Electric Vehicles with Final Assembly in North America
The Inflation Reduction Act of 2022 (Public Law 117-169) amended the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now known as the Clean Vehicle Credit, and added a new requirement for final assembly in North America that took effect on August 17, 2022. For new electric, fuel cell electric, and plug-in hybrid electric vehicles acquired, delivered, and placed in service after August 16, 2022, this final assembly requirement applies. For vehicles placed in service on or after January 1, 2023, the Clean Vehicle Credit provisions are subject to updated guidance from the Internal Revenue Service (IRS) and the U.S. Department of the Treasury.
Vehicles Placed in Service After December 31, 2022
In accordance with proposed IRS regulations, beginning January 1, 2024, buyers can reduce the clean vehicle's upfront purchase price by the amount of their Clean Vehicle Credit by choosing to transfer their credit to the dealer. Before 2024, eligible clean vehicle buyers could only receive the amount of their credit after filing their tax return. Starting January 1, 2024, dealers must submit information to the IRS through IRS Energy Credits Online to determine vehicle eligibility and amount of a Clean Vehicle Credit at the point of sale. Without this submission, buyers can't claim a tax credit on their return nor can they transfer it to a dealer. A dealer must provide the buyer a copy of the IRS's approval of the dealer's submission. For up-to-date information for dealers and consumers on the transfer of tax credits at the point-of-sale, refer to information on the IRS Clean Vehicle Tax Credit.
Specific Assembly Location Based on VIN
The build location of a particular vehicle should be confirmed by the VIN or an information label affixed to the vehicle. The U.S. Department of Transportation's NHTSA also provides a VIN decoder that can be used to identify a vehicle's build plant and country of manufacture along with other details about the vehicle. To look up a vehicle's assembly location (build plant country), submit the VIN below.
Verification of North American final assembly is an initial step toward identifying vehicles that may be eligible for the Clean Vehicle Credit, but note that further conditions for eligibility may apply depending on the purchase date. For information about clean vehicles placed in service beginning January 1, 2023, see IRS Credits for New Electric Vehicles Purchased in 2023 and After for more details. For eligibility questions, contact the manufacturer or reference information from the IRS.
Note that for some manufacturers, the build location may vary based on the specific vehicle, trim, or the date in the Model Year when it was produced because some models are produced in multiple locations. The build location of a particular vehicle should be confirmed by referring to its Vehicle Identification Number (VIN) using the VIN decoder above or an information label affixed to the vehicle. For questions about the VIN or other specific qualifying information, consumers should contact the manufacturer.
Final Assembly in North America: To be eligible for the Clean Vehicle Credit, a vehicle must have undergone final assembly in North America. In general, North America includes the United States and Puerto Rico, Canada, and Mexico for purposes of determining the location of final assembly.
The information on this page should not be viewed as an official or legally binding document. For full details and most up-to-date information on eligibility requirements, refer to IRS.gov/cleanvehicles.