84098 Federal Register / Vol. 88, No. 231 / Monday, December 4, 2023 / Proposed Rules 

OF THE FINAL RULE,] the last 25 hours 

of recorded information using a recorder 

that meets the standards of TSO–C123c, 

or later revision. 

* * * * * 

PART 121—OPERATING 

REQUIREMENTS: DOMESTIC, FLAG, 

AND SUPPLEMENTAL OPERATIONS 

■ 3. The authority citation for part 121 

continues to read as follows: 

Authority: 49 U.S.C. 106(f), 106(g), 40103, 

40113, 40119, 41706, 42301 preceding note 

added by Pub. L. 112–95, sec. 412, 126 Stat. 

89, 44101, 44701–44702, 44705, 44709– 

44711, 44713, 44716–44717, 44722, 44729, 

44732; 46105; Pub. L. 111–216, 124 Stat. 

2348 (49 U.S.C. 44701 note); Pub. L. 112–95, 

126 Stat. 62 (49 U.S.C. 44732 note); Pub. L. 

115–254, 132 Stat. 3186 (49 U.S.C. 44701 

note). 

■ 4. Amend § 121.359 by revising 

paragraphs (i)(2) and (j)(2) to read as 

follows: 

§ 121.359 Cockpit voice recorders. 

* * * * * 

(i) * * * 

(2) Retains at least— 

(i) The last 2 hours of recorded 

information using a recorder that meets 

the standards of TSO–C123a, or later 

revision; or 

(ii) If manufactured on or after [ONE 

YEAR AFTER THE EFFECTIVE DATE 

OF THE FINAL RULE], the last 25 hours 

of recorded information using a recorder 

that meets the standards of TSO–C123c, 

or later revision; and 

* * * * * 

(j) * * * 

(2) Retains at least— 

(i) The last 2 hours of recorded 

information using a recorder that meets 

the standards of TSO–C123a, or later 

revision; or 

(ii) If manufactured on or after [ONE 

YEAR AFTER THE EFFECTIVE DATE 

OF THE FINAL RULE], the last 25 hours 

of recorded information using a recorder 

that meets the standards of TSO–C123c, 

or later revision; and 

* * * * * 

PART 125—CERTIFICATION AND 

OPERATIONS: AIRCRAFT HAVING A 

SEATING CAPACITY OF 20 OR MORE 

PASSENGERS OR A MAXIMUM 

PAYLOAD CAPACITY OF 6,000 

POUNDS OR MORE; AND RULES 

GOVERNING PERSONS ON BOARD 

SUCH AIRCRAFT 

■ 5. The authority citation for part 125 

continues to read as follows: 

Authority: 49 U.S.C. 106(f), 106(g), 40113, 

44701–44702, 44705, 44710–44711, 44713, 

44716–44717, 44722. 

■ 6. Amend § 125.227 by revising 

paragraphs (g)(2) and (h)(2) to read as 

follows: 

§ 125.227 Cockpit voice recorders. 

* * * * * 

(g) * * * 

(2) Retains at least— 

(i) The last 2 hours of recorded 

information using a recorder that meets 

the standards of TSO–C123a, or later 

revision; or 

(ii) If manufactured on or after [ONE 

YEAR AFTER THE EFFECTIVE DATE 

OF THE FINAL RULE], the last 25 hours 

of recorded information using a recorder 

that meets the standards of TSO–C123c, 

or later revision; and 

* * * * * 

(h) * * * 

(2) Retains at least— 

(i) The last 2 hours of recorded 

information using a recorder that meets 

the standards of TSO–C123a, or later 

revision; or 

(ii) If manufactured on or after [ONE 

YEAR AFTER THE EFFECTIVE DATE 

OF THE FINAL RULE], the last 25 hours 

of recorded information using a recorder 

that meets the standards of TSO–C123c, 

or later revision; and 

* * * * * 

PART 135—OPERATING 

REQUIREMENTS: COMMUTER AND 

ON DEMAND OPERATIONS AND 

RULES GOVERNING PERSONS ON 

BOARD SUCH AIRCRAFT 

■ 7. The authority citation for part 135 

continue to read as follows: 

Authority: 49 U.S.C. 106(f), 106(g), 40113, 

41706, 44701–44702, 44705, 44709, 44711– 

44713, 44715–44717, 44722, 44730, 45101– 

45105; Pub. L. 112–95, 126 Stat. 58 (49 U.S.C. 

44730). 

■ 8. Amend § 135.151 by revising 

paragraphs (g)(1)(iii) and (g)(2)(iii) to 

read as follows: 

§ 135.151 Cockpit voice recorders. 

* * * * * 

(g) * * * 

(1) * * * 

(iii) Retains at least— 

(A) The last 2 hours of recorded 

information using a recorder that meets 

the standards of TSO–C123a, or later 

revision; or 

(B) If manufactured on or after [ONE 

YEAR AFTER THE EFFECTIVE DATE 

OF THE FINAL RULE], the last 25 hours 

of recorded information using a recorder 

that meets the standards of TSO–C123c, 

or later revision. 

* * * * * 

(2) * * * 

(iii) Retains at least— 

(A) The last 2 hours of recorded 

information using a recorder that meets 

the standards of TSO–C123a, or later 

revision; or 

(B) If manufactured on or after [ONE 

YEAR AFTER THE EFFECTIVE DATE 

OF THE FINAL RULE], the last 25 hours 

of recorded information using a recorder 

that meets the standards of TSO–C123c, 

or later revision. 

* * * * * 

Issued under authority provided by 49 

U.S.C. 106(f) and 44701(a) in Washington, 

DC. 

Lawrence Fields, 

Acting Executive Director, Flight Standards 

Service. 

[FR Doc. 2023–26144 Filed 12–1–23; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–118492–23] 

RIN 1545–BQ99 

Section 30D Excluded Entities 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This document contains 

proposed regulations that would 

provide guidance regarding the 

excluded entity provisions with respect 

to the clean vehicle credit as amended 

by the Inflation Reduction Act of 2022. 

The proposed regulations would also 

provide clarity on definitions with 

respect to new clean vehicles eligible for 

the clean vehicle credit. The proposed 

regulations would affect qualified 

manufacturers of new clean vehicles 

and taxpayers who purchase and place 

in service new clean vehicles. 

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by January 18, 2024. 

Requests for a public hearing must be 

submitted as prescribed in the 

‘‘Comments and Requests for a Public 

Hearing’’ section. 

ADDRESSES: Commenters are strongly 

encouraged to submit public comments 

electronically via the Federal 

eRulemaking Portal at https://

www.regulations.gov (indicate IRS and 

REG–118492–23) by following the 

online instructions for submitting 

comments. Requests for a public hearing 

must be submitted as prescribed in the 

‘‘Comments and Requests for a Public 

Hearing’’ section. Once submitted to the 

Federal eRulemaking Portal, comments 

cannot be edited or withdrawn. The 


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Federal Register / Vol. 88, No. 231 / Monday, December 4, 2023 / Proposed Rules 84099 

Department of the Treasury (Treasury 

Department) and the IRS will publish 

for public availability any comments 

submitted to the IRS’s public docket. 

Send paper submissions to: 

CC:PA:01:PR (REG–118492–23), Room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

the Office of Associate Chief Counsel 

(Passthroughs & Special Industries) at 

(202) 317–6853 (not a toll-free number); 

concerning submissions of comments 

and requests for a public hearing, call 

Vivian Hayes (202) 317–6901 (not a tollfree number) or send an email to 

publichearings@irs.gov (preferred). 

SUPPLEMENTARY INFORMATION: 

Background 

I. Overview 

Public Law 117–169, 136 Stat. 1818 

(August 16, 2022), commonly known as 

the Inflation Reduction Act of 2022 

(IRA), amended section 30D of the 

Internal Revenue Code (Code). Section 

30D provides a credit (section 30D 

credit) against the tax imposed by 

chapter 1 of the Code (chapter 1) with 

respect to each new clean vehicle that 

a taxpayer purchases and places in 

service. The section 30D credit is 

determined and allowable with respect 

to the taxable year in which the 

taxpayer places the new clean vehicle in 

service. 

This document contains proposed 

amendments to the Income Tax 

Regulations (26 CFR part 1) under 

section 30D. These proposed regulations 

supplement a notice of proposed 

rulemaking (REG–120080–22) published 

in the Federal Register (88 FR 23370) on 

April 17, 2023 (April 2023 proposed 

regulations) that contains initial 

proposed regulations under section 30D 

as amended by the IRA, as well as a 

notice of proposed rulemaking (REG– 

113064–23) published in the Federal 

Register (88 FR 70310) on October 10, 

2023 (October 2023 proposed 

regulations) that contains initial and 

additional proposed regulations under 

sections 25E, 30D, and 6213 of the Code. 

This notice of proposed rulemaking 

does not address written comments that 

were submitted in response to the April 

2023 proposed regulations or the 

October 2023 proposed regulations. Any 

comments received in response to this 

notice of proposed rulemaking will be 

addressed in the Treasury Decision 

adopting these regulations as final 

regulations. 

II. Section 30D 

Section 30D was enacted by section 

205(a) of the Energy Improvement and 

Extension Act of 2008, Division B of 

Public Law 110–343, 122 Stat. 3765, 

3835 (October 3, 2008), to provide a 

credit for purchasing and placing in 

service new qualified plug-in electric 

drive motor vehicles. Section 30D has 

been amended several times since its 

enactment, most recently by section 

13401 of the IRA. In general, the 

amendments made by section 13401 of 

the IRA to section 30D apply to vehicles 

placed in service after December 31, 

2022, except as provided in section 

13401(k)(2) through (5) of the IRA. 

Effective beginning on April 18, 2023, 

section 30D(b) provides a maximum 

credit of $7,500 per new clean vehicle, 

consisting of $3,750 if certain critical 

minerals requirements are met and 

$3,750 if certain battery components 

requirements are met. These 

requirements are described in section 

30D(e)(1) and (2), respectively, and the 

preamble to the April 2023 proposed 

regulations. 

The amount of the section 30D credit 

is treated as a personal credit or a 

general business credit depending on 

the character of the vehicle. In general, 

under section 30D(c)(2), the section 30D 

credit is treated as a nonrefundable 

personal credit allowable under subpart 

A of part IV of subchapter A of chapter 

1. However, under section 30D(c)(1), so 

much of the credit that would be 

allowed under section 30D(a) that is 

attributable to property that is of a 

character subject to an allowance for 

depreciation is treated as a current year 

general business credit under section 

38(b) and not allowed under section 

30D(a). Section 38(b)(30) lists as a 

current year business credit the portion 

of the section 30D credit to which 

section 30D(c)(1) applies. The IRA did 

not amend section 30D(c)(1) or (2). 

The IRA amended section 30D(d) 

regarding the definition of a new clean 

vehicle. Section 30D(d)(1) defines ‘‘new 

clean vehicle’’ as a motor vehicle that 

satisfies the following eight 

requirements set forth in section 

30D(d)(1)(A) through (H) of the Code: 

• the original use of the motor vehicle 

must commence with the taxpayer; 

• the motor vehicle must be acquired 

for use or lease by the taxpayer and not 

for resale; 

• the motor vehicle must be made by 

a qualified manufacturer; 

• the motor vehicle must be treated as 

a motor vehicle for purposes of title II 

of the Clean Air Act; 

• the motor vehicle must have a gross 

vehicle weight rating of less than 14,000 

pounds; 

• the motor vehicle must be propelled 

to a significant extent by an electric 

motor which draws electricity from a 

battery that has a capacity of not less 

than 7 kilowatt hours, and is capable of 

being recharged from an external source 

of electricity; 

• the final assembly of the motor 

vehicle must occur within North 

America; and 

• the person who sells any vehicle to 

the taxpayer must furnish a report to the 

taxpayer and to the Secretary of the 

Treasury or her delegate (Secretary) 

containing certain specifically 

enumerated items. 

Section 30D(d)(3) defines ‘‘qualified 

manufacturer’’ as any manufacturer 

(within the meaning of the regulations 

prescribed by the Administrator of the 

Environmental Protection Agency (EPA) 

for purposes of the administration of 

title II of the Clean Air Act (42 U.S.C. 

7521 et seq.)) that enters into a written 

agreement with the Secretary under 

which such manufacturer agrees to 

make periodic written reports to the 

Secretary (at such times and in such 

manner as the Secretary may provide) 

providing vehicle identification 

numbers and such other information 

related to each vehicle manufactured by 

such manufacturer as the Secretary may 

require. 

Section 30D(d)(7) excludes from the 

definition of ‘‘new clean vehicle’’ any 

vehicle placed in service after December 

31, 2024, with respect to which any of 

the applicable critical minerals 

contained in the battery of such vehicle 

were extracted, processed, or recycled 

by a foreign entity of concern (as 

defined in section 40207(a)(5) of the 

Infrastructure Investment and Jobs Act 

(42 U.S.C. 18741(a)(5))), or any vehicle 

placed in service after December 31, 

2023, with respect to which any of the 

components contained in the battery of 

such vehicle were manufactured or 

assembled by a foreign entity of concern 

(as so defined). 

No section 30D credit is allowed with 

respect to a vehicle placed in service 

after December 31, 2032. 

