Notice

.05 SPECIAL RULES FOR VOLUME
CAP ALLOCATIONS RECEIVED BY
THE POSSESSIONS
In recognition of the disparate local
governmental organizational structures
and disparate availability of employment
data for the Possessions of the United
States, the Possessions may allocate locally, reallocate locally, or use directly
their respective State allocations of volume cap for Recovery Zone Bonds in any
reasonable manner as they may determine
in good faith in their discretion.
SECTION 7. EFFECTIVE DATE OF
VOLUME CAP ALLOCATIONS
The allocations of national volume cap
for Recovery Zone Bonds in Section 6 of
this notice are effective for bonds issued on
or after February 17, 2009.
SECTION 8. DRAFTING
INFORMATION
The principal authors of this notice are
Zoran Stojanovic and Timothy L. Jones
of the Office of Associate Chief Counsel
(Financial Institutions and Products). For
further information regarding this notice,
contact Mr. Stojanovic or Mr. Jones at
(202) 622–3980 (not a toll-free call).

Qualified Plug-in Electric
Vehicle Credit
Notice 2009–54
Section 1. PURPOSE
This notice sets forth interim guidance,
pending the issuance of regulations, relating to the new qualified plug-in electric
drive motor vehicle credit under § 30D of
the Internal Revenue Code. Specifically,
this notice provides procedures for a vehicle manufacturer (or, in the case of a
foreign vehicle manufacturer, its domestic
distributor) to certify to the Internal Revenue Service (“Service”) both:
(1) That a motor vehicle of a particular make, model, and model year meets
certain requirements that must be satisfied
to claim the new qualified plug-in electric
drive motor vehicle credit under § 30D;
and

June 29, 2009

(2) The amount of the credit allowable
with respect to that motor vehicle.
This notice also provides guidance to
taxpayers who purchase motor vehicles regarding the conditions under which they
may rely on the vehicle manufacturer’s (or,
in the case of a foreign vehicle manufacturer, its domestic distributor’s) certification in determining whether a credit is allowable with respect to the vehicle and the
amount of the credit. The Service and the
Treasury Department expect that the regulations will incorporate the rules set forth
in this notice.
Section 30D originally was enacted in
the Energy Improvement and Extension
Act of 2008, Pub. L. 110–343, 122 Stat.
3765. The American Recovery and Reinvestment Act of 2009, Pub. L. 111–5, 123
Stat. 115, amended § 30D in certain respects, and those amendments are effective
for vehicles acquired after December 31,
2009. The Service and Treasury Department will issue subsequent guidance relating to those amendments. All references to
§ 30D in this notice are to the provision as
in effect before its amendment.
Section 2. BACKGROUND
Section 30D provides for a credit for
certain new qualified plug-in electric drive
motor vehicles. The credit is equal to the
sum of: (1) $2,500, plus (2) $417 for each
kilowatt hour of traction battery capacity
in excess of 4 kilowatt hours. Section
30D(b)(1) limits the amount of the credit
allowed for a vehicle to amounts ranging
from $7,500 to $15,000, depending on the
gross vehicle weight rating of the vehicle.
The new qualified plug-in electric drive
motor vehicle credit phases out over the
period beginning with the second calendar
quarter after the calendar quarter in which
at least 250,000 qualifying vehicles have
been sold for use in the United States (determined on a cumulative basis for sales
after December 31, 2008) (phase-out period”). Qualifying vehicles purchased in
the first two calendar quarters of the phaseout period are eligible for 50 percent of
the credit. Qualifying vehicles purchased
in the third and fourth calendar quarters of
the phase-out period are eligible for 25 percent of the credit. Vehicles purchased after
the last day of the fourth calendar quarter
of the phase-out period are not eligible for
a credit. If a vehicle qualifies for a credit

