n-08-33.pdf

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Part III - Administrative, Procedural, and Miscellaneous

Credit for New Qualified Alternative Motor Vehicles
(Qualified Fuel Cell Motor Vehicles)

Notice 2008-33

SECTION 1. PURPOSE
This notice sets forth interim guidance, pending the issuance of regulations,
relating to the new fuel cell motor vehicle credit under § 30B(a)(1) and (b) 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 vehicle of a particular make, model, and model year meets certain
requirements that must be satisfied to claim the new qualified fuel cell motor vehicle
credit under § 30B(a)(1) and (b); and
(2) the amount of the credit allowable with respect to that vehicle.
This notice also provides guidance to taxpayers who purchase 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

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the rules set forth in this notice.
SECTION 2. BACKGROUND
Section 30B(a)(1) provides for a credit determined under § 30B(b) for certain new
qualified fuel cell motor vehicles. The base amount of the new qualified fuel cell motor
vehicle credit varies with the gross vehicle weight rating of the vehicle. The base
amount of the credit applicable to vehicles having a gross vehicle weight of not more
than 8,500 pounds is $8,000 for vehicles placed in service on or before December 31,
2009, and $4,000 for vehicles placed in service after that date. The base amount of the
credit applicable to heavier vehicles varies from $10,000 to $40,000 and is not reduced
for vehicles placed in service after December 31, 2009. Passenger automobiles and
light trucks, as defined in section 4 of this notice are eligible for an additional fuel
economy amount that varies with the rated fuel economy of a qualifying vehicle
compared to the 2002 model year city fuel economy for a vehicle in its weight class.
SECTION 3. SCOPE OF NOTICE
.01 Vehicles Covered. This notice applies only to fuel cell motor vehicles. This
notice applies with respect to a fuel cell motor vehicle whether such vehicle is a
passenger automobile, a light truck, or a motor vehicle other than a passenger
automobile or light truck.
.02 Rules Common to All Qualifying Vehicles. This notice does not address a
number of rules that are common to all motor vehicles that qualify for credits under
§ 30B. These rules include: (1) rules under which lessors may claim the credits
allowable under § 30B; (2) the rule preventing the credits from being used to reduce

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alternative minimum tax liability; and (3) rules relating to recapture of the credit. Certain
rules applicable to all motor vehicles that qualify for credits under § 30B are described in
Fact Sheet 2007-9 (http://www.irs.ustreas.gov/newsroom/article/0,,id=165649,00.html).
SECTION 4. MEANING OF TERMS
The following definitions apply for purposes of this notice:
(1) Passenger Automobile and Light Truck. Section 30B provides that the terms
"passenger automobile" and "light truck" have the meaning given in 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.). Those
regulations currently do not include a definition of these terms, but § 30B(b)(2)(B)
provides the 2002 model year city fuel economy tables that must be used to determine
the amount of the credit for passenger automobiles and light trucks. Those tables do
not prescribe the fuel economy for vehicles having a gross vehicle weight of more than
8,500 pounds. Accordingly, until either the Environmental Protection Agency issues
regulations or future guidance issued by the Service provides otherwise (whichever
occurs first), any vehicle having a gross vehicle weight of more than 8,500 pounds will
not be treated as a passenger automobile or light truck for purposes of this notice.
(2) City Fuel Economy. The term "city fuel economy" has the meaning prescribed
in 40 CFR § 600.002-85(11). If fuel is stored on board a fuel cell motor vehicle as
hydrogen and not in a form that requires reformation prior to use, city fuel economy is
determined by reference to the consumption of hydrogen. If fuel is stored on board a
fuel cell motor vehicle in a form that requires reformation prior to use, city fuel economy

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is determined by reference to the consumption of such fuel.
(3) Gasoline Gallon Equivalent. In the case of a motor vehicle that does not use
gasoline, the 2002 model year city fuel economy is determined on a gasoline-gallon-
equivalent basis. If fuel is stored on board a fuel cell motor vehicle as hydrogen and not
in a form that requires reformation prior to use, the gasoline gallon equivalent for the
2002 model year city fuel economy is determined by converting miles per gallon of
gasoline into miles per kilogram of hydrogen at a conversion ratio of 0.98 mile per
kilogram of hydrogen for each mile per gallon of gasoline. Thus, for example, the 2002
model year city fuel economy for a hydrogen-fueled passenger automobile in the 7,000
to 8,500 pounds vehicle inertia weight class is 11.1 miles per kilogram of hydrogen (0.98
x 11.3 (the 2002 model year city fuel economy in miles per gallon of gasoline)). If fuel
(other than gasoline) is stored on board a fuel cell motor vehicle in a form that requires
reformation prior to use, the gasoline gallon equivalent for the 2002 model year city fuel
economy may be obtained from the Environmental Protection Agency, Office of
Transportation and Air Quality at the following address:
Mailing Address Courier Address
USEPA Headquarters USEPA Headquarters
Ariel Rios Building Ariel Rios Building
1200 Pennsylvania Avenue, N.W. 1200 Pennsylvania Avenue, N.W.
Mail Code: 6401A Room 6502A
Washington, DC 20460 Washington, DC 20004