III. Prior Guidance 

A. Notice 2022–46 

On October 5, 2022, the Treasury 

Department and the IRS published 

Notice 2022–46, 2022–43 I.R.B. 302. The 

notice requested general comments on 

issues arising under sections 25E and 

30D, as well as specific comments 

concerning: (1) definitions; (2) critical 

minerals and battery components; (3) 

foreign entities of concern; (4) 

recordkeeping and reporting; (5) eligible 

entities; (6) elections to transfer and 


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advance payments; and (7) recapture. 

The Treasury Department and the IRS 

received 884 comments from industry 

participants, environmental groups, 

individual consumers, and other 

stakeholders. The Treasury Department 

and the IRS appreciate the commenters’ 

interest and engagement on these issues. 

These comments have been carefully 

considered in the preparation of the 

proposed regulations. 

B. Revenue Procedure 2022–42 

On December 12, 2022, the Treasury 

Department and the IRS published 

Revenue Procedure 2022–42, 2022–52 

I.R.B. 565, providing guidance for 

qualified manufacturers to enter into 

written agreements with the IRS, as 

required in sections 30D, 25E, and 45W, 

and to report certain information 

regarding vehicles produced by such 

manufacturers that may be eligible for 

credits under these sections. In 

addition, Revenue Procedure 2022–42 

provides the procedures for sellers of 

new clean vehicles or previously-owned 

clean vehicles to report certain 

information to the IRS and the 

purchasers of such clean vehicles. 

C. April 2023 Proposed Regulations 

On April 17, 2023, the Treasury 

Department and the IRS published the 

April 2023 proposed regulations in the 

Federal Register, which provides 

proposed definitions for certain terms 

related to section 30D; proposed rules 

regarding personal and business use and 

other special rules; and additional 

proposed rules related to the critical 

mineral and battery component 

requirements. 

D. Revenue Procedure 2023–33 

On October 6, 2023, the Treasury 

Department and the IRS released 

Revenue Procedure 2023–33, which was 

published on October 23, 2023, in 

Internal Revenue Bulletin 2023–43, to 

provide guidance for taxpayers electing 

to transfer credits under section 25E or 

30D and for eligible entities receiving 

advance payments of credits under 

sections 30D and 25E. This revenue 

procedure sets forth the procedures 

under sections 30D(g) and 25E(f) for the 

transfer of the previously-owned clean 

vehicle credit and the new clean vehicle 

credit from the taxpayer to an eligible 

entity, including the procedures for 

dealer registration with the IRS, the 

procedures for the revocation and 

suspension of that registration, and the 

establishment of an advance payment 

program to eligible entities. In addition, 

this revenue procedure superseded 

sections 5.01 and 6.03 of Revenue 

Procedure 2022–42, providing new 

information for the time and manner of 

submission of seller reports, 

respectively. This revenue procedure 

also superseded sections 6.01 and 6.02 

of Revenue Procedure 2022–42, 

providing updated information on 

submission of written agreements by 

manufacturers to the IRS to be 

considered qualified manufacturers, as 

well as the method of submission of 

monthly reports by qualified 

manufacturers. 

E. October 2023 Proposed Regulations 

On October 10, 2023, the Treasury 

Department and the IRS published the 

October 2023 proposed regulations in 

the Federal Register, which provide 

guidance for elections to transfer clean 

vehicle credits under sections 30D(g) 

and 25E(f). The proposed regulations 

provide guidance for taxpayers 

intending to transfer the previouslyowned clean vehicle credit and the new 

clean vehicle credit to dealers who are 

entities eligible to receive advance 

payments of either credit. The proposed 

regulations also provide guidance for 

dealers to become eligible entities to 

receive advance payments of 

previously-owned clean vehicle credits 

or clean vehicle credits. The proposed 

regulations also provide guidance for 

recapturing the credit under sections 

30D and 25E. Finally, proposed 

§ 1.6213–2 defines the term ‘‘omission 

of a correct vehicle identification 

number’’ (VIN) for purposes of section 

6213, under which, in part, the IRS is 

authorized to make a summary 

assessment when there has been an 

omission of a correct VIN on a 

taxpayer’s return when claiming or 

electing to transfer a credit under 

section 25E or 30D. 

IV. Department of Energy Guidance 

Concurrently with the release of these 

proposed regulations, the Department of 

Energy (DOE) is releasing proposed 

guidance in the Federal Register, which 

provides proposed interpretations of 

certain terms used in the definition of 

‘‘foreign entity of concern’’ (FEOC) set 

forth in section 40207(a)(5) of the 

Infrastructure Investment and Jobs Act 

(IIJA), 42 U.S.C. 18741(a)(5), and as 

cross-referenced in section 30D(d)(7). 

Section 40207(a)(5) of the IIJA defines 

FEOC to include foreign entities covered 

by specific designations, inclusions, and 

allegations by Federal agencies as 

described in section 40207(a)(5)(A), (B), 

and (D), as well as foreign entities 

‘‘owned by, controlled by, or subject to 

the jurisdiction or direction of a 

government’’ of a covered nation under 

section 40207(a)(5)(C). Covered nations 

are defined in 10 U.S.C. 4872(d)(2) as 

the People’s Republic of China, the 

Russian Federation, the Democratic 

People’s Republic of Korea, and the 

Islamic Republic of Iran as of the date 

of publication of these proposed 

regulations. Finally, section 

40207(a)(5)(E) of the IIJA provides that 

a FEOC includes a foreign entity that the 

Secretary of Energy, in consultation 

with the Secretary of Defense and the 

Director of National Intelligence, 

determines is engaged in unauthorized 

conduct that is detrimental to the 

national security or foreign policy of the 

United States. 

The DOE proposed guidance provides 

an interpretation of section 

40207(a)(5)(C) of the IIJA. In particular, 

the DOE proposed guidance provides 

definitions for the terms ‘‘government of 

a foreign country,’’ ‘‘foreign entity,’’ 

‘‘subject to the jurisdiction,’’ and 

‘‘owned by, controlled by, or subject to 

the direction of.’’. In general, an entity 

incorporated in, headquartered in, or 

performing the relevant activities in a 

covered nation would be classified as a 

FEOC. For purposes of these rules, an 

entity would be ‘‘owned by, controlled 

by, or subject to the direction’’ of 

another entity if 25 percent or more of 

the entity’s board seats, voting rights, or 

equity interest are cumulatively held by 

such other entity. In addition, licensing 

agreements or other contractual 

agreements may also create control. 

Finally, ‘‘government of a foreign 

country’’ would be defined to include 

subnational governments and certain 

current or former senior foreign political 

figures. 

Explanation of Provisions 

I. Section 1.30D–2 Definitions 

Proposed § 1.30D–2(a) is revised to 

clarify that all definitions in the section 

apply for purposes of section 30D and 

the section 30D regulations, including 

any guidance thereunder. Proposed 

§ 1.30D–2(f) is revised to include in the 

definition of ‘‘section 30D regulations’’ 

the provisions of proposed § 1.30D–5 as 

set forth in the October 2023 proposed 

regulations and proposed § 1.30D–6 as 

set forth in these proposed regulations. 

Proposed § 1.30D–2(k) would provide, 

consistent with section 30D(d)(3), that 

‘‘manufacturer’’ means any 

manufacturer within the meaning of the 

regulations prescribed by the 

Administrator of the Environmental 

Protection Agency (EPA) for purposes of 

the administration of title II of the Clean 

Air Act (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 provided in section 


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30D(d)(3) must be met by the 

manufacturer who satisfies the reporting 

requirements of the greenhouse gas 

emissions standards set by EPA under 

the Clean Air Act (42 U.S.C. 7521 et 

seq.) for the subject vehicle. 

Proposed § 1.30D–2(l) would provide 

that a qualified manufacturer means a 

manufacturer that meets the 

requirements described in section 

30D(d)(3). A qualified manufacturer 

would 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 30D and the 

regulations and guidance thereunder, 

including with respect to the periodic 

written reports described in section 

30D(d)(3) and proposed § 1.30D–2(m) 

and any attestations, documentation, or 

certifications described in proposed 

§ 1.30D–3(e) and proposed § 1.30D–6(d), 

at the time and in the manner provided 

in the Internal Revenue Bulletin. 

Proposed § 1.30D–2(m) would provide 

that a ‘‘new clean vehicle’’ means a 

vehicle that meets the requirements 

described in section 30D(d). A new 

clean vehicle would not include any 

vehicle for which the qualified 

manufacturer does any of the following: 

(1) fails to provide a periodic written 

report for such vehicle prior to the 

vehicle being placed in service, 

reporting the VIN of such vehicle and 

certifying compliance with the 

requirements of section 30D(d); (2) 

provides incorrect information with 

respect to the periodic written report for 

such vehicle; (3) fails to update its 

periodic written report in the event of 

a material change with respect to such 

vehicle; or, (4) for new clean vehicles 

placed in service after December 31, 

2024, the qualified manufacturer fails to 

meet the requirements of proposed 

§ 1.30D–6(d). For purposes of section 

30D(d)(6), the term ‘‘new clean vehicle’’ 

includes any new qualified fuel cell 

motor vehicle (as defined in section 

30B(b)(3)) which meets the 

requirements under section 30D(d)(1)(G) 

and (H). The Treasury Department and 

the IRS request comment on whether, in 

the interest of sound tax administration 

and to provide additional transparency 

to taxpayers, it would be feasible and 

helpful for tax administration if 

qualified manufacturers were to encode 

eligibility for section 30D through a 

particular calendar year into the VIN 

using an alphanumeric combination. 

II. Section 1.30D–3 Provisions 

Proposed § 1.30D–3(d) would provide 

rules regarding excluded entities by 

reference to proposed § 1.30D–6. 

Proposed § 1.30D–3(e) would provide 

for an upfront review of conformance 

with the critical minerals requirement 

and battery components requirement. 

Specifically, proposed § 1.30D–3(e) 

would provide that for new clean 

vehicles placed in service after 

December 31, 2024, the qualified 

manufacturer must provide attestations, 

certifications and documentation 

demonstrating compliance with the 

requirements of section 30D(e), at the 

time and in the manner provided in the 

Internal Revenue Bulletin. The IRS, 

with analytical assistance from the DOE, 

will review the attestations, 

certifications, and documentations. 

III. Excluded Entities 

A. Definitions 

The proposed regulations would 

provide definitions for terms relevant to 

the excluded entity provision. To the 

extent many of these terms were defined 

in the April 2023 proposed regulations, 

these proposed regulations would 

provide the same definitions for such 

terms as is provided in proposed 

§ 1.30D–3(c). The Treasury Department 

and the IRS intend that terms relevant 

to both the critical mineral and battery 

component requirements described in 

proposed § 1.30D–3 and the excluded 

entity restrictions described in these 

proposed regulations are interpreted 

consistently. 

1. Applicable Critical Mineral 

Proposed § 1.30D–6(a)(1) would 

define ‘‘applicable critical mineral’’ as 

an applicable critical mineral as defined 

in section 45X(c)(6). Guidance regarding 

the definition of applicable critical 

minerals, including the applicable 

critical minerals that are used in electric 

vehicle batteries to facilitate the 

electrochemical processes necessary for 

energy storage, would be provided in 

forthcoming proposed regulations under 

section 45X. 

2. Assembly 

Proposed § 1.30D–6(a)(2) would 

define ‘‘assembly’’ as, with respect to 

battery components, the process of 

combining battery components into 

battery cells and battery modules. 

3. Battery 

Proposed § 1.30D–6(a)(3) would 

define ‘‘battery’’ as, for purposes of a 

new clean vehicle, a collection of one or 

more battery modules, each of which 

has two or more electrically configured 

battery cells 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. 

4. Battery Cell 

Proposed § 1.30D–6(a)(4) would 

define ‘‘battery cell’’ as a combination of 

battery components (other than battery 

cells) capable of electrochemically 

storing energy from which the electric 

motor of a new clean vehicle draws 

electricity. 

5. Battery Cell Production Facility 

Proposed § 1.30D–6(a)(5) would 

define ‘‘battery cell production facility’’ 

as a facility in which battery cells are 

manufactured or assembled. 

6. Battery Component 

Proposed § 1.30D–6(a)(6) would 

define ‘‘battery component’’ as a 

component that forms part of a battery 

and that is manufactured or assembled 

from one or more components or 

constituent materials that are combined 

through industrial, chemical, and 

physical assembly steps. Proposed 

§ 1.30D–6(a)(6) would specify that 

battery components may include, but 

are not limited to, a cathode electrode, 

anode electrode, solid metal electrode, 

separator, liquid electrolyte, solid state 

electrolyte, battery cell, and battery 

module. Constituent materials are not a 

type of battery component, although 

constituent materials may be 

manufactured or assembled into battery 

components. Some battery components 

may be made entirely of inputs that do 

not contain constituent materials. 

7. Compliant-Battery Ledger 

Proposed § 1.30D–6(a)(7) would 

define ‘‘compliant-battery ledger,’’ for a 

qualified manufacturer for a calendar 

year, as a ledger that tracks the number 

of available FEOC-compliant batteries 

for such calendar year. A compliantbattery ledger is established under the 

rules of proposed § 1.30D–6(d), 

described in part III.D. of this 

Explanation of Provisions. 

8. Constituent Materials 

Proposed § 1.30D–6(a)(8) would 

define ‘‘constituent materials’’ as 

materials that contain applicable critical 

minerals and that are employed directly 

in the manufacturing of battery 

components. Proposed § 1.30D–6(a)(8) 

would specify that constituent materials 

may include, but are not limited to, 


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powders of cathode active materials, 

powders of anode active materials, foils, 

metals for solid electrodes, binders, 

electrolyte salts, and electrolyte 

additives, as required for a battery cell. 

