.06 of Rev. Proc. 2023-38.

(3) To comply with the Critical Minerals Requirement for a calendar year, the qualified manufacturer must do the following: (i) determine the qualifying mineral content with respect to a clean vehicle battery in accordance with section 5.03(1) of this revenue procedure; (ii) certify that the qualifying critical mineral content of a clean vehicle battery is equal to or greater than the applicable critical minerals percentage for such year; and (iii) submit a compliance report in accordance with section 5.04 of this revenue procedure. To comply with the Battery Components Requirement for a calendar year, the qualified manufacturer must (i) determine the qualifying battery component content with respect to a clean vehicle battery in accordance with section 5.03(2) of this revenue procedure; (ii) certify that the qualifying battery component content of a clean vehicle battery is equal to or greater than the applicable battery component percentage for such year; and (iii) submit a compliance report in accordance with section 5.04 of this revenue procedure.

(4) The requirements of this section 5.02 of this revenue procedure are in addition to the submissions required to establish the compliant-battery ledger of FEOC-compliant batteries (as defined in § 1.30D-2(b)(11)), as provided for in § 1.30D-6(d), section 5 of Rev. Proc. 2023-38, and section 4 of this revenue procedure. The attestations, certifications, and documentation described in section 5.04 of this revenue procedure showing compliance with the Critical Minerals Requirement or the Battery Components Requirement should be submitted with the submissions required to establish the compliant-battery ledger of FEOC-compliant batteries. Any information submitted regarding FEOC compliance may also be used by the DOE and the IRS to evaluate a qualified manufacturer’s compliance with the Critical Minerals Requirement and the Battery Components Requirement as detailed in this revenue procedure.

.03 Determination of Qualifying Criti- cal Mineral Content and Qualifying Bat- tery Component Content .

(1) For any vehicle for which the qualified manufacturer intends to make the certification described in section 5.02(1),

the qualified manufacturer must determine the qualifying critical mineral content with respect to a clean vehicle battery, as described in § 1.30D-3(a)(3)). For new clean vehicles for which the qualified manufacturer submitted a periodic written report on or after May 6, 2024, and before January 1, 2027, qualifying critical mineral content with respect to a clean vehicle battery may be calculated in accordance with the temporary safe harbor described in § 1.30D-3(a)(4).

(2) For any vehicle for which the qualified manufacturer intends to make the certification described in section 5.02(2), the qualified manufacturer must determine the qualifying battery component content with respect to a clean vehicle battery, as described in § 1.30D-3(b)(3).

.04 Documentation and attestations to be provided to the DOE.

(1) The qualified manufacturer must submit to the DOE a compliance report, including supporting documentation in relation to applicable critical minerals and battery components, as described in section 5.04(2) of this revenue procedure, and make attestations, under penalty of perjury, as described in section 5.04(3) of this revenue procedure. For any vehicle for which the qualified manufacturer intends to make the certification described section 5.02(1) of this revenue procedure, the compliance report must contain the information described in section 5.04(2)(a)-(c). For any vehicle for which the qualified manufacturer intends to make the certification described section 5.02(2) of this revenue procedure, the compliance report must contain the information described in section 5.04(2)(a), (b) and (d). The qualified manufacturer may make separate submissions for each group of vehicles over which the manufacturer averages the qualifying critical mineral content calculation as described in § 1.30D-3(a)(3)(iv) or the qualifying battery component content calculation described in § 1.30D-3(b)(3) (iv), provided the qualified manufacturer specifies in its submission the group of such vehicles to which such submissions relates.

(2) Compliance report . The compliance report must contain the following information:

(a) A description of measures taken to exercise due diligence and the approach

taken to determine compliance with the requirements of § 30D(e).

(b) If available, independent analysis or audit of compliance factors prior to the submission of information showing compliance with the Critical Minerals Requirement or the Battery Components Requirement, as applicable, to the DOE, including identification of the auditor or analyst and the auditor or analyst’s expertise for performing such analysis.

(i) The location for extraction, processing, and recycling of each procurement chain of each applicable critical mineral and constituent material contained in the clean vehicle battery.

(ii) The value added by extraction, processing, or recycling, including:

(I) The share of total value added by extraction activities that occurred in the United States or a country with which the United States has a free trade agreement (FTA location).

(II) The share of total value added by processing activities that occurred in the United States or FTA location.

(III) The share of total value added by recycling activities in North America.

(iii) The value of each applicable critical mineral contained in the clean vehicle battery.

(iv) A calculation of the qualifying critical mineral content.

(d) For purposes of the Battery Components Requirement:

(i) The incremental value of each North American battery component as defined in § 1.30D-3(c)(2)(ii).

(ii) The incremental value of each battery component contained in a clean vehicle battery.

(iii) The location of manufacturing and assembly of each battery component.