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under both § 30B and § 30D, the amount
of the credit allowed under § 30B is the
amount of the otherwise allowable credit
under that section reduced (but not below
zero) by the amount of the credit allowed
under § 30D. In addition, if a vehicle qualifies for a credit under § 30D, no credit is
allowed for that vehicle under § 30.
Section 3. SCOPE OF NOTICE
The new qualified plug-in electric drive
motor vehicle credit applies to plug-in
electric drive motor vehicles, including
low speed vehicles as defined in section
4(6) of this notice, that—
(1) Are placed in service by the taxpayer in a taxable year beginning after December 31, 2008;
(2) Are acquired by the taxpayer on or
before December 31, 2009; and
(3) Otherwise meet the requirements of
§ 30D.
Section 4. MEANING OF TERMS
The following definitions apply for purposes of this notice:
.01 In General. Terms used in this notice and not defined in this section 4 have
the same meaning as when used in § 30D.
.02 Clean Air Act Regulations. The
Clean Air Act regulations are the regulations prescribed by the Administrator of
the Environmental Protection Agency for
purposes of the administration of title II of
the Clean Air Act (42 U.S.C. §§ 7521, et.
seq.).
.03 Traction Battery Capacity. Traction
battery capacity is measured in kilowatt
hours from a 100 percent state of charge
to a zero percent state of charge.
.04 Motor Vehicle. The term “motor
vehicle” has the meaning given that term
by § 30(c)(2).
.05 Manufacturer. The term “manufacturer” has the meaning given that term in
the Clean Air Act regulations.
.06 Passenger Vehicle and Light Truck.
The terms “passenger vehicle” and “light
truck” do not include (1) any vehicle that
has a gross vehicle weight of more than
8,500 pounds and (2) any vehicle that is
not treated as a motor vehicle in the Clean
Air Act regulations. A low speed vehicle,
as defined in section 4.07 of this notice, is
not treated as a motor vehicle in the Clean
Air Act regulations. Accordingly, a low

2009–26 I.R.B.

speed vehicle is not a passenger vehicle or
light truck and is not required to receive a
certificate of conformity under the Clean
Air Act to qualify for the credit.
.07 Low Speed Vehicle. The term “low
speed vehicle” means a vehicle:
(1) That has at least four wheels;
(2) That is manufactured primarily for
use on public streets, roads and highways
(not including a vehicle operated exclusively on a rail or rails);
(3) That is not manufactured primarily
for off-road use, such as primarily for use
on a golf course;
(4) Whose speed attainable in one mile
is more than 20 miles per hour and not
more than 25 miles per hour on a paved
level surface; and
(5) Whose gross vehicle weight rating
is less than 3,000 pounds.
.08 Model Year. The term “model year”
means the model year determined under
the Clean Air Act regulations (see 40 CFR
§ 86–082–2).
Section 5. MANUFACTURER’S
CERTIFICATION AND QUARTERLY
REPORTS
.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 motor vehicle of a particular make,
model, and model year meets all requirements (other than those listed in section
5.02 of this notice) that must be satisfied
to claim the new qualified plug-in electric
drive motor vehicle credit allowable under
§ 30D with respect to the 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 this section 5 of
this notice, a certification with respect to
the vehicle and the certification satisfies
the requirements of section 5.03 of this notice;
(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 5.07 of this notice, a
purchaser of a motor vehicle may rely on
the manufacturer’s (or, in the case of a

2009–26 I.R.B.

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 in a taxable year beginning
after December 31, 2008, and is purchased
by the taxpayer on or before December 31,
2009;
(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 required in section 5.03(1) of this notice and
any applicable additional information required in section 5.03(2) or (3) of this notice.
(1) All Vehicles. For all vehicles, the
certification must contain the following:
(a) The name, address, and taxpayer
identification number of the certifying entity.
(b) The make, model, model year, and
any other appropriate identifiers of the motor vehicle.
(c) A statement that the vehicle is made
by a manufacturer.
(d) A statement that the vehicle is a motor vehicle within the meaning of section
4.03 of this notice.
(e) The amount of the credit for the vehicle (showing computations).
(f) The gross vehicle weight rating of
the vehicle.
(g) A statement that the motor vehicle
draws propulsion using a traction battery
with at least 4 kilowatt hours of capacity.
(h) The number of kilowatt hours, if
any, in excess of 4 kilowatt hours.
(i) A statement that the vehicle uses an
offboard source of energy to recharge the
battery.
(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 pro-