9. Extraction 

Proposed § 1.30D–6(a)(9) would 

define ‘‘extraction’’ to mean the 

activities performed to harvest minerals 

or natural resources from the ground or 

a body of water. Extraction would 

include, but would not be limited to, 

operating equipment to harvest minerals 

or natural resources from mines and 

wells, or to extract minerals or natural 

resources from the waste or residue of 

prior extraction. Extraction would 

conclude when activities are performed 

to convert raw mined or harvested 

products or raw well effluent to 

substances that can be readily 

transported or stored for direct use in 

critical mineral processing. Extraction 

would include the physical processes 

involved in refining. Extraction would 

not include the chemical and thermal 

processes involved in refining. 

10. Foreign Entity of Concern 

Proposed § 1.30D–6(a)(10) would 

define ‘‘foreign entity of concern 

(FEOC)’’ to have the same meaning as 

defined in section 40207(a)(5) of the 

Infrastructure Investment and Jobs Act 

(42 U.S.C. 18741(a)(5)) and guidance 

promulgated thereunder by the DOE. 

11. FEOC-Compliant 

Proposed § 1.30D–6(a)(11) would 

define ‘‘FEOC-compliant’’ to mean in 

compliance with the applicable 

excluded entity requirement under 

section 30D(d)(7). In particular, the 

proposed regulation would provide 

definitions of FEOC-compliant with 

respect to a battery component (other 

than a battery cell), applicable critical 

mineral, battery cell, or battery. This 

definition would treat battery cells 

separately from other battery 

components because battery cells 

contain applicable critical minerals (and 

associated constituent materials) as well 

as other battery components. Thus, the 

applicable rules under section 30D(d)(7) 

must be satisfied for such critical 

minerals and such components 

contained in the battery cell as well as 

the battery cell itself. A battery 

component (other than a battery cell), 

with respect to a new clean vehicle 

placed in service after December 31, 

2023, is FEOC-compliant if it is not 

manufactured or assembled by a FEOC. 

An applicable critical mineral, with 

respect to a new clean vehicle placed in 

service after December 31, 2024, is 

FEOC-compliant if it is not extracted, 

processed, or recycled by a FEOC. As 

described in part III.C.4. of this 

Explanation of Provisions, in general, 

the determination of whether an 

applicable critical mineral is FEOCcompliant would take into account each 

step of extraction, processing, or 

recycling through the step in which 

such mineral is processed or recycled 

into a constituent material, even if the 

mineral is not in a form listed in section 

45X(c)(6). A battery cell, with respect to 

a new clean vehicle placed in service 

after December 31, 2023, and before 

January 1, 2025, is FEOC compliant if it 

is not manufactured or assembled by a 

FEOC and it contains only FEOCcompliant battery components. A 

battery cell, with respect to a new clean 

vehicle placed in service after December 

31, 2024, is FEOC-compliant if it is not 

manufactured or assembled by a FEOC 

and it contains only FEOC-compliant 

battery components and applicable 

critical minerals. A battery, with respect 

to a new clean vehicle placed in service 

after December 31, 2023, is FEOCcompliant if it contains only FEOCcompliant battery components (other 

than battery cells) and FEOC-compliant 

battery cells. 

12. Manufacturing 

Proposed § 1.30D–6(a)(12) would 

define ‘‘manufacturing’’ to mean, with 

respect to a battery component, the 

industrial and chemical steps taken to 

produce a battery component. 

13. Non-Traceable Battery Materials 

Proposed § 1.30D–6(a)(13)(i) would 

define ‘‘non-traceable battery materials’’ 

to mean specifically identified lowvalue battery materials that may 

originate from multiple sources and are 

often commingled during refining, 

processing, or other production 

processes by suppliers to such a degree 

that the qualified manufacturer cannot, 

due to current industry practice, 

feasibly determine and attest to the 

origin of such battery materials. 

Proposed § 1.30D–6(a)(13)(ii), which is 

reserved, would contain the specific list 

of identified non-traceable battery 

materials. Low-value battery materials 

are those that, like the exemplar 

materials listed below, have low value 

compared to the total value of the 

battery. Where battery materials make 

up only a very small percentage of the 

value of the battery as a whole, many 

industry participants, prior to the 

passage of the IRA, had little reason to 

trace the source of these materials. As a 

result, unlike with higher value battery 

materials, tracing the source of these 

low value materials is not immediately 

feasible, which makes it in turn not 

feasible for qualified manufacturers to 

provide the necessary assurance to the 

IRS that their materials are FEOCcompliant. 

The Treasury Department and the IRS, 

after extensive consultation with the 

Department of Energy, are considering 

whether the following applicable 

critical minerals (and associated 

constituent materials) may be 

designated as identified non-traceable 

battery materials: applicable critical 

minerals contained in electrolyte salts, 

electrode binders, and electrolyte 

additives. These exemplar materials 

each account for less than two percent 

of the value of applicable critical 

minerals in the battery, and the 

Treasury Department and the IRS 

understand that industry tracing of 

these particular applicable critical 

mineral production processes is 

uncommon and third-party standards 

for doing so are underdeveloped. Other 

materials for inclusion could include, 

for example, other low-value electrode 

active materials that are also subject to 

the traceability difficulties described in 

part III.A.13. of this Explanation of 

Provisions. As discussed further below, 

the Treasury Department and the IRS 

request comment on: (1) whether other 

applicable critical minerals (and 

associated constituent materials) should 

be designated as identified nontraceable battery materials for the same 

reasons, and (2) whether an approach 

other than the proposed list of nontraceable battery materials would better 

address the traceability issues discussed 

here. As discussed in part III.B.2. of this 

Explanation of Provisions, some 

stakeholders have suggested that the 

Treasury Department and the IRS adopt 

a de minimis exception to the excluded 

entity restrictions based on value, 

weight, mass, or other considerations. In 

response to these comments, the 

Treasury Department and the IRS have 

proposed a transition rule that would 

temporarily exclude a specific list of 

identified non-traceable battery 

materials from the due diligence 

requirements of the qualified 

manufacturers. 

The Treasury Department and the IRS 

request comments on the best approach 

to addressing low-value battery 

materials for which tracing to their 

source is not immediately feasible. The 

Treasury Department and the IRS 

request comment on whether the 

proposed approach is a sound method 

of accounting for non-traceable battery 

materials, and whether other criteria 

should be used to distinguish between 

traceable and non-traceable battery 

materials. In particular, the Treasury 

Department and the IRS request 


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comments that explain whether and 

why certain battery materials are 

prohibitively difficult to trace at this 

time given current supply chains and 

current broadly available tools and 

practices for supply-chain tracing in the 

battery sector, and that explain how the 

supply chain may be limited by any 

such difficulty. The Treasury 

Department and the IRS also request 

comments explaining how the state of 

supply chains and tools and practices 

for supply-chain tracing are expected to 

evolve in the coming months and years 

for battery materials that are 

prohibitively difficult to trace at 

present. The Treasury Department and 

the IRS further request comments 

explaining the state of recordkeeping 

that is currently used in the industry to 

trace supply chains, what kind of 

recordkeeping requirements would 

facilitate better tracing of supply chains 

in the coming months and years, how to 

encourage manufacturers to adopt 

appropriate tracing systems as soon as 

practicable, and how these rules 

incentivize further shifting of supply 

chains in a manner that will strengthen 

our energy security, national security, 

and domestic manufacturing. 

In addition, the Treasury Department 

and the IRS request comment on 

whether the listed materials are 

appropriately characterized as nontraceable battery materials. The 

Treasury Department and the IRS 

further request comment on whether 

any other applicable critical minerals, 

including associated constituent 

materials, would also be appropriately 

characterized as non-traceable battery 

materials because they meet the 

required criteria. The Treasury 

Department and the IRS further request 

comment on whether other criteria 

should be applied to determine what 

qualifies as non-traceable battery 

materials, and what applicable critical 

minerals, including associated 

constituent materials, would be 

appropriately characterized as such 

materials under the suggested criteria. 

Finally, the Treasury Department and 

the IRS seek comment describing 

alternative approaches to addressing the 

challenges posed by low-value battery 

materials that are not currently feasible 

to trace to their origins. 

14. Processing 

Proposed § 1.30D–6(a)(14) would 

define ‘‘processing’’ to mean the nonphysical processes involved in the 

refining of non-recycled substances or 

materials, including the treating, baking, 

and coating processes used to convert 

such substances and materials into 

constituent materials. Processing 

includes the chemical or thermal 

processes involved in refining. 

Processing does not include the 

physical processes involved in refining. 

15. Recycling 

Proposed § 1.30D–6(a)(15) would 

define ‘‘recycling’’ to mean the series of 

activities during which recyclable 

materials containing critical minerals 

are transformed into specification-grade 

commodities and consumed in lieu of 

virgin materials to create new 

constituent materials; such activities 

result in new constituent materials 

contained in the battery from which the 

electric motor of a new clean vehicle 

draws electricity. 

B. Due Diligence and Transition Rule for 

Non-Traceable Battery Materials 

1. Due Diligence 

Proposed § 1.30D–6(b)(1) would 

provide that the qualified manufacturer 

must conduct due diligence with 

respect to all battery components and 

applicable critical minerals (and 

associated constituent materials) that 

are relevant to determining whether 

such components or minerals are FEOCcompliant. This due diligence must 

comply with standards of tracing for 

battery materials available in the 

industry at the time of the attestation or 

certification that enable the qualified 

manufacturer to know with reasonable 

certainty the provenance of applicable 

critical minerals, constituent materials, 

and battery components. Such tracing 

standards may include international 

battery passport certifications and 

enhanced battery material and 

component tracking and labeling. 

Proposed § 1.30D–6(b)(1) would specify 

that reasonable reliance on a supplier 

attestation or certification will be 

considered due diligence if the qualified 

manufacturer does not know or have 

reason to know after due diligence that 

such supplier attestation or certification 

is incorrect. 

The due diligence must be conducted 

by the qualified manufacturer prior to 

its determination of any information to 

establish a compliant-battery ledger 

described in proposed § 1.30D–6(d), and 

on an on-going basis. A battery is not 

considered FEOC-compliant unless the 

qualified manufacturer has conducted 

such due diligence with respect to all 

such components and applicable critical 

minerals of the battery and provided 

required attestations or certifications 

described in part III.D. of this 

Explanation of Provisions. 

2. Transition Rule For Non-Traceable 

Battery Materials 

Proposed § 1.30D–6(b)(2) would 

provide that for any new clean vehicles 

for which the qualified manufacturer 

provides a periodic written report before 

January 1, 2027, the due diligence 

requirement may be satisfied by 

excluding identified non-traceable 

battery materials (and associated 

constituent materials), as defined in 

proposed § 1.30D–6(a)(13)(ii). In 

addition, as described in part III.C.3. of 

this Explanation of Provisions, 

identified non-traceable battery 

materials (and associated constituent 

materials) may be excluded from the 

determination of whether a battery cell 

is FEOC-compliant. To use this 

transition rule, qualified manufacturers 

must submit a report during the up-front 

review process described in part III.D. of 

this Explanation of Provisions 

demonstrating how the qualified 

manufacturer will comply with the 

excluded entity restrictions once the 

transition rule is no longer in effect and 

all materials must be fully traced 

through the entire electric vehicle 

battery supply chain. 

As described in part III.A.13. of this 

Explanation of Provisions, the Treasury 

Department and the IRS understand, 

after extensive consultation with the 

Department of Energy, that industry has 

not developed standards or systems for 

tracing certain low-value materials with 

precision. This inability to trace is 

exacerbated by the practice of 

commingling such materials within the 

materials processing supply chain. To 

address this issue, some stakeholders 

have suggested that the Treasury 

Department and the IRS adopt a de 

minimis exception to the excluded 

entity restrictions based on value, 

weight, mass, or other considerations. 

The Treasury Department and the IRS 

understand the tracing concerns in light 

of current standards and systems. 

However, these standards and systems 

may develop to allow for improved 

tracing in the future. 

The Treasury Department and the IRS 

therefore recognize the potential need 

for a transition rule to enable 

determination of FEOC compliance 

while detailed tracing practices are 

being developed to allow for full 

sourcing and tracing of applicable 

critical mineral supply chains. The 

transition rule in proposed § 1.30D– 

6(b)(2) and (c)(3)(iii) is one option that 

the Treasury Department and the IRS 

are considering for such a rule. The 

Treasury Department and the IRS also 

are considering and seeking comment 

on possible alternative approaches for a 


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transition rule that would address lowvalue materials that cannot be traced 

under current industry standards and 

that would be responsive to rapidly 

changing industry practices regarding 

specific materials or overall battery 

composition, or no transition rule at all. 

This transition rule in proposed 

§ 1.30D–6(b)(2) is proposed to phase out 

for any new clean vehicles for which the 

manufacturer is required to provide a 

periodic written report after December 

31, 2026. The Treasury Department and 

the IRS request comments on the need 

for and design of this transition rule, 

including data or other objective 

information to support such comments. 