(iv) A calculation of the qualifying battery component content.

(3) Attestations . The qualified manufacturer must make the following attestations under penalty of perjury:

(a) An attestation that the qualified manufacturer has exercised due diligence to determine that the applicable critical minerals or battery components, as applicable, as relating to new clean vehicles that the qualified manufacturer intends to certify to the IRS, are compliant with the

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Critical Minerals Requirement or the Battery Components Requirement.

(b) An attestation that if any material changes occur with respect to any information provided in section 5.04(2) of this revenue procedure, the qualified manufacturer will report this information to the DOE as provided in section 5.05 of this revenue procedure.

(4) An attestation that the information submitted is true and correct to the best of the knowledge of the qualified manufacturer’s representative, who is currently authorized to bind the qualified manufacturer in these matters.

.05 Upfront Review of Compliance with the Critical Minerals Requirement and the Battery Components Requirement .

(1) For new clean vehicles expected to be placed in service after December 31, 2024, to establish compliance with the Critical Minerals Requirement or the Battery Components Requirement, the qualified manufacturer must submit the documentation and attestations described in section 5.04 of this revenue procedure for upfront review to the DOE through a method provided by the DOE. See § 1.30D-3(d). A template report and workbook will be made available by the IRS or DOE prior to July 1 of the year prior to the calendar year for which compliance is being established; the template report and workbook are the same templates referenced in section 4.02 of this revenue procedure. 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) As part of the IRS determination process, DOE will review submissions by the manufacturer; conduct analysis based on such submissions, its own expertise, and independent research; and provide that analysis to the IRS. 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

regarding compliance with the Critical Minerals Requirement or the Battery Components Requirement for purposes of the qualified manufacturer’s certifications to the IRS.

(3) If a qualified manufacturer submits the information to the DOE by July 1 of the year prior to the calendar year for which compliance is being established, 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.

(a) The DOE may request additional information from the qualified manufacturer. 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.

(b) The DOE will notify the IRS of its analysis no later than October 1 of the calendar year prior to the calendar year for which the qualified manufacturer is seeking to make certifications regarding compliance with the Critical Minerals Requirement and the Battery Components Requirement. The IRS will then make a determination concerning compliance and share its determination with the qualified manufacturer no later than October 31.

(4) If a qualified manufacturer makes its submission regarding compliance with the Critical Minerals Requirement and the Battery Components Requirement after July 1 of the year prior to the calendar year for which compliance is being established, the DOE will review and provide its analysis, and the IRS, in consultation with the DOE, will make determinations on a rolling basis.

.06 Right to Administrative Review. If, on the basis of the DOE’s analysis or otherwise, the IRS determines that a qualified manufacturer failed to meet the Critical Minerals Requirement or the Battery Components Requirement, the qualified manufacturer will have 21 days from the date of the IRS’s electronic notification of its determination to request administrative review of the DOE’s analysis and IRS’s determination. If the qualified manufacturer requests administrative review,

it may submit additional information to the DOE regarding compliance with the relevant requirements. Once the DOE determines such additional information is complete, the DOE will provide the IRS with an updated analysis within 21 days. The IRS will make a final determination concerning compliance within 21 days of receipt of the DOE’s analysis of the qualified manufacturer’s request for administrative review and any additional information submitted during the administrative review.

.07 Failure to establish compliance. If, after the administrative review described in section 5.06 of this revenue procedure if applicable, the IRS determines that the documentation or attestations for a new clean vehicle or group of vehicles contain inaccurate or insufficient information or information that does not support compliance with the Critical Minerals Requirement or the Battery Components Requirement, the IRS will notify the qualified manufacturer electronically in writing, and:

(1) In the case of a new clean vehicle that has not been placed in service for which the qualified manufacturer has submitted a periodic written report certifying compliance with the requirements of § 30D(e):

(i) In the case of a vehicle for which documentation and information does not support compliance with the Critical Minerals Requirement, such vehicle will not be eligible for the $3,750 credit amount described in § 30D(b)(2);

(ii) In the case of a vehicle for which documentation and information does not support compliance with the Battery Components Requirement, such vehicle will not be eligible for the $3,750 credit amount described in § 30D(b)(3);

(2) In the case of a new clean vehicle that has not been placed in service for which the qualified manufacturer has not submitted a periodic written report certifying compliance with the requirement of § 30D(e):

(i) In the case of a vehicle for which documentation and information does not support compliance with the Critical Minerals Requirement, the qualified manufacturer may not certify that such vehicle is eligible for the $3,750 credit amount described in § 30D(b)(2);

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(ii) In the case of a vehicle for which documentation and information does not support compliance with the Battery Components Requirement, the qualified manufacturer may not certify that such vehicle is eligible for $3,750 credit amount described in § 30D(b)(3).