(4) Vehicle Inertia Weight Class. The term "vehicle inertia weight class" means,
with respect to a motor vehicle, its inertia weight class determined under 40 CFR
§ 86.129-94. Under 40 CFR § 86.082-2, the inertia weight class is the class (a group of
test weights) into which a vehicle is grouped based on its loaded vehicle weight in

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accordance with the provisions of 40 CFR part 86.
SECTION 5. 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 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 fuel cell motor vehicle credit, and the amount of the credit allowable under
§ 30B(a)(1) and (b) 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 section 6 of this
notice, a certification with respect to the vehicle and the certification satisfies the
requirements of section 5.03 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 5.05 of this notice, a
purchaser of a 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 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:

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(1) The vehicle is placed in service by the taxpayer after December 31, 2005, and
is purchased on or before December 31, 2014;
(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.
(1) All Vehicles. For all vehicles, the certification must contain the following
information:
(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) The amount of the credit for the vehicle (showing computations);
(e) The gross vehicle weight rating of the vehicle;
(f) A statement that the vehicle is propelled by power derived from one or more
cells that convert chemical energy directly into electricity by combining oxygen with
hydrogen fuel which is stored on board the vehicle in any form and may or may not
require reformation prior to use;
(g) A statement that the vehicle complies with the applicable provisions of the
Clean Air Act;
(h) A statement that the vehicle complies with the applicable air quality provisions

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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;
(i) A statement that the vehicle complies with the motor vehicle safety provisions
of 49 U.S.C. §§ 30101 through 30169; and
(j) 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 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 Automobiles and Light Trucks. If the vehicle is a passenger
automobile or light truck, the certification must include a copy of the certificate (received
on or after August 8, 2005) that the vehicle meets or exceeds the applicable Bin 5 Tier II
emission standard established in regulations prescribed by the Administrator of the
Environmental Protection Agency under § 202(i) of the Clean Air Act for that make and
model year vehicle.
(3) Additional Fuel Economy Credit. If the manufacturer (or, in the case of a
foreign manufacturer, its domestic distributor) is certifying that a passenger automobile
or light truck is eligible for the additional fuel economy credit allowable under
§ 30B(b)(2), the certification must also contain the following information:

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(a) The vehicle inertia weight class of the vehicle; and
(b) The city fuel economy of the vehicle.
.04 Acknowledgment 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 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 the Department of Transportation or the
Environmental Protection Agency), determine that the vehicle is not a new qualified fuel
cell 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, 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 new fuel cell 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

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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 imposition of penalties--
(1) under § 7206 for fraud and making false statements; and
(2) 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).
SECTION 6. TIME AND ADDRESS FOR FILING CERTIFICATION
.01 Time for Filing Certification. In order for a certification under section 5 of this
notice to be effective for new qualified fuel cell motor vehicles placed in service during a
calendar year beginning after December 31, 2007, the certification must be received by
the Service not later than December 31
st
of that calendar year. In order for a
certification under section 5 of this notice to be effective for new fuel cell motor vehicles
placed in service during 2006 and 2007, the certification must be received by the
Service not later than December 31, 2008.
.02 Address for Filing. Certifications under section 5 of this notice must be sent
to:

Internal Revenue Service
Industry Director, Large and Mid-Size Business,
Heavy Manufacturing and Transportation
Metro Park Office Complex -- LMSB
111 Wood Avenue, South
Iselin, New Jersey 08830

SECTION 7. PAPERWORK REDUCTION ACT

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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 1545-2028.
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 section 5. This information is
required to be collected and retained in order to ensure that vehicles meet the
requirements for the new qualified fuel cell motor vehicle credit under § 30B(a)(1) and
(b). 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 required to obtain a benefit. The likely respondents are corporations and
partnerships.
The estimated total annual reporting burden is 200 hours.
The estimated annual burden per respondent varies from 35 hours to 45 hours,
depending on individual circumstances, with an estimated average burden of 40 hours
to complete the certification required under this notice. The estimated number of
respondents is 5.
The estimated annual frequency of responses is on occasion.
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

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U.S.C. 6103.
SECTION 8. DRAFTING INFORMATION
The principal author of this notice is Jaime C. Park of the Office of Associate
Chief Counsel (Passthroughs & Special Industries). For further information regarding
this notice, contact Jaime C. Park at (202) 622-3110 (not a toll-free call).