The Treasury Department and IRS 

also request comment on whether the 

challenges identified in this Explanation 

of Provisions related to traceability of 

low-value materials should instead be 

addressed through an alternative 

approach. The Treasury Department and 

the IRS request comment on whether a 

transition rule that adopts an alternative 

to the approach of listing materials 

would better achieve the Treasury 

Department’s and IRS’s stated goals and 

the challenges posed by low-value 

materials that are not currently feasible 

to trace. The Treasury Department and 

the IRS specifically request comment 

describing alternative approaches to 

providing a transition rule that accounts 

for low-value materials that cannot be 

traced under current industry standards 

and that is responsive to rapidly 

changing industry practice, if 

commenters believe a different 

approach could better achieve the 

Treasury Department’s and IRS’s stated 

goals. Such alternative approaches, 

which might include ones that use 

principle-based criteria instead of the 

listing of specific non-traceable battery 

materials in a final regulation, should be 

narrowly tailored to address the 

traceability challenges identified, enable 

effective administration by the IRS, and 

phase-out on a schedule consistent with 

the reasonable development of industry 

standards. 

C. Excluded Entity Restriction 

1. In General 

Proposed § 1.30D–6(c)(1) would 

provide that in the case of any new 

clean vehicle placed in service after 

December 31, 2023, the batteries from 

which the electric motor of such vehicle 

draws electricity must be FEOCcompliant. A serial number or other 

identification system must be used to 

physically track FEOC-compliant 

batteries to specific new clean vehicles. 

The proposed regulation would 

provide that the determination that a 

battery is FEOC-compliant is made as 

follows: First, the qualified 

manufacturer makes a determination of 

whether battery components and 

applicable critical minerals (and 

associated constituent materials) are 

FEOC-compliant, in accordance with 

rules for the determination of FEOCcompliant battery components and 

applicable critical minerals, which are 

described in part III.C.4. of this 

Explanation of Provisions. Next, the 

FEOC-compliant battery components 

and FEOC-compliant applicable critical 

minerals (and associated constituent 

materials) are physically tracked to 

specific battery cells, in accordance 

with rules for the determination of 

FEOC compliant-battery cells, described 

in part III.C.3. of this Explanation of 

Provisions. Alternatively, FEOCcompliant applicable critical minerals 

and associated constituent materials 

(but not battery components) may be 

allocated to battery cells, without 

physical tracking, in accordance the 

rules for a temporary allocation-based 

determination for applicable critical 

minerals and associated constituent 

materials, described in part III.C.3.a of 

this Explanation of Provisions. Finally, 

the battery components, including 

battery cells, are physically tracked to 

specific batteries, in accordance with 

the rules for the determination of FEOCcompliant batteries described in part 

II.C.2 of this Explanation of Provisions. 

2. Determination of FEOC-Compliant 

Batteries 

Proposed § 1.30D–6(c)(2) would 

provide that the determination that a 

battery is FEOC-compliant must be 

made by physically tracking FEOCcompliant battery components, 

including battery cells, to such battery. 

With respect to battery cells, a serial 

number or other identification system 

must be used to physically track FEOCcompliant battery cells to such batteries. 

3. Determination of FEOC-Compliant 

Battery Cell 

Proposed § 1.30D–6(c)(3)(i) would 

provide that, except as described in part 

III.C.3.a. of this Explanation of 

Provisions, the determination that a 

battery cell contains FEOC-compliant 

battery components and FEOCcompliant applicable critical minerals 

and their associated constituent 

materials must be made by physically 

tracking FEOC-compliant battery 

components to specific battery cells and 

by physically tracking the mass of 

FEOC-compliant applicable critical 

minerals and associated constituent 

materials to specific battery cells. 

a. Temporary Allocation-Based 

Determination for Applicable Critical 

Materials and Associated Constituent 

Materials of a Battery Cell 

Proposed § 1.30D–6(c)(3)(ii)(A) would 

provide that the determination that a 

battery cell is a FEOC-compliant battery 

cell may be made through an allocation 

of available mass of applicable critical 

minerals and associated constituent 

materials to specific battery cells 

manufactured or assembled in a battery 

cell production facility, without the 

physical tracking of the mass of 

applicable critical minerals (and 

associated constituent materials) to 

specific battery cells. This allocationbased determination is an exception to 

the general rule, requiring specific 

tracking, of proposed § 1.30D– 

6(c)(3)(ii)(A). As provided in proposed 

§ 1.30D–6(c)(3)(ii)(F), the Treasury 

Department and the IRS propose that 

this exception would be a temporary 

rule for any new clean vehicle for which 

the qualified manufacturer provides a 

periodic written report before January 1, 

2027. 

After extensive consultation with the 

DOE, the Treasury Department and the 

IRS understand that certain applicable 

critical minerals (and associated 

constituent materials) are commingled 

prior to delivery to or at the battery cell 

production facility. Thus, while the 

qualified manufacturer and its suppliers 

can trace such minerals through the 

entire electric vehicle battery supply 

chain to determine FEOC-compliance, 

the manufacturer and suppliers cannot 

physically track specific mass of 

minerals to specific battery cells or 

batteries. As a result, the qualified 

manufacturer cannot determine which 

battery cells or batteries are FEOCcompliant, absent an allocation-based 

determination. 

The Treasury Department and the IRS 

anticipate that industry accounting 

practices may adapt to compliance 

regimes that require physical supply 

chain tracking in the future, whether 

through the acquisition of whollycompliant supply, the separation of 

currently-commingled supply chains, 

the development of physical tracking 

systems, or some combination thereof. 

Accordingly, this exception is proposed 

to phase out for any new clean vehicle 

for which the qualified manufacturer 

provides a periodic written report after 

December 31, 2026. The Treasury 

Department and the IRS request 

comments on the need for, design, and 

duration of this temporary rule, 

including data or other objective 

information to support such comments. 

The Treasury Department and the IRS 


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also request comment on whether 

industry practices are likely to develop 

that allow for physical tracking before 

December 31, 2032, and, if not, whether 

allocation-based accounting should be 

included as a permanent compliance 

approach, rather than as a temporary 

transition rule. 

Proposed § 1.30D–6(c)(3)(ii)(B) would 

provide that the temporary allocationbased determination rules are limited to 

applicable critical minerals and 

associated constituent materials that are 

incorporated into a battery cell or its 

battery components. Battery 

components must be physically tracked. 

Proposed § 1.30D–6(c)(3)(ii)(C) would 

provide that any allocation with respect 

to the mass of an applicable critical 

mineral must be made within the type 

of constituent materials (such as 

powders of cathode active materials, 

powders of anode active materials, or 

foils) in which such mineral is 

contained. Masses of an applicable 

critical mineral may not be aggregated 

across constituent materials with which 

such applicable critical mineral is not 

associated, and an allocation of mass of 

an applicable critical mineral may not 

be made from one type of constituent 

material to another. Proposed § 1.30D– 

6(c)(3)(ii)(C) also provides an example 

illustrating this rule. 

Proposed § 1.30D–6(c)(3)(ii)(D) would 

provide that any allocation with respect 

to applicable critical minerals and their 

associated constituent materials must be 

allocated within one or more specific 

battery cell product lines of the battery 

cell production facility, such that a 

particular mass of constituent material 

is not treated as fungible across different 

battery chemistries and designs. 

Proposed § 1.30D–6(c)(3)(ii)(E) would 

provide that if a qualified manufacturer 

uses the allocation-based determination 

rules described in this part III.C.3.a., the 

quantity of FEOC-compliant battery 

cells that can result from this allocation 

may not exceed the number of battery 

cells for which there is enough FEOCcompliant quantity of every applicable 

critical mineral. That number will 

necessarily be limited by the applicable 

critical mineral that has the lowest 

percentage of FEOC-compliant supply. 

For example, if a qualified manufacturer 

allocates all of applicable critical 

mineral A, that is 20 percent FEOCcompliant, and all of applicable critical 

mineral B, that is 60 percent FEOCcompliant, to a battery cell product line, 

no more than 20 percent of the battery 

cells in that battery cell product line 

may be FEOC-compliant. 

Proposed § 1.30D–6(c)(3)(ii)(F) would 

provide that the rules of proposed 

§ 1.30D–6(c)(3)(ii) do not apply with 

respect to any new clean vehicle for 

which the qualified manufacturer 

provides a periodic written report after 

December 31, 2026. 

b. Transition Rule for Non-Traceable 

Battery Materials 

Proposed § 1.30D–6(c)(3)(iii) would 

provide that for new clean vehicles for 

which the qualified manufacturer 

provides a periodic written report before 

January 1, 2027, the determination of 

whether a battery cell is FEOCcompliant under proposed § 1.30D– 

6(c)(3) may be satisfied by excluding 

non-traceable battery materials, and 

their associated constituent materials. 

To use this transition rule, which is 

further discussed in part III.B. of this 

Explanation of Provisions, qualified 

manufacturers must submit a report 

during the up-front review process 

described in proposed § 1.30D– 

6(d)(2)(ii). 

4. Determination of FEOC-Compliant 

Battery Components and Applicable 

Critical Minerals 

Proposed § 1.30D–6(c)(4) would 

provide that the determination that 

battery components and applicable 

critical minerals (and their associated 

constituent materials) are FEOCcompliant must be made prior to any 

determination under proposed § 1.30D– 

6(c)(2) and (3). In general, the 

determination of whether an applicable 

critical mineral is FEOC-compliant 

would take into account each step of 

extraction, processing, or recycling 

through the step in which such mineral 

is processed or recycled into a 

constituent material, even if the mineral 

is not in a form listed in section 

45X(c)(6)), such as nickel sulphate that 

is used in production of a nickelmanganese-cobalt cathode active 

powder. A constituent material would 

be associated with an applicable critical 

mineral if the applicable critical mineral 

has been processed or recycled into a 

constituent material, even if that 

processing or recycling transformed the 

mineral into a form not listed in section 

45X(c)(6). However, an applicable 

critical mineral would be disregarded 

for purposes of the determination under 

proposed § 1.30D–6(c)(4) if it is fully 

consumed in the production of the 

constituent material or battery 

component and no longer remains in 

any form in the battery, such as certain 

solvents used in electrode production. 

With respect to recycling, applicable 

critical minerals and associated 

constituent materials that are recycled 

would be subject to the determination of 

whether such mineral is FEOCcompliant if the recyclable material 

contains an applicable critical mineral, 

contains material that was transformed 

from an applicable critical mineral, or if 

the recyclable material is used to 

produce an applicable critical mineral at 

any point during the recycling process. 

The determination of whether an 

applicable critical mineral or associated 

constituent material that is incorporated 

into a battery via recycling is FEOCcompliant takes into account only 

activities that occurred during the 

recycling process. Thus, for example, an 

applicable critical mineral derived from 

recyclable material that was recycled by 

an entity that is not a FEOC would be 

FEOC-compliant even if such mineral 

may have been extracted by a FEOC 

prior to its inclusion in the recyclable 

material. 

Whether an entity is a FEOC is 

determined as of the time of the entity’s 

performance of the relevant activity, 

which for applicable critical minerals is 

the time of extraction, processing, or 

recycling, and for battery components is 

the time of manufacturing or assembly. 

The determination of whether an 

applicable critical mineral is FEOCcompliant is determined at the end of 

processing or recycling of the applicable 

critical mineral into a constituent 

material, taking into account all 

applicable steps prior to final processing 

or recycling. Thus, for example, an 

applicable critical mineral that is not 

extracted by a FEOC but is processed by 

a FEOC is not FEOC-compliant. 

Proposed § 1.30D–6(c)(4)(iv) provides 

examples regarding determinations of 

FEOC-compliant battery components 

and applicable critical minerals. 

5. Third-Party Manufacturers or 

Suppliers 

Proposed § 1.30D–6(c)(5) would 

provide that the determinations under 

proposed § 1.30D–6(c)(2) through (4) 

may be made by a third-party 

manufacturer or supplier that operates a 

battery cell production facility provided 

that the manufacturer or supplier 

performs the due diligence described in 

proposed § 1.30D–6 and provides the 

qualified manufacturer of the new clean 

vehicle information sufficient to 

establish a basis for the determinations 

under proposed § 1.30D–6(c)(2) through 

(4). In addition, the manufacturer or 

supplier must be contractually required 

to provide such information to the 

qualified manufacturer of the new clean 

vehicle and must be contractually 

required to inform the qualified 

manufacturer of any changes in the 

supply chain that affect determinations 

of FEOC compliance. In the case of 

multiple third-party manufacturers or 

suppliers (such as if a manufacturer 


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contracts with a battery manufacturer, 

who, in turn, contracts with a 

manufacturer or supplier who operates 

a battery cell production facility), the 

due diligence and information 

requirements must be satisfied by each 

such manufacturer or supplier either 

directly to the qualified manufacturer or 

indirectly through contractual 

relationships. 

D. Compliant-Battery Ledger 

1. In General 

Proposed § 1.30D–6(d)(1) would 

provide that for new clean vehicles 

placed in service after December 31, 

2024, the qualified manufacturer must 

determine and provide information to 

the IRS to establish a compliant-battery 

ledger for each calendar year, as 

described in proposed § 1.30D–6(d)(2)(i) 

and (ii). One compliant-battery ledger 

may be established for all vehicles for a 

calendar year, or there may be separate 

ledgers for specific models or classes of 

vehicles. 

