# Prop. Treas. Reg. § 1.45W-0: Table of contents. Proposed regulation, not in force. REG-118269-23, 90 FR 3506, published 2025-01-14 . Interprets 26 U.S.C. § 45W. Par. 4. Sections 1.45W-0 through 1.45W-5 are added to read as follows: This section lists the captions contained in §§ 1.45W-1 through 1.45W-5. § 1.45W-1Credit for qualified commercial clean vehicles; definitions. (a) In general. (b) Definitions. (1) Battery. (2) Battery electric vehicle or BEV. (3) Fuel cell electric vehicle of FCEV. (4) Gross Vehicle Weight Rating or GVWR. (5) Manufacturer. (6) Placed in service. (7) Plug-in hybrid electric vehicle or PHEV. (8) Plug-in hybrid fuel cell electric vehicle or PHFCEV. (9) Qualified commercial clean vehicle. (10) Qualified manufacturer. (11) Secretary. (12) Section 45W regulations. (13) Statutory references. (i) Chapter 1. (ii) Code. (iii) Subtitle A. (c) Applicability date. § 1.45W-2Amount of section 45W credit; incremental cost. (a) Per vehicle amount. (b) Incremental cost. (1) In general. (2) Manufacturer's cost. (3) Retail price equivalent. (i) In general. (ii) Retail price. (iii) Retail delivered price. (iv) Safe harbor. (4) Comparable vehicle. (i) In general. (ii) Gasoline- or diesel-powered vehicle by same manufacturer. (iii) Vehicle comparable in size and use. (iv) Example. (A) Facts. (B) Analysis. (c) Incremental cost equations and calculations. (1) ICE powertrain cost. (2) Battery electric vehicles. (3) Plug-in hybrid electric vehicles. (4) Fuel cell electric vehicles. (5) Plug-in hybrid fuel cell electric vehicles. (6) Incremental cost determined exclusive of auxiliary power units. (7) Incremental cost determine inclusive of additional batteries, fuel cells, or hydrogen storage. (8) Negative incremental cost treated as zero. (9) Incremental cost if no comparable vehicle exists. (10) Taxpayer reliance on qualified manufacturer's incremental cost determination. (11) Safe harbor. (d) Definitions. (1) Battery. (2) Electric traction drive system and components. (3) Electrical accessories. (4) Engine and engine components. (5) Fuel cell. (6) Hydrogen storage. (7) Hydrogen storage cost. (8) Mechanical accessories. (9) Transmission. (e) Examples. (1) Example 1. (i) Facts. (ii) Analysis. (2) Example 2. (i) Facts. (ii) Analysis. (3) Example 3. (i) Facts. (ii) Analysis. (f) Incremental cost of qualified commercial clean vehicle previously placed in service by another person or entity. (1) In general. (2) Age of a qualified commercial clean vehicle previously placed in service by another person or entity. (3) Residual value factor. (4) Example. (i) Facts. (ii) Analysis. (g) Applicability date. § 1.45W-3Qualified commercial clean vehicle. (a) In general. (b) Acquired for use or lease and not for resale by the taxpayer. (1) In general. (2) Recharacterization of lease. (c) Type of vehicle. (1) In general. (2) On-road vehicle. (3) Mobile machinery. (d) Electric motor and battery requirements. (1) In general. (2) Battery capable of being recharged from an external source of electricity. (e) Applicability date. § 1.45W-4Special rules. (a) No double benefit. (1) Previous allowance of section 45W or 30D credit. (2) Allowance of other deduction or credit. (b) Credit ineligibility resulting from certain transactions and uses. (1) In general. (2) Cancelled sale. (3) Vehicle return. (4) Resale. (5) Less than 100 percent trade or business use in taxable year vehicle is placed in service. (c) Recapture. (1) In general. (2) Recapture in the case of less than 10 percent trade or business use. (i) In general. (ii) Applicability to vehicles placed in service by a tax-exempt entity. (d) Elective payment elections. (e) Leases. (f) Applicability date. § 1.45W-5Reporting requirements. (a) Requirement to file return. (b) Credit may generally be claimed on only one tax return. (1) In general. (2) Grantor trusts. (3) Partnerships and S corporations. (c) Taxpayer reliance on manufacturer certifications and periodic written reports to the IRS. (d) Applicability date.