Yes, you can claim the new clean vehicle credit if your vehicle's classification changed since it was purchased, provided certain conditions are met. Eligible taxpayers who placed in service an eligible vehicle on or after January 1, 2023, may claim the credit on their tax return based on the updated vehicle classification definition provided in Notice 2023-16 issued on February 3, 2023, and incorporated in the proposed regulations, and the associated Manufacturer's Suggested Retail Price (MSRP) limitation.
All vehicles that were classified as an SUV, van, or pickup truck for the purpose of the new clean vehicle tax credit prior to the updated notice continue to be subject to the same $80,000 MSRP limitation. Some vehicles that were previously subject to the $55,000 MSRP limitation are now classified as SUVs and therefore get the benefit of the $80,000 MSRP limitation. The vehicles now classified as SUVs for this purpose include but may not be limited to the 2023 Cadillac Lyriq, the 2022 and 2023 Ford Mustang Mach-E, certain variants of the 2022 and 2023 Tesla Model Y, certain variants of the 2022 and 2023 Volkswagen ID.4, and the 2022 and 2023 Ford Escape Plug-In Hybrid.
In the case where vehicles have been reclassified for the purpose of this credit, taxpayers should obtain a report from the seller. Vehicles placed in service on or after April 18, 2023, must also meet the critical minerals and battery sourcing requirements to claim the credit.
Sources:
§ 30D. Clean vehicle credit
Notice 2009-89
FS-2023-4
FS-2023-22
FS-2023-29
FS-2023-8
