n-19-22.pdf

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Phase-out of Credit for New Qualified Plug-in Electric Drive Motor Vehicles

Notice 2019-22

SECTION 1. PURPOSE
This notice announces the credit phase-out schedule for new qualified plug-in
electric drive motor vehicles sold by General Motors, LLC.
SECTION 2. BACKGROUND
Section 30D(a) of the Internal Revenue Code provides for a credit for certain new
qualified plug-in electric drive motor vehicles. The new qualified plug-in electric drive
motor vehicle credit begins to phase out for a manufacturer’s vehicles in the second
calendar quarter after the calendar quarter in which at least 200,000 of the
manufacturer’s vehicles that qualify for the credit have been sold for use or lease in the
United States (determined on a cumulative basis for sales after December 31, 2009).
Taxpayers purchasing the manufacturer’s vehicles during the first two calendar quarters
of the phase-out period may claim 50 percent of the otherwise allowable credit.
Taxpayers purchasing the manufacturer’s vehicles during the third and fourth calendar
quarters of the phase-out period may claim 25 percent of the otherwise allowable credit.
No credit is available for vehicles purchased after the last day of the fourth calendar
quarter of the phase-out period.
Notice 2009-89, 2009-48 I.R.B. 714, provides procedures for a vehicle
manufacturer (or in the case of a foreign vehicle manufacturer, its domestic distributor)

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to certify to the Internal Revenue Service (Service) both (1) that a particular make,
model and model year of vehicle qualifies as a plug-in electric drive motor vehicle and
(2) the amount of the credit allowable with respect to that vehicle.
Section 5.05 of Notice 2009-89 requires a manufacturer (or, in the case of a
foreign vehicle manufacturer, its domestic distributor) that has received from the Service
an acknowledgement of its certification for a particular make, model, and model year of
vehicle to submit to the Service a report of the number of qualified 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. A qualified vehicle is defined
for this purpose as any vehicle that is a new qualified plug-in electric drive motor
vehicle.
In accordance with section 5.05 of Notice 2009-89, General Motors, LLC has
submitted reports that indicate that its cumulative sales of qualified vehicles reached the
200,000-vehicle limit during the calendar quarter ending December 31, 2018.
Accordingly, the credit for all new qualified plug-in electric drive motor vehicles sold by
General Motors, LLC will begin to phase out April 1, 2019.
SECTION 3. SCOPE OF NOTICE
This notice applies to any make, model, or model year of new qualified plug-in
electric drive motor vehicle that is –
(1) sold by General Motors, LLC; and
(2) purchased for use or lease in the United States on or after April 1, 2019.
SECTION 4. CREDIT AMOUNT

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If a new qualified plug-in electric drive motor vehicle sold by General Motors, LLC
is purchased for use or lease on or after April 1, 2019, the allowable credit is as follows:
(1) For vehicles purchased for use or lease on or after April 1, 2019, and on or
before September 30, 2019, the credit is 50 percent of the otherwise allowable amount
determined under § 30D(b);
(2) For vehicles purchased for use or lease on or after October 1, 2019, and on
or before March 31, 2020, the credit is 25 percent of the otherwise allowable amount
determined under § 30D(b);
(3) For vehicles purchased for use or lease on or after April 1, 2020, no credit is
allowable.

Qualifying
Vehicle
Full Credit When
Purchased through
3/31/2019;
(first quarter =100%
credit allowed)
Reduced Credit When
Purchased from
4/1/2019 through
9/30/2019
(2
nd
& 3
rd
quarters =
50% credit allowed)
Reduced Credit When
Purchased from
10/1/2019 through
3/31/2020
(4
th
& 5
th
quarters = 25%
credit allowed)
Credit
available
starting
4/1/2020
Chevrolet
Volt
2011-2019

$7,500

$3,750

$1,875

$0

Chevrolet
Spark EV
2014-2016

$7,500

$3,750

$1,875

$0
Chevrolet
Bolt
2017-2019

$7,500

$3,750

$1,875

$0

Cadillac ELR
2014, 2016

$7,500

$3,750

$1,875

$0

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SECTION 5: DRAFTING INFORMATION
The principal author of this notice is Maggie Stehn of the Office of Associate Chief
Counsel (Passthroughs & Special Industries). For further information regarding this
notice contact Ms. Stehn at (202) 317-4547 (not a toll-free call).

Cadillac CT6
Plug-In
2017-2018

$7,500

$3,750

$1,875

$0