2. Determination of Number of Batteries 

Proposed § 1.30D–6(d)(2)(i) would 

provide that, to establish a compliantbattery ledger for a calendar year, the 

qualified manufacturer must determine 

the number of batteries, with respect to 

new clean vehicles (as described in 

section 30D(d) and proposed § 1.30D– 

2(m)) for which the qualified 

manufacturer anticipates providing a 

periodic written report during the 

calendar year, that it knows or 

reasonably anticipates will be FEOCcompliant, pursuant to the requirements 

of proposed § 1.30D–6(b) and (c). The 

determination would be based on the 

battery components and applicable 

critical minerals (and associated 

constituent materials) that are procured 

or contracted for the calendar year and 

that are known or reasonably 

anticipated to be FEOC-compliant 

battery components or FEOC-compliant 

applicable critical minerals, as 

applicable. 

Proposed § 1.30D–6(d)(2)(ii) would 

provide a process for upfront review of 

the number of batteries described in the 

preceding paragraph. Specifically, the 

proposed rule would provide that the 

qualified manufacturer must attest to 

the number of FEOC-compliant batteries 

determined under proposed § 1.30D– 

6(d)(2)(i) and provide the basis for the 

determination, including attestations, 

certifications and documentation 

demonstrating compliance with 

proposed § 1.30D–6(b) and (c), at the 

time and in the manner provided in the 

Internal Revenue Bulletin. The IRS, 

with analytical assistance from the DOE, 

would review the attestations, 

certifications, and documentation. Once 

the IRS has determined that the 

qualified manufacturer has provided the 

required attestations, certifications, and 

documentation, the IRS will approve or 

reject the determined number of FEOCcompliant batteries. The IRS may 

approve the determined number in 

whole or part. The approved number 

will be the initial balance in the 

compliant-battery ledger. 

Proposed § 1.30D–6(d)(2)(iii) would 

provide rules for decreasing or 

increasing the balance of the compliantbattery ledger. Specifically, once the 

compliant-battery ledger is established 

with respect to a calendar year, the 

qualified manufacturer must determine 

and take into account any decrease in 

the number of FEOC-compliant batteries 

for such calendar year, and any of the 

prior three calendar years for which the 

qualified manufacturer had a compliantbattery ledger, within 30 days of 

discovery. In addition, the qualified 

manufacturer may determine and take 

into account any increase in the number 

of FEOC-compliant batteries. Such 

determinations, and any supporting 

attestations, certifications, and 

documentation, must be provided on a 

periodic basis in the manner provided 

in the Internal Revenue Bulletin. 

The decrease described in the 

previous paragraph may decrease the 

compliant-battery ledger below zero, 

creating a negative balance in the 

compliant-battery ledger. In addition, if 

any such decrease is determined 

subsequent to the calendar year to 

which it relates, the decrease will be 

taken into account in the year in which 

the change is discovered. The remaining 

balance in the compliant-battery ledger 

at the end of the calendar year, whether 

positive or negative, will be included in 

the compliant-battery ledger for the 

subsequent calendar year. If a qualified 

manufacturer has multiple compliantbattery ledgers with negative balances, 

any negative balance would first be 

included in the compliant-battery ledger 

for the same model or class of vehicles 

for the subsequent calendar year. 

However, if there is no ledger for the 

same model or class of vehicles in the 

subsequent calendar year, the IRS can 

account for such negative balance in the 

ledger of a different model or class of 

vehicles of the qualified manufacturer. 

3. Tracking FEOC-Compliant Batteries 

Proposed § 1.30D–6(d)(3) would 

provide that the compliant-battery 

ledger for a calendar year must be 

updated to track the number of available 

FEOC-compliant batteries of the 

qualified manufacturer, by reducing the 

balance of the ledger as the qualified 

manufacturer submits periodic written 

reports reporting the VINs of new clean 

vehicles as eligible for the credit under 

section 30D, at the time and in the 

manner provided in the Internal 

Revenue Bulletin. If the balance of the 

compliant-battery ledger for a calendar 

year of the qualified manufacturer is 

zero or less than zero, the qualified 

manufacturer would not be able to 

submit additional periodic written 

reports with respect to section 30D. 

4. Reconciliation of Battery Estimates 

Proposed § 1.30D–6(d)(4) would 

provide that, after the end of any 

calendar year for which a compliantbattery ledger is established, the IRS 

may require a qualified manufacturer to 

provide attestations, certifications, and 

documentation to support the accuracy 

of the number of FEOC-compliant 

batteries of the qualified manufacturer 

for such calendar year, including with 

respect to any changes described in 

paragraph (d)(3)(iii), at the time and in 

the manner provided in the Internal 

Revenue Bulletin. 

E. Rule for 2024 

Proposed § 1.30D–6(e) would provide 

rules for new clean vehicles placed in 

service in 2024. This rule may apply to 

new clean vehicles for which the 

qualified manufacturer submits a 

periodic written report in 2024 as well 

as new clean vehicles for which a 

qualified manufacturer submitted a 

periodic written report in 2023. Thus, 

for example, a vehicle that was 

anticipated to be placed in service in 

2023 that remains unsold at the end of 

2023 is subject to these rules if placed 

in service in 2024. 

Specifically, proposed § 1.30D–6(e)(1) 

would provide that, for new clean 

vehicles that are placed in service after 

December 31, 2023, and prior to January 

1, 2025, the qualified manufacturer 

must determine whether the battery 

components contained in such vehicles 

satisfy the requirements of section 

30D(d)(7)(B) and whether batteries 

contained in the vehicle are FEOCcompliant under the rules of proposed 

§ 1.30D–6(b) and (c). The qualified 

manufacturer would be required to 

make an attestation with respect to such 

determinations at the time and in the 

manner provided in the Internal 

Revenue Bulletin. 

However, for any new clean vehicles 

for which the qualified manufacturer 

provides a periodic written report before 

the date that is 30 days after the date 

these regulations are finalized, provided 

that the qualified manufacturer has 

determined that its supply chain of 


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battery components with respect to such 

vehicles contains only FEOC-compliant 

battery components: (i) for purposes of 

the determination of FEOC-compliant 

batteries and FEOC-compliant battery 

cells described in parts III.C.2 and 

III.C.3. of this Explanation of Provisions, 

the determination of which battery cells 

or batteries, as applicable, contain 

FEOC-compliant battery components 

may be determined without physical 

tracking; (ii) for purposes of the 

determination of FEOC-compliant 

batteries, the determination of which 

batteries contain FEOC-compliant 

battery cells may be determined without 

physical tracking (and without the use 

of a serial number or other identification 

system); and (iii) for purposes of the 

determination that a vehicle contains a 

FEOC-compliant battery and therefore is 

a new clean vehicle, as described in part 

III.C.1. of this Explanation of Provisions, 

the determination of which vehicles 

contain FEOC-compliant batteries may 

be determined without physical tracking 

(and without the use of a serial number 

or other identification system). 

Under proposed § 1.30D–6(e)(2), the 

determination that a qualified 

manufacturer’s supply chain of battery 

components contains only FEOCcompliant batteries may be made with 

respect to specific models or classes of 

vehicles. 

F. Inaccurate Attestations, Certifications 

or Documentation 

1. In General 

Proposed § 1.30D–6(f)(1) would 

provide that if the IRS determines, with 

analytical assistance from the DOE and 

after review of the attestations, 

certifications, and documentation 

described in part III.D. of this 

Explanation of Provisions, that a 

qualified manufacturer provided 

inaccurate attestations, certifications, or 

documentation, the IRS may take certain 

actions against the qualified 

manufacturer, depending on the severity 

of the inaccuracy. Such actions would 

affect new clean vehicles and qualified 

manufacturers on a prospective basis. 

2. Inadvertence 

Proposed § 1.30D–6(f)(2) would 

provide that if the IRS determines that 

the attestations, certifications, or 

documentation for a new clean vehicle 

contain errors due to inadvertence, the 

following may be required: The 

qualified manufacturer may cure the 

errors identified, including by a 

decrease in the compliant-battery ledger 

of the qualified manufacturer. However, 

if the errors are not cured, in the case 

of a new clean vehicle that has not been 

placed in service but for which the 

qualified manufacturer has submitted a 

periodic written report certifying 

compliance with the requirements of 

section 30D(d), such vehicle is no longer 

considered a new clean vehicle eligible 

for the section 30D credit. If the errors 

are not cured, in the case of a new clean 

vehicle that has not been placed in 

service and for which the qualified 

manufacturer has not submitted a 

periodic written report, the qualified 

manufacturer may not submit a periodic 

written report certifying compliance 

with the requirements of section 30D(d). 

Finally, if the errors are not cured, in 

the case of a new clean vehicle that has 

been placed in service, the IRS may 

require a decrease to the compliantbattery ledger. 

3. Intentional Disregard or Fraud 

Proposed § 1.30D–6(f)(3) would 

provide guidance for cases of 

intentional disregard or fraud. 

Specifically, the proposed regulations 

would provide that if the IRS 

determines that a qualified 

manufacturer intentionally disregarded 

attestation, certification, and 

documentation requirements or reported 

information fraudulently or with 

intentional disregard, the IRS may 

determine that all vehicles of the 

qualified manufacturer that have not 

been placed in service are no longer 

considered new clean vehicles eligible 

for the section 30D credit. In addition, 

the IRS may terminate the written 

agreement between the IRS and the 

manufacturer, thereby terminating the 

manufacturer’s status as a qualified 

manufacturer. The manufacturer would 

be required to submit a new written 

agreement to reestablish qualified 

manufacturer status at the time and in 

the manner provided in the Internal 

Revenue Bulletin. 

G. Examples 

Proposed § 1.30D–6(g) would provide 

examples illustrating the application of 

the proposed rules regarding excluded 

entities. Example 1 would provide a 

general set of facts and analysis. 

Example 2 would provide an example 

illustrating the rules for third-party 

suppliers. Example 3 would provide an 

example illustrating the general rules for 

applicable critical minerals. Example 4 

would provide a comprehensive 

example with specified battery 

components and applicable critical 

minerals (and associated constituent 

materials). 

VI. Severability 

Proposed § 1.30D–6(h) would provide 

that if any provision in this proposed 

rulemaking is held to be invalid or 

unenforceable facially, or as applied to 

any person or circumstance, it shall be 

severable from the remainder of this 

rulemaking, and shall not affect the 

remainder thereof, or the application of 

the provision to other persons not 

similarly situated or to other dissimilar 

circumstances. 

Proposed Applicability Dates 

Consistent with the April 2023 

proposed regulations, previously 

proposed § 1.30D–2(a) through (h) are 

proposed to apply to new clean vehicles 

placed in service on or after January 1, 

2023, for taxable years ending after 

April 17, 2023. Newly proposed 

§ 1.30D–2(j) through (m) are proposed to 

apply to new clean vehicles placed in 

service on or after January 1, 2024, for 

taxable years ending after December 31, 

2023. 

Consistent with the April 2023 

proposed regulations, previously 

proposed § 1.30D–3(a) through (c) and 

(f) are proposed to apply to new clean 

vehicles placed in service after April 17, 

2023, for taxable years ending after 

April 17, 2023. Newly proposed 

§ 1.30D–3(d) and (e) are proposed to 

apply to new clean vehicles placed in 

service on or after January 1, 2024, for 

taxable years ending after December 31, 

2023. 

Section 30D(d)(7) provides that the 

excluded entity provisions apply to 

vehicles placed in service after 

December 31, 2023, for battery 

components, and after December 31, 

2024, for applicable critical minerals. 

Accordingly proposed § 1.30D–6 is 

proposed to apply to new clean vehicles 

placed in service after December 31, 

2023. 

Taxpayers may rely on these proposed 

regulations for vehicles placed in 

service prior to the date final regulations 

are published in the Federal Register, 

provided the taxpayer follows the 

proposed regulations in their entirety, 

and in a consistent manner. 

Effect on Other Documents 

This notice of proposed rulemaking 

modifies proposed §§ 1.30D–2 and 

1.30D–3 of the April 2023 proposed 

regulations. 

Special Analyses 

I. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3520) (PRA) generally 

requires that a Federal agency obtain the 

approval of the Office of Management 

and Budget (OMB) before collecting 

information from the public, whether 

such collection of information is 


ddrumheller on DSK120RN23PROD with PROPOSALS1
84108 Federal Register / Vol. 88, No. 231 / Monday, December 4, 2023 / Proposed Rules 

mandatory, voluntary, or required to 

obtain or retain a benefit. 

For purposes of the PRA, the 

reporting burden associated with the 

collection of information in proposed 

§ 1.30D–6 regarding excluded entities 

will be reflected in the PRA 

Submissions associated with OMB 

control number 1545–2311. OMB 

Control Number 1545–2137 covers Form 

8936 and Form 8936–A regarding clean 

vehicle credits, including the new 

requirement in section 30D(f)(9) to 

include on the taxpayer’s return for the 

taxable year the VIN of the vehicle for 

which the section 30D credit is claimed. 

Revenue Procedure 2022–42 describes 

the procedural requirements for 

qualified manufacturers to make 

periodic written reports to the IRS to 

provide information related to each 

vehicle manufactured by such 

manufacturer that is eligible for the 

section 30D credit as required in section 

30D(d)(3), including the critical mineral 

and battery component attestation or 

certification requirements in section 

30D(e)(1)(A) and (2)(A). In addition, 

Revenue Procedure 2022–42 also 

provides the procedures for sellers of 

new clean vehicles to report information 

required by section 30D(d)(1)(H) for 

vehicles to be eligible for the section 

30D credit. The collections of 

information contained in Revenue 

Procedure 2022–42 are described in that 

document and were submitted to the 

Office of Management and Budget in 

accordance with the PRA under control 

number 1545–2137. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a valid control 

number assigned by the Office of 

Management and Budget. 