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visions of state law of each state that has
adopted the provisions under a waiver under § 209(b) of the Clean Air Act or a list
identifying each state that has adopted applicable air quality provisions with which
the vehicle does not comply.
(l) A description of the motor vehicle
safety provisions of 49 U.S.C. §§ 30101
through 30169 applicable to the vehicle
and a statement that the vehicle complies
with those provisions.
(m) A declaration, applicable to the certification, statements, and any accompanying documents, signed by a person currently authorized to bind the manufacturer
(or, in the case of a foreign vehicle manufacturer, its domestic distributor) in these
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 facts presented in support of this certification are
true, correct, and complete.”
(2) Passenger Vehicles and Light
Trucks. If the vehicle is a passenger
vehicle or light truck (determined after
application of the limitations in section
4.06 of this notice), the certification must
also contain the following:
(a) A copy of the certificate of conformity under the Clean Air Act.
(b) Documents demonstrating that the
vehicle meets or exceeds the equivalent
qualifying California low emission vehicle standard under section 243(e)(2) of the
Clean Air Act for that make and model
year.
(c) In the case of a vehicle having
a gross vehicle weight rating of 6,000
pounds or less, documents showing that
the vehicle meets or exceeds the Bin 5 Tier
II emission standard established in regulations prescribed by the Administrator
of the Environmental Protection Agency
under section 202(i) of the Clean Air Act
for that make and model year vehicle.
(d) In the case of a vehicle having a
gross vehicle weight rating of more than
6,000 pounds, but not more than 8,500
pounds, documents showing the vehicle
meets or exceeds the Bin 8 Tier II emission standard which is so established.
(3) Low Speed Vehicles. A certification
with respect to a low speed vehicle as defined in section 4.07 of this notice must
also contain the following:

June 29, 2009

(a) A statement that the vehicle has at
least four wheels.
(b) A statement that the vehicle is
manufactured primarily for use on public
streets, roads and highways.
(c) A statement that the vehicle is not
manufactured primarily for off-road use,
such as primarily for use on a golf course.
(d) Evidence that the speed attainable
by the vehicle in one mile is more than 20
miles per hour and not more than 25 miles
per hour on a paved level surface.
.04 Acknowledgement of Certification.
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 Quarterly Reporting of Sales of
Qualified Vehicles. A manufacturer (or, in
the case of a foreign vehicle manufacturer,
its domestic distributor) that has received
an acknowledgment of its certification
from the Service must submit to the Service, in accordance with section 6 of this
notice, a report of the number of qualified
plug-in electric drive motor vehicles sold
by the manufacturer (or, in the case of a
foreign vehicle manufacturer, its domestic
distributor) to consumers or retail dealers
during the calendar quarter. The quarterly
report must contain the following information:
(1) The name, address, and taxpayer
identification number of the reporting entity.
(2) The number of qualified vehicles
sold by the reporting entity to consumers
or retail dealers during the calendar quarter.
(3) The make, model, model year, and
any other appropriate identifiers of the
qualified vehicles sold during the calendar
quarter.
(4) A declaration, applicable to the
quarterly report and any accompanying
documents, signed by a person currently
authorized to bind the manufacturer (or, in
the case of a foreign vehicle manufacturer,
its domestic distributor) in these matters,
in the following form: “Under penalties
of perjury, I declare that I have examined
this report, including accompanying documents, and to the best of my knowledge
and belief, the facts presented in support

