Par. 4. Sections 1.45W-0 through 1.45W-5 are added to read as follows:
(a) In general. The section 45W regulations (defined in paragraph (b)(12) of this section) apply for purposes of determining the availability and amount of any credit under section 45W of the Internal Revenue Code (Code) with respect to a qualified commercial clean vehicle placed in service by a taxpayer during such taxpayer's taxable year (section 45W credit). Paragraph (b) of this section provides definitions of terms for purposes of applying section 45W and the section 45W regulations. Section 1.45W-2 provides rules for determining the per-vehicle credit amount under section 45W(b). Section 1.45W-3 provides rules related to the definition of qualified commercial clean vehicle under section 45W(c). Section 1.45W-4 provides special rules related to section 45W(d). Section 1.45W-5 provides reporting requirements for purposes of section 45W.
(b) Definitions. The following definitions apply for purposes of section 45W and the section 45W regulations. For definitions specific to incremental cost calculations, see § 1.45W-2(d).
(1) Battery. Battery means a collection of one or more battery modules, each of which has two or more battery cells, electrically configured in series or parallel, to create voltage or current. The term battery does not include items such as thermal management systems or other parts of a battery cell or module that do not directly contribute to the electrochemical storage of energy within the battery, such as battery cell cases, cans, or pouches.
(2) Battery electric vehicle or BEV. Battery electric vehicle or BEV means a vehicle propelled solely by an electric motor that draws electricity from batteries capable of being recharged from an external source of electricity.
(3) Fuel cell electric vehicle or FCEV. Fuel cell electric vehicle or FCEV means a vehicle—
(i) That is propelled by power derived from one or more cells that convert chemical energy directly into electricity by combining oxygen with hydrogen fuel that is stored on board the vehicle in any form and may or may not require reformation prior to use; and
(ii) That, in the case of a light-duty vehicle (that is, a passenger automobile or light truck), has received on or after August 8, 2005 (the date of the enactment of section 30B of the Code), a certificate indicating that such vehicle meets or exceeds the Bin 5 Tier II emission level established in regulations in 40 CFR chapter I prescribed by the Administrator of the Environmental Protection Agency (EPA) under section 202(i) of the Clean Air Act (CAA) (42 U.S.C. 7521(i)) for that make and model year vehicle.
(4) Gross vehicle weight rating or GVWR. Gross vehicle weight rating or GVWR has the meaning provided in 40 CFR 86.082-2 and 49 CFR 571.3(b).
(5) Manufacturer— (i) In general. Manufacturer means any manufacturer within the meaning of the regulations in 40 CFR chapter I prescribed by the Administrator of the EPA for purposes of the administration of title II of the CAA (42 U.S.C. 7521 et seq. ) and as defined in 42 U.S.C. 7550(1). If multiple manufacturers are involved in the production of a vehicle, the requirements of section 30D(d)(3) must be met by the manufacturer that satisfies the reporting requirements of the greenhouse gas emissions standards set by the EPA under the CAA (42 U.S.C. 7521 et seq. ) for the subject vehicle.
(ii) Modification of a new motor vehicle. If a manufacturer modifies a new motor vehicle (as defined in 42 U.S.C. 7550(3)) that does not satisfy the requirements of section 45W(c)(3) so that the vehicle, after modification, does satisfy such requirements, then such manufacturer may satisfy the requirements of section 30D(d)(3) of the Code and § 1.30D-2(b)(28)(i) for purposes of paragraph (b)(5)(i) of this section if the modification occurs prior to the vehicle being placed in service.
(6) Placed in service. A qualified commercial clean vehicle is considered to be placed in service on the date the taxpayer takes possession of the vehicle.
(7) Plug-in hybrid electric vehicle or PHEV. Plug-in hybrid electric vehicle or PHEV means a vehicle that uses batteries that can be recharged from an external source of electricity to power an electric motor that propels the vehicle to a significant extent, and another fuel, such as gasoline or diesel, to power an internal combustion engine or other propulsion source.
(8) Plug-in hybrid fuel cell electric vehicle or PHFCEV. Plug-in hybrid fuel cell electric vehicle or PHFCEV means a vehicle that uses batteries that can be recharged from an external source of electricity to power an electric motor that propels the vehicle to a significant extent and a hydrogen fuel source that powers an electric motor through the fuel cell system.
(9) Qualified commercial clean vehicle. Qualified commercial clean vehicle means a vehicle that meets the requirements of section 45W(c) and § 1.45W-3(b) through (d). Vehicles that may qualify as qualified commercial clean vehicles include BEVs, FCEVs, PHEVs, and PHFCEVs. A vehicle does not meet the requirements of section 45W(c) if—
(i) The qualified manufacturer fails to provide a periodic written report for such vehicle prior to the vehicle being placed in service by the taxpayer claiming the credit that reports the vehicle identification number of such vehicle and certifies compliance with the requirements of section 45W(c);
(ii) The qualified manufacturer provides incorrect information with respect to the periodic written report for such vehicle; or
(iii) The qualified manufacturer fails to update its periodic written report in the event of a material change with respect to such vehicle.
(10) Qualified manufacturer. Qualified manufacturer means a manufacturer that meets the requirements described in section 30D(d)(3) at the time the manufacturer submits a periodic written report to the Internal Revenue Service (IRS) under a written agreement described in section 30D(d)(3). The term qualified manufacturer does not include any manufacturer whose qualified manufacturer status has been terminated by the IRS. The IRS may terminate qualified manufacturer status for fraud, intentional disregard, or gross negligence with respect to any requirements of section 45W, the section 45W regulations, or any guidance under section 45W, including with respect to the periodic written reports described in section 30D(d)(3) and this paragraph (b)(10). The IRS may also terminate qualified manufacturer status for fraud, intentional disregard, or gross negligence with respect to any requirement of section 25E or 30D or any regulations in this chapter or guidance thereunder.
(11) Secretary. Secretary has the meaning provided in section 7701(a)(11)(B) of the Code.
(12) Section 45W regulations. Section 45W regulations means this section and §§ 1.45W-2 through 1.45W-5.
(13) Statutory references —(i) Chapter 1. C hapter 1 means chapter 1 of the Code.
(ii) Code. Code means the Internal Revenue Code.
(iii) Subtitle A. S ubtitle A means subtitle A of the Code.
(c) Applicability date. This section applies to qualified commercial clean vehicles placed in service in taxable years ending after [date of publication of the final regulations in the Federal Register ].