II. Regulatory Flexibility Act 

Pursuant to the Regulatory Flexibility 

Act (5 U.S.C. chapter 6), the Secretary 

hereby certifies that these proposed 

regulations will not have a significant 

economic impact on a substantial 

number of small entities within the 

meaning of section 601(6) of the 

Regulatory Flexibility Act. Pursuant to 

section 7805(f), this notice of proposed 

rulemaking has been submitted to the 

Chief Counsel for the Office of 

Advocacy of the Small Business 

Administration for comment on their 

impact on small business. 

The proposed regulations affect 

qualified manufacturers that must 

determine their compliance with the 

excluded entity requirements in order to 

certify that their new clean vehicles 

placed in service after December 31, 

2023, qualify for the section 30D credit. 

While the tracking and reporting of 

compliance with the excluded entity 

requirements is likely to involve 

significant administrative costs, 

according to public filings, every 

qualified manufacturer had total 

revenues above $1 billion in 2022. 

There are a total of 11 qualified 

manufacturers that have indicated that 

they manufacture vehicles currently 

eligible for the section 30D credit. 

Pursuant to Revenue Procedure 2022– 

42, Revenue Procedure 2023–33, and 

following the publication of these 

proposed regulations, qualified 

manufacturers will also have to certify 

that their vehicles comply with the 

excluded entity requirement and 

contain batteries that are FEOCcompliant. The proposed regulations 

provide definitions and general rules for 

this purposes. Accordingly, the 

Treasury Department and the IRS intend 

that the proposed rules provide clarity 

for qualified manufacturers for 

consistent application of the excluded 

entity requirements. The Treasury 

Department and the IRS have 

determined that qualified manufacturers 

do not meet the applicable definition of 

small entity. Accordingly, the Secretary 

certifies that these proposed regulations 

will not have a significant economic 

impact on a substantial number of small 

entities. The Treasury Department and 

the IRS request comments that provide 

data, other evidence, or models that 

provide insight on this issue. 

III. Unfunded Mandates Reform Act 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 (UMRA) 

requires that agencies assess anticipated 

costs and benefits and take certain other 

actions before issuing a final rule that 

includes any Federal mandate that may 

result in expenditures in any one year 

by a State, local, or Tribal government, 

in the aggregate, or by the private sector, 

of $100 million (updated annually for 

inflation). This proposed rule does not 

include any Federal mandate that may 

result in expenditures by State, local, or 

Tribal governments, or by the private 

sector in excess of that threshold. 

IV. Executive Order 13132: Federalism 

Executive Order 13132 (Federalism) 

prohibits an agency from publishing any 

rule that has federalism implications if 

the rule either imposes substantial, 

direct compliance costs on State and 

local governments, and is not required 

by statute, or preempts State law, unless 

the agency meets the consultation and 

funding requirements of section 6 of the 

Executive order. This proposed rule 

does not have federalism implications 

and does not impose substantial direct 

compliance costs on State and local 

governments or preempt State law 

within the meaning of the Executive 

order. 

V. Regulatory Planning and Review 

Pursuant to the Memorandum of 

Agreement, Review of Treasury 

Regulations under Executive Order 

12866 (June 9, 2023), tax regulatory 

actions issued by the IRS are not subject 

to the requirements of section 6 of 

Executive Order 12866, as amended. 

Therefore, a regulatory impact 

assessment is not required. 

Comments and Requests for a Public 

Hearing 

Before these proposed amendments to 

the regulations are adopted as final 

regulations, consideration will be given 

to comments that are submitted timely 

to the IRS as prescribed in this preamble 

under the ADDRESSES section. The 

Treasury Department and the IRS 

request comments on all aspects of the 

proposed regulations. Any comments 

submitted will be made available at 

https://www.regulations.gov or upon 

request. 

A public hearing will be scheduled if 

requested in writing by any person who 

timely submits electronic or written 

comments. Requests for a public hearing 

are also encouraged to be made 

electronically. If a public hearing is 

scheduled, notice of the date and time 

for the public hearing will be published 

in the Federal Register. 

Announcement 2023–16, 2023–20 

I.R.B. 854 (May 15, 2023), provides that 

public hearings will be conducted in 

person, although the IRS will continue 

to provide a telephonic option for 

individuals who wish to attend or 

testify at a hearing by telephone. Any 

telephonic hearing will be made 

accessible to people with disabilities. 

Statement of Availability of IRS 

Documents 

Guidance cited in this preamble is 

published in the Internal Revenue 

Bulletin and is available from the 

Superintendent of Documents, U.S. 

Government Publishing Office, 

Washington, DC 20402, or by visiting 

the IRS website at https://www.irs.gov. 

Drafting Information 

The principal author of these 

proposed regulations is the Office of the 

Associate Chief Counsel (Passthroughs 

and Special Industries). However, other 

personnel from the Treasury 

Department, the DOE, and the IRS 

participated in their development. 


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List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Proposed Amendments to the 

Regulations 

Accordingly, the Treasury Department 

and the IRS propose to amend 26 CFR 

parts 1 as follows: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 is amended by adding an entry 

in numerical order for § 1.30D–6 to read 

in part as follows: 

Authority: 26 U.S.C. 7805 * * * 

Section 1.30D–6 also issued under 26 

U.S.C. 30D. 

* * * * * 

■ Par. 2. Section 1.30D–0, as proposed 

to be added at 88 FR 23370 (April 17, 

2023) and proposed to be amended at 88 

FR 70310 (October 10, 2023), is 

amended by: 

■ a. Adding paragraphs (k), (l), and (m) 

under § 1.30D–2; 

■ b. Revising paragraphs (e) and (f) 

under § 1.30D–3; 

■ c. Adding paragraph (g) under 

§ 1.30D–3; and 

■ d. Adding an entry in numerical order 

for § 1.30D–6. 

The additions and revisions read as 

follows: 

§ 1.30D–0 Table of contents. 

* * * * * 

§ 1.30D–2 Definitions for purposes of 

section 30D. 

* * * * * 

(k) Manufacturer. 

(l) Qualified manufacturer. 

(m) New clean vehicle. 

* * * * * 

§ 1.30D–3 Critical mineral and battery 

component requirements. 

* * * * * 

(e) Upfront review of battery component 

and applicable critical minerals 

requirements. 

(f) Severability. 

(g) Applicability date. 

* * * * * 

§ 1.30D–6 Excluded entities. 

(a) Definitions. 

(1) Applicable critical mineral. 

(2) Assembly. 

(3) Battery. 

(4) Battery cell. 

(5) Battery cell production facility. 

(6) Battery component. 

(7) Compliant-battery ledger. 

(8) Constituent materials. 

(9) Extraction. 

(10) Foreign entity of concern. 

(11) FEOC-compliant. 

(12) Manufacturing. 

(13) Non-traceable battery material. 

(i) In general. 

(ii) [Reserved] 

(14) Processing. 

(15) Recycling. 

(b) Due diligence. 

(1) In general. 

(2) Transition rule for non-traceable battery 

materials. 

(c) Excluded entity restriction. 

(1) In general. 

(2) Determination of FEOC-compliant 

batteries. 

(3) Determination of FEOC-compliant 

battery cell. 

(i) In general. 

(ii) Temporary allocation-based 

determination for applicable critical 

materials contained in constituent materials 

of a battery cell. 

(A) In general. 

(B) Allocation limited to applicable critical 

minerals in the battery cell. 

(C) Separate allocation for each class of 

constituent materials. 

(D) Allocation within each product line of 

battery cells. 

(E) Limitation on number of FEOCcompliant battery cells. 

(F) Termination of temporary allocationbased determination. 

(iii) Transition rule for non-traceable 

battery materials. 

(4) Determination of FEOC-compliant 

battery components and applicable critical 

minerals. 

(i) In general. 

(ii) Applicable critical minerals. 

(A) In general. 

(B) Associated constituent materials. 

(C) Exception for applicable critical 

minerals not contained in the battery. 

(D) Recycling. 

(iii) Timing of determination of FEOCcompliant status. 

(iv) Examples. 

(A) Example 1: Timing of FEOC 

compliance determination. 

(B) Example 2: Form of applicable critical 

mineral. 

(C) Example 3: Recycling of applicable 

critical mineral. 

(5) Third-party manufacturers or suppliers. 

(d) Compliant-battery ledger. 

(1) In general. 

(2) Determination of number of batteries. 

(i) In general. 

(ii) Upfront review. 

(iii) Decrease or increase to compliantbattery ledger. 

(3) Tracking FEOC-compliant batteries. 

(4) Reconciliation of battery estimates. 

(e) Rule for 2024. 

(1) In general. 

(2) Determination. 

(f) Inaccurate attestations, certifications, or 

documentation. 

(1) In general. 

(2) Inadvertence. 

(3) Intentional disregard of fraud. 

(g) Examples. 

(1) Example 1: In general. 

(2) Example 2: Rules for third-party 

suppliers. 

(3) Example 3: Applicable critical minerals. 

(4) Example 4: Comprehensive example. 

(h) Severability. 

(i) Applicability date. 

■ Par. 3. Section 1.30D–2, as proposed 

to be added at 88 FR 23370 (April 17, 

2023) and proposed to be amended at 88 

FR 70310 (October 10, 2023), is 

amended by revising paragraphs (a), (f), 

and (i) and adding paragraphs (k), (l), 

and (m) to read as follows: 

§ 1.30D–2 Definitions for purposes of 

section 30D. 

(a) In general. The definitions in this 

section apply for purposes of section 

30D of the Internal Revenue Code 

(Code) and the section 30D regulations. 

* * * * * 

(f) Section 30D regulations. Section 

30D regulations means § 1.30D–1, this 

section, and §§ 1.30D–3 through 1.30D– 

6. 

* * * * * 

(i) Applicability date. Paragraphs (a) 

through (h) of this section apply to new 

clean vehicles placed in service on or 

after January 1, 2023, for taxable years 

ending after April 17, 2023. Paragraphs 

(j) through (m) of this section apply for 

new clean vehicles placed in service on 

or after January 1, 2024, for taxable 

years ending after December 31, 2023. 

* * * * * 

(k) Manufacturer. A manufacturer 

means any manufacturer within the 

meaning of the regulations prescribed 

by the Administrator of the 

Environmental Protection Agency (EPA) 

for purposes of the administration of 

title II of the Clean Air Act (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 provided in section 

30D(d)(3) must be met by the 

manufacturer who satisfies the reporting 

requirements of the greenhouse gas 

emissions standards set by the EPA 

under the Clean Air Act (42 U.S.C. 7521 

et seq.) for the subject vehicle. 

(l) Qualified manufacturer. A 

qualified manufacturer means a 

manufacturer that meets the 

requirements described in section 

30D(d)(3). The term qualified 

manufacturer does not include any 

manufacturer whose qualified 

manufacturer status has been terminated 

by the Internal Revenue Service (IRS). 

The IRS may terminate qualified 

manufacturer status for fraud, 

intentional disregard, or gross 

negligence with respect to any 

requirements of section 30D, the section 

30D regulations, or any guidance under 

section 30D, including with respect to 

the periodic written reports described in 

section 30D(d)(3) and § 1.30D–2(m) and 

any attestations, documentation, or 

certifications described in § 1.30D–3(e) 

and § 1.30D–6(d), at the time and in the 


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manner provided in the Internal 

Revenue Bulletin (see 

§ 601.601(d)(2)(ii)(a) of this chapter). 

See § 1.30D–6(f) for additional rules 

regarding inaccurate determinations and 

documentation. 

(m) New clean vehicle. A new clean 

vehicle means a vehicle that meets the 

requirements described in section 

30D(d). A vehicle does not meet the 

requirements of section 30D(d) if— 

(1) The qualified manufacturer fails to 

provide a periodic written report for 

such vehicle prior to the vehicle being 

placed in service, reporting the vehicle 

identification number (VIN) of such 

vehicle and certifying compliance with 

the requirement of section 30D(d); 

(2) The qualified manufacturer 

provides incorrect information with 

respect to the periodic written report for 

such vehicle; 

(3) The qualified manufacturer fails to 

update its periodic written report in the 

event of a material change with respect 

to such vehicle; or 

(4) For new clean vehicles placed in 

service after December 31, 2024, the 

qualified manufacturer fails to meet the 

requirements of § 1.30D–6(d). 

■ Par. 4. Section 1.30D–3, as proposed 

to be added at 88 FR 23370 (April 17, 

2023), is amended by: 

■ a. Revising paragraph (d); 

■ b. Redesignating paragraphs (e) and (f) 

as paragraphs (f) and (g); 

■ c. Adding new paragraph (e); and 

■ d. Revising newly redesignated 

paragraph (g). 

The revisions and addition read as 

follows: 

§ 1.30D–3 Critical mineral and battery 

component requirements. 

* * * * * 

(d) Excluded entities. For rules 

regarding excluded entities, see 

§ 1.30D–6. 

(e) Upfront review of battery 

component and applicable critical 

minerals requirements. For new clean 

vehicles anticipated to be placed in 

service after December 31, 2024, the 

qualified manufacturer must provide 

attestations, certifications and 

documentation demonstrating 

compliance with the requirements of 

section 30D(e), at the time and in the 

manner provided in the Internal 

Revenue Bulletin (see 

§ 601.601(d)(2)(ii)(a) of this chapter). 

The IRS, with analytical assistance from 

the Department of Energy, will review 

the attestations, certifications, and 

documentations. 

