There were significant changes made to Federal and State Tax definitions specifically for the New Clean Vehicle Credit.

For a vehicle to qualify for the new clean vehicle credit, its manufacturer’s suggested retail price (MSRP) cannot exceed:

                       $80,000 for a van, SUV or pickup truck; or

                       $55,000 for any other vehicle

This change also means that some vehicles that were formerly classified as “other vehicles” subject to the $55,000 cap are now classified as SUVs subject to the $80,000 price cap.

Taxpayers must rely on this new issued guidance provided under Notice 2023-16, these new definitions are reflected in the Clean Vehicle Qualified Manufacturer Requirements page on the IRS website, which lists make and models that may be eligible for the clean vehicle credits.