June 29, 2009

of this report are true, correct, and complete.”
.06 Acknowledgment of Quarterly Report. The Service will review the original signed quarterly report 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
report. This acknowledgment letter will
state whether purchasers may continue to
rely on the certification.
.07 Effect of Erroneous Certification,
Erroneous Quarterly Reports, or Failure
to Make Timely Quarterly Reports.
(1) Erroneous Certification or Quarterly Report. 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 the Department of
Transportation or the Environmental Protection Agency), determine that the vehicle is not a new qualified plug-in electric
drive motor 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, or in the event
that the manufacturer (or, in the case of a
foreign vehicle manufacturer, its domestic
distributor) makes an erroneous quarterly
report, the manufacturer’s (or, in the case
of a foreign vehicle manufacturer, its domestic distributor’s) right to provide a certification to future purchasers of the new
qualified plug-in electric drive motor vehicles will be withdrawn, and purchasers
who acquire a vehicle after the date on
which the Service publishes an announcement of the withdrawal may not rely on the
certification. Purchasers may continue to
rely on the certification for vehicles they
acquired on or 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 vehicle manufacturers,
their domestic distributors) are reminded
that an erroneous certification or an erroneous quarterly report may result in the

1126

imposition of penalties, including, but not
limited to, the 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.
(2) Failure to Make Timely Quarterly
Report. If a manufacturer (or, in the case
of a foreign vehicle manufacturer, its domestic distributor) fails to make a quarterly report in accordance with section 5.05
of this notice and at the time specified in
section 6.02 of this notice, the acknowledgment letter issued under section 5.04
of this notice may be withdrawn, and purchasers will not be entitled to rely on the
related certification for quarters beginning
after the date on which the Service publishes an announcement of the withdrawal
(generally, quarters beginning after the due
date of the report). If the quarterly report
is filed subsequently, the Service may reissue the acknowledgment letter and retract
the withdrawal announcement.
Section 6. TIME AND ADDRESS
FOR FILING CERTIFICATION AND
QUARTERLY REPORTS
.01 Time for Filing Certification. In order for a certification under section 5 of
this notice to be effective for new qualified plug-in electric drive motor vehicles
placed in service during a calendar year,
the certification must be received by the
Service not later than December 31 of that
calendar year.
.02 Time for Filing Quarterly Reports.
A report of sales of qualified vehicles during a quarter must be filed with the Service
at the address specified in section 6.03 of
this notice not later than the last day of the
first calendar month following the quarter
to which the report relates.
.03 Address for Filing. Certifications
and quarterly reports under section 5 of
this notice must be sent to:
Internal Revenue Service
Industry Director, LMSB, Heavy
Manufacturing & Transportation
Metro Park Office Complex — LMSB
111 Wood Avenue, South
Iselin, New Jersey 08830

2009–26 I.R.B.

Section 7. PAPERWORK REDUCTION
ACT
The collection of information contained
in this notice has been reviewed and approved by the Office of Management and
Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under
control number 1545–2137.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collections of information in this
notice are in sections 5 and 6. This information is collected and retained in order
to ensure that vehicles meet the requirements for the new qualified plug-in elec-

2009–26 I.R.B.

tric drive motor vehicle credit under § 30D.
This information will be used to determine
whether the vehicle for which the credit
is claimed by a taxpayer is property that
qualifies for the credit. The collection of
information is voluntary to obtain a benefit. The likely respondents are corporations and partnerships.
The estimated total annual reporting
burden is 280 hours.
The estimated annual burden per respondent varies from 20 hours to 35 hours,
depending on individual circumstances,
with an estimated average burden of 24
hours to complete the certification required under this notice. The estimated
number of respondents is 12.
The estimated annual frequency of responses is on occasion.

1127

Books or records relating to a collection
of information must be retained as long
as their contents may become material in
the administration of any internal revenue
law. Generally, tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
SECTION 8. DRAFTING
INFORMATION
The principal author of this notice is
Patrick S. Kirwan of the Office of Associate Chief Counsel (Passthroughs & Special Industries). For further information
regarding this notice, contact Mr. Kirwan
at (202) 622–3110 (not a toll-free call).

June 29, 2009