* * * * * 

(g) Applicability date. Paragraphs (a) 

through (c) and (f) of this section apply 

to new clean vehicles placed in service 

after April 17, 2023, for taxable years 

ending after April 17, 2023. Paragraphs 

(d) and (e) of this section apply to new 

clean vehicles placed in service on or 

after January 1, 2024, for taxable years 

beginning after December 31, 2023. 

■ Par. 5. Section 1.30D–6 is added to 

read as follows: 

§ 1.30D–6 Excluded entities. 

(a) Definitions. This paragraph (a) 

provides definitions that apply for 

purposes of section 30D(d)(7) of the 

Internal Revenue Code (Code) and this 

section. 

(1) Applicable critical mineral. 

Applicable critical mineral means an 

applicable critical mineral as defined in 

section 45X(c)(6) of the Code. 

(2) Assembly. Assembly, with respect 

to battery components, means the 

process of combining battery 

components into battery cells and 

battery modules. 

(3) Battery. Battery, for purposes of a 

new clean vehicle, means a collection of 

one or more battery modules, each of 

which has two or more electrically 

configured battery cells 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. 

(4) Battery cell. Battery cell, means a 

combination of battery components 

(other than battery cells) capable of 

electrochemically storing energy from 

which the electric motor of a new clean 

vehicle draws electricity. 

(5) Battery cell production facility. 

Battery cell production facility means a 

facility in which battery cells are 

manufactured or assembled. 

(6) Battery component. Battery 

component means a component that 

forms part of a battery and that is 

manufactured or assembled from one or 

more components or constituent 

materials that are combined through 

industrial, chemical, and physical 

assembly steps. Battery components 

may include, but are not limited to, a 

cathode electrode, anode electrode, 

solid metal electrode, separator, liquid 

electrolyte, solid state electrolyte, 

battery cell, and battery module. 

Constituent materials are not a type of 

battery component, although constituent 

materials may be manufactured or 

assembled into battery components. 

Some battery components may be made 

entirely of inputs that do not contain 

constituent materials. 

(7) Compliant-battery ledger. A 

compliant-battery ledger, for a qualified 

manufacturer for a calendar year, is a 

ledger established under the rules of 

paragraph (d) of this section that tracks 

the number of available FEOCcompliant batteries for such calendar 

year. 

(8) Constituent materials. Constituent 

materials means materials that contain 

applicable critical minerals and that are 

employed directly in the manufacturing 

of battery components. Constituent 

materials may include, but are not 

limited to, powders of cathode active 

materials, powders of anode active 

materials, foils, metals for solid 

electrodes, binders, electrolyte salts, and 

electrolyte additives, as required for a 

battery cell. 

(9) Extraction. Extraction means the 

activities performed to harvest minerals 

or natural resources from the ground or 

a body of water. Extraction includes, but 

is not limited to, operating equipment to 

harvest minerals or natural resources 

from mines and wells, or to extract 

minerals or natural resources from the 

waste or residue of prior extraction. 

Extraction concludes when activities are 

performed to convert raw mined or 

harvested products or raw well effluent 

to substances that can be readily 

transported or stored for direct use in 

critical mineral processing. Extraction 

includes the physical processes 

involved in refining. Extraction does not 

include the chemical and thermal 

processes involved in refining. 

(10) Foreign entity of concern. Foreign 

entity of concern (FEOC) has the 

meaning provided in section 40207(a)(5) 

of the Infrastructure Investment and 

Jobs Act (42 U.S.C. 18741(a)(5)) and 

guidance promulgated thereunder by 

the Department of Energy (DOE). 

(11) FEOC-compliant. FEOCcompliant means in compliance with 

the applicable excluded entity 

requirement under section 30D(d)(7). In 

particular— 

(i) A battery component (other than a 

battery cell), with respect to a new clean 

vehicle placed in service after December 

31, 2023, is FEOC-compliant if it is not 

manufactured or assembled by a FEOC; 

(ii) An applicable critical mineral, 

with respect to a new clean vehicle 

placed in service after December 31, 

2024, is FEOC-compliant if it is not 

extracted, processed, or recycled by a 

FEOC; 

(iii) A battery cell, with respect to a 

new clean vehicle placed in service after 

December 31, 2023, and before January 

1, 2025, is FEOC-compliant if it is not 

manufactured or assembled by a FEOC 

and it contains only FEOC-compliant 

battery components; 

(iv) A battery cell, with respect to a 

new clean vehicle placed in service after 


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December 31, 2024, is FEOC-compliant 

if it is not manufactured or assembled 

by a FEOC and it contains only FEOCcompliant battery components and 

FEOC-compliant applicable critical 

minerals; and 

(v) A battery, with respect to a new 

clean vehicle placed in service after 

December 31, 2023, is FEOC-compliant 

if it contains only FEOC-compliant 

battery components (other than battery 

cells) and FEOC-compliant battery cells 

(as described in paragraph (a)(11)(iii) or 

(iv) of this section, as applicable). 

(12) Manufacturing. Manufacturing, 

with respect to a battery component, 

means the industrial and chemical steps 

taken to produce a battery component. 

(13) Non-traceable battery materials— 

(i) In general. Non-traceable battery 

materials mean specifically identified, 

low-value battery materials that 

originate from multiple sources and are 

commingled during refining, processing, 

or other production processes by 

suppliers to such a degree that the 

qualified manufacturer cannot, due to 

current industry practice, feasibly 

determine and attest to the origin of 

such battery materials. For this purpose, 

low-value battery materials are those 

that have low value compared to the 

total value of the battery. 

(ii) [Reserved]. 

(14) Processing. Processing means the 

non-physical processes involved in the 

refining of non-recycled substances or 

materials, including the treating, baking, 

and coating processes used to convert 

such substances and materials into 

constituent materials. Processing 

includes the chemical or thermal 

processes involved in refining. 

Processing does not include the 

physical processes involved in refining. 

(15) Recycling. Recycling means the 

series of activities during which 

recyclable materials containing critical 

minerals are transformed into 

specification-grade commodities and 

consumed in lieu of virgin materials to 

create new constituent materials; such 

activities result in new constituent 

materials contained in the battery from 

which the electric motor of a new clean 

vehicle draws electricity. 

(b) Due diligence—(1) In general. The 

qualified manufacturer must conduct 

due diligence with respect to all battery 

components and applicable critical 

minerals (and associated constituent 

materials) that are relevant to 

determining whether such components 

or minerals are FEOC-compliant. Such 

due diligence must comply with 

standards of tracing for battery materials 

available in the industry at the time of 

the attestation or certification that 

enable the manufacturer to know with 

reasonable certainty the provenance of 

applicable critical minerals, constituent 

materials, and battery components. 

Reasonable reliance on a supplier 

attestation or certification will be 

considered due diligence if the qualified 

manufacturer does not know or have 

reason to know after its due diligence 

that such supplier attestation or 

certification is incorrect. Due diligence 

must be conducted by the qualified 

manufacturer prior to its determining 

information necessary to establish any 

compliant-battery ledger under 

paragraph (d) of this section, and on an 

ongoing basis. 

(2) Transition rule for non-traceable 

battery materials. For any new clean 

vehicles for which the qualified 

manufacturer provides a periodic 

written report before January 1, 2027, 

the due diligence requirement of 

paragraph (b)(1) of this section may be 

satisfied by excluding identified nontraceable battery materials. To use this 

transition rule, qualified manufacturers 

must submit a report during the up-front 

review process described in paragraph 

(d)(2)(ii) of this section demonstrating 

how the qualified manufacturer will 

comply with the excluded entity 

restrictions once the transition rule is no 

longer in effect. 

(c) Excluded entity restriction—(1) In 

general. In the case of any new clean 

vehicle placed in service after December 

31, 2023, the batteries from which the 

electric motor of such vehicle draws 

electricity must be FEOC-compliant. A 

serial number or other identification 

system must be used to physically track 

FEOC-compliant batteries to specific 

new clean vehicles. The determination 

that a battery is FEOC-compliant is 

made as follows: 

(i) Step 1. First, the qualified 

manufacturer determines whether 

battery components and applicable 

critical minerals (and associated 

constituent materials) are FEOCcompliant, in accordance with 

paragraph (c)(4) of this section. 

(ii) Step 2. Next, the FEOC-compliant 

battery components and FEOCcompliant applicable critical minerals 

(and associated constituent materials) 

are physically tracked to specific battery 

cells, in accordance with paragraph 

(c)(3)(i) of this section. Alternatively, 

FEOC-compliant applicable critical 

minerals and associated constituent 

materials (but not battery components) 

may be allocated to battery cells, 

without physical tracking, in 

accordance with paragraph (c)(3)(ii) of 

this section. In addition, the 

determination under paragraph (c)(4) of 

this section may be made by applying 

the transition rule for non-traceable 

battery materials, in accordance with 

paragraph (c)(3)(iii) of this section. 

(iii) Step 3. Finally, the battery 

components, including battery cells, are 

physically tracked to specific batteries, 

in accordance with paragraph (c)(2) of 

this section. 

(2) Determination of FEOC-compliant 

batteries. The determination that a 

battery is FEOC-compliant must be 

made by physically tracking FEOCcompliant battery components 

(including battery cells) to such battery. 

With respect to battery cells, a serial 

number or other identification system 

must be used to physically track FEOCcompliant battery cells to such batteries. 

(3) Determination of FEOC-compliant 

battery cell—(i) In general. Except as 

provided in paragraph (c)(3)(ii) of this 

section, the determination that a battery 

cell contains FEOC-compliant battery 

components and FEOC-compliant 

applicable critical minerals and their 

associated constituent materials must be 

made by physically tracking FEOCcompliant battery components to 

specific batteries cells and by physically 

tracking the mass of FEOC-compliant 

applicable critical minerals and their 

associated constituent materials to 

specific batteries cells. 

(ii) Temporary allocation-based 

determination for applicable critical 

materials and associated constituent 

materials of a battery cell—(A) In 

general. The determination that a 

battery cell is a FEOC-compliant battery 

cell may be based on an allocation of 

available mass, produced or contracted 

for, of applicable critical minerals and 

their associated constituent materials to 

specific battery cells manufactured or 

assembled in a battery cell production 

facility, without the physical tracking of 

mass of applicable critical minerals and 

associated constituent materials to 

specific battery cells. 

(B) Allocation limited to applicable 

critical minerals in the battery cell. The 

rules of this paragraph (c)(3)(ii) are 

limited to applicable critical minerals 

and their associated constituent 

materials that are incorporated into a 

battery cell or its battery components. 

Battery components must be physically 

tracked. 

(C) Separate allocation for each class 

of constituent materials. Any allocation 

under this paragraph (c)(3)(ii) with 

respect to the mass of an applicable 

critical mineral must be made within 

the type of associated constituent 

materials (such as powders of cathode 

active materials, powders of anode 

active materials, or foils) in which such 

mineral is contained. Masses of an 

applicable critical mineral may not be 

aggregated across constituent materials 


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with which such applicable critical 

mineral is not associated, and an 

allocation of a mass of an applicable 

critical mineral may not be made from 

one type of constituent material to 

another. For example, assume that M, a 

qualified manufacturer, operates a 

battery cell production facility. M 

manufactures a line of battery cells that 

contains applicable critical mineral Z 

contained in constituent material 1 and 

applicable critical mineral Z contained 

in constituent material 2. With respect 

to constituent material 1, M procures 

20,000,000 kilograms (kg) of applicable 

critical mineral Z for the battery cell 

production facility, of which 4,000,000 

kg are FEOC-compliant and 16,000,000 

kg are not FEOC-compliant. With 

respect to constituent material 2, M 

procures another 15,000,000 kg of 

applicable critical mineral Z for the 

battery cell production facility, of which 

7,500,000 kg are FEOC-compliant and 

7,500,000 kg are not FEOC-compliant. M 

determines which battery cells are 

FEOC-compliant through an allocationbased determination with respect to 

battery cells manufactured or assembled 

in the battery cell production facility. 

Under this paragraph (c)(3)(ii)(C), any 

allocation with respect to the mass of 

applicable critical mineral Z must be 

made within the type of constituent 

materials in which such mineral is 

contained. Thus, M may not aggregate 

the 4,000,000 kg mass of FEOCcompliant applicable critical mineral Z 

contained in constituent material 1 with 

the 7,500,000 kg mass of FEOCcompliant applicable critical mineral Z 

contained in constituent material 2, and 

allocations may not be made from 

constituent material 1 to constituent 

material 2. As a result, overall FEOC 

compliance is constrained by the 20 

percent of constituent material 1 that is 

FEOC-compliant due to having 

4,000,000 kg of applicable critical 

mineral Z, even though 33 percent 

(7,500,000 + 4,000,000)/(20,000,000 + 

15,000,000) of the total mass of critical 

mineral Z is compliant. 

(D) Allocation within each product 

line of battery cells. Any allocation 

under this paragraph (c)(3)(ii) with 

respect to applicable critical minerals 

and their associated constituent 

materials must be allocated within one 

or more specific battery cell product 

lines of the battery cell production 

facility. 

(E) Limitation on number of FEOCcompliant battery cells. If a qualified 

manufacturer uses an allocation-based 

determination described in this 

paragraph (c)(3)(ii), the number of 

FEOC-compliant battery cells that can 

be produced from such allocation may 

not exceed the total number of battery 

cells for which there is enough of every 

FEOC-compliant applicable critical 

mineral. That number will necessarily 

be limited by the applicable critical 

mineral that has the lowest percentage 

of FEOC-compliant supply. For 

example, if a qualified manufacturer 

allocates applicable critical mineral A, 

which is 20 percent FEOC-compliant 

and applicable critical mineral B, which 

is 60 percent FEOC-compliant, to a 

battery cell product line, no more than 

20 percent of the battery cells in that 

battery cell product line will be treated 

as FEOC-compliant. 

(F) Termination of temporary 

allocation-based determination. The 

rules of this paragraph (c)(3)(ii) do not 

apply with respect to any new clean 

vehicle for which the qualified 

manufacturer is required to provide a 

periodic written report after December 

31, 2026. 

(iii) Transition rule for non-traceable 

battery materials. For any new clean 

vehicles for which the qualified 

manufacturer provides a periodic 

written report before January 1, 2027, 

the determination of whether a battery 

cell is FEOC-compliant under this 

paragraph (c)(3) may be satisfied by 

excluding identified non-traceable 

battery materials (and associated 

constituent materials). To use this 

transition rule, qualified manufacturers 

must submit a report during the up-front 

review process described in paragraph 

(d)(2)(ii) of this section demonstrating 

how the qualified manufacturer will 

comply with the excluded entity 

restrictions once the transition rule is no 

longer in effect. 

(4) Determination of FEOC-compliant 

battery components and applicable 

critical minerals—(i) In general. The 

determination of whether battery 

components and applicable critical 

minerals (and their associated 

constituent materials) are FEOCcompliant must be made prior to any 

determination under paragraphs (c)(2) 

and (3) of this section. 

(ii) Applicable critical minerals—(A) 

In general. Except as provided in 

paragraph (c)(4)(ii)(D) of this section, 

the determination of whether an 

applicable critical mineral is FEOCcompliant takes into account each step 

of extraction, processing, or recycling 

through the step in which such mineral 

is processed or recycled into a 

constituent material, even if the mineral 

is not in a form listed in section 

45X(c)(6) at every step. 

(B) Associated constituent materials. 

A constituent material is associated 

with an applicable critical mineral if the 

applicable critical mineral has been 

processed or recycled into a constituent 

material, even if that processing or 

recycling transformed the mineral into a 

form not listed in section 45X(c)(6). 

(C) Exception for applicable critical 

minerals not contained in the battery. 

An applicable critical mineral is 

disregarded for purposes of the 

determination under this paragraph 

(c)(4) if it is fully consumed in the 

production of the constituent material 

or battery component and no longer 

remains in any form in the battery. 

(D) Recycling. An applicable critical 

mineral and associated constituent 

material that is recycled is subject to the 

determination under this paragraph 

(c)(4) if the recyclable material contains 

an applicable critical mineral, contains 

material that was transformed from an 

applicable critical mineral, or if the 

recyclable material is used to produce 

an applicable critical mineral at any 

point during the recycling process. The 

determination of whether an applicable 

critical mineral or associated 

constituent material that is incorporated 

into a battery via recycling is FEOCcompliant takes into account only 

activities that occurred during the 

recycling process. 

(iii) Timing of determination of FEOCcompliant status. Whether an entity is a 

FEOC is determined as of the time of the 

entity’s performance of the relevant 

activity, which for applicable critical 

minerals is the time of extraction, 

processing, or recycling, and for battery 

components is the time of 

manufacturing or assembly. The 

determination of whether an applicable 

critical mineral is FEOC-compliant is 

determined at the end of processing or 

recycling of the applicable critical 

mineral into a constituent material, 

taking into account all applicable steps 

through and including final processing 

or recycling. 

(iv) Examples. The following 

examples illustrate the rules under this 

paragraph (c)(4): 

(A) Example 1: Timing of FEOC 

compliance determination. Mineral X, 

an applicable critical mineral, was not 

extracted by a FEOC but was later 

processed by a FEOC. Mineral X is not 

FEOC-compliant because one step of the 

extraction and processing was 

performed by a FEOC. Any battery 

containing Mineral X is not FEOCcompliant. 

(B) Example 2: Form of applicable 

critical mineral. Mineral Y is extracted 

by a FEOC and is intended to be 

incorporated into the battery of an 

electric vehicle. Mineral Y is not in a 

form listed in section 45X(c)(6) at the 

time of such extraction, but 

subsequently it is refined into an 


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applicable critical mineral form listed in 

section 45X(c)(6) by an entity that is not 

a FEOC. Mineral Y is not FEOCcompliant pursuant to this paragraph 

(c)(4) because it was extracted by a 

FEOC, regardless of its form at the time 

of extraction. Any battery containing 

Mineral Y is not FEOC-compliant. 

(C) Example 3: Recycling of 

applicable critical mineral. Mineral Z, 

an applicable critical mineral in a form 

listed in section 45X(c)(6), was 

processed by a FEOC in a prior 

production process. Mineral Z 

subsequently was derived from 

recyclable material in a form not listed 

in section 45X(c)(6). Mineral Z was 

recycled by an entity that is not a FEOC. 

Mineral Z is subject to a determination 

of whether it is FEOC-compliant at the 

end of the recycling process, because it 

was at one time an applicable critical 

mineral. Mineral Z is FEOC-compliant 

pursuant to this paragraph (c)(4) 

because it was not recycled by a FEOC. 

(5) Third-party manufacturers or 

suppliers. The determinations under 

paragraphs (c)(2) through (4) of this 

section may be made by a third-party 

manufacturer or supplier that operates a 

battery cell production facility provided 

that: 

(i) The third-party manufacturer or 

supplier performs the due diligence 

described in paragraph (b) of this 

section; 

(ii) The third-party manufacturer or 

supplier provides the qualified 

manufacturer of the new clean vehicle 

information sufficient to establish a 

basis for the determinations under 

paragraphs (c)(2) through (4) of this 

section, including information related to 

the due diligence described in 

paragraph (c)(5)(i) of this section; 

(iii) The third-party manufacturer or 

supplier is contractually required to 

provide the information in paragraph 

(c)(5)(ii) of this section to the qualified 

manufacturer and is contractually 

required to inform the qualified 

manufacturer of any change in the 

supply chain that affects the 

determinations of FEOC compliance 

under paragraph (c)(2) and (4) of this 

section; and 

(iv) If there are multiple third-party 

manufacturers or suppliers (such as a 

case in which a qualified manufacturer 

contracts with a battery manufacturer, 

who, in turn, contracts with a battery 

cell manufacturer or supplier who 

operates a battery cell production 

facility), the due diligence and 

information requirements of this 

paragraph (c) must be satisfied by each 

such manufacturer or supplier either 

directly to the qualified manufacturer or 

indirectly through contractual 

relationships. 

(d) Compliant-battery ledger—(1) In 

general. For new clean vehicles placed 

in service after December 31, 2024, the 

qualified manufacturer must determine 

and provide information to the IRS to 

establish a compliant-battery ledger for 

each calendar year, as described in 

paragraphs (d)(2)(i) and (ii) of this 

section. One compliant-battery ledger 

may be established for all vehicles for a 

calendar year, or there may be separate 

ledgers for specific models or classes of 

vehicles to account for different battery 

cell chemistries or differing quantities of 

cells in each battery. 

(2) Determination of number of 

batteries—(i) In general. To establish a 

compliant-battery ledger for a calendar 

year, the qualified manufacturer must 

determine the number of batteries, with 

respect to new clean vehicles (as 

described in section 30D(d) and 

§ 1.30D–2(m)) for which the qualified 

manufacturer anticipates providing a 

periodic written report during the 

calendar year, that it knows or 

reasonably anticipates will be FEOCcompliant, pursuant to the requirements 

of paragraphs (b) and (c) of this section. 

The determination is based on the 

battery components and applicable 

critical minerals (and associated 

constituent materials) that are procured 

or contracted for the calendar year and 

that are known or reasonably 

anticipated to be FEOC-compliant 

battery components or FEOC-compliant 

applicable critical minerals, as 

applicable. 

(ii) Upfront review. The qualified 

manufacturer must attest to the number 

of FEOC-compliant batteries determined 

under paragraph (d)(2)(i) of this section 

and provide the basis for the 

determination, including attestations, 

certifications and documentation 

demonstrating compliance with 

paragraphs (b) and (c) of this section, at 

the time and in the manner provided in 

the Internal Revenue Bulletin. The IRS, 

with analytical assistance from the DOE, 

will review the attestations, 

certifications, and documentation. Once 

the IRS determines that the qualified 

manufacturer provided the required 

attestations, certifications, and 

documentation, the IRS will approve or 

reject the determined number of FEOCcompliant batteries. The IRS may 

approve the determined number in 

whole or part. The approved number is 

the initial balance in the compliantbattery ledger. 

(iii) Decrease or increase to 

compliant-battery ledger—(A) Once the 

compliant-battery ledger is established 

with respect to a calendar year, the 

qualified manufacturer must determine 

and take into account any decrease in 

the number of FEOC-compliant batteries 

for such calendar year, and any of the 

prior three calendar years for which the 

qualified manufacturer had a compliantbattery ledger, within 30 days of 

discovery. In addition, the qualified 

manufacturer may determine and take 

into account any increase in the number 

of FEOC-compliant batteries. Such 

determinations, and any supporting 

attestations, certifications, and 

documentation, must be provided on a 

periodic basis, in accordance with 

paragraph (d)(2)(ii) of this section and 

the manner provided in the Internal 

Revenue Bulletin. 

(B) The decrease described in 

paragraph (d)(2)(iii)(A) of this section 

may decrease the compliant-battery 

ledger below zero, creating a negative 

balance in the compliant-battery ledger. 

(C) If any decrease described in 

paragraph (d)(2)(iii)(A) of this section is 

determined subsequent to the calendar 

year to which it relates, the decrease 

must be taken into account in the year 

in which the change is discovered. 

(D) Any remaining balance in the 

compliant-battery ledger at the end of 

the calendar year, whether positive or 

negative, will be included in the 

compliant-battery ledger for the 

subsequent calendar year. If a qualified 

manufacturer has multiple compliantnegative battery accounts, any negative 

balance will first be included in the 

compliant-battery ledger for the same 

model or class of vehicles for the 

subsequent calendar year. However, if 

there is no ledger for the same model or 

class of vehicles in the subsequent 

calendar year, the IRS can account for 

such negative balance in the ledger of a 

different model or class of vehicles of 

the qualified manufacturer. 

(3) Tracking FEOC-compliant 

batteries. The compliant-battery ledger 

for a calendar year must be updated to 

track the qualified manufacturer’s 

available FEOC-compliant batteries, by 

reducing the balance in the ledger as the 

qualified manufacturer submits periodic 

written reports reporting the vehicle 

identification numbers (VINs) of new 

clean vehicles as eligible for the credit 

under section 30D, at the time and in 

the manner provided in the Internal 

Revenue Bulletin. If the balance in the 

compliant-battery ledger of the qualified 

manufacturer for a calendar year is zero 

or less than zero, the qualified 

manufacturer may not submit additional 

periodic written reports with respect to 

section 30D until the number of 

available FEOC-compliant batteries is 

increased as described in paragraph 

(d)(2)(iii)(A) of this section. 


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(4) Reconciliation of battery estimates. 

After the end of any calendar year for 

which a compliant-battery ledger is 

established, the IRS may require a 

qualified manufacturer to provide 

attestations, certifications, and 

documentation to support the accuracy 

of the number of the qualified 

manufacturer’s FEOC-compliant 

batteries for such calendar year, 

including with respect to any changes 

described in paragraph (d)(2)(iii) of this 

section, at the time and in the manner 

provided in the Internal Revenue 

Bulletin. 

(e) Rule for 2024—(1) In general. For 

new clean vehicles that are placed in 

service after December 31, 2023, and 

prior to January 1, 2025, the qualified 

manufacturer must determine whether 

the battery components contained in 

vehicles satisfy the requirements of 

section 30D(d)(7)(B) and whether 

batteries contained in the vehicle are 

FEOC-compliant under the rules of 

paragraphs (b) and (c) of this section. 

The qualified manufacturer must make 

an attestation with respect to such 

determinations at the time and in the 

manner provided in the Internal 

Revenue Bulletin. However, for any new 

clean vehicles for which the qualified 

manufacturer provides a periodic 

written report before the date that is 30 

days after the date these regulations are 

finalized, provided that the qualified 

manufacturer has determined that its 

supply chains of each battery 

component with respect such vehicles 

contain only FEOC-compliant battery 

components: 

(i) For purposes of paragraphs (c)(2) 

and (3) of this section, the 

determination of which battery cells or 

batteries, as applicable, contain FEOCcompliant battery components may be 

determined without physical tracking; 

(ii) For purposes of paragraph (c)(2) of 

this section, the determination of which 

batteries contain FEOC-compliant 

battery cells may be determined without 

physical tracking (and without the use 

of a serial number or other identification 

system); and 

(iii) For purposes of paragraph (c)(1) 

of this section, the determination of 

which vehicles contain FEOC-compliant 

batteries may be determined, without 

physical tracking (and without the use 

of a serial number or other identification 

system). 

(2) Determination. The determination 

that a qualified manufacturer’s supply 

chains of each battery component 

contain only FEOC-compliant battery 

components may be made with respect 

to specific models or classes of vehicles. 

(f) Inaccurate attestations, 

certifications or documentation—(1) In 

general. If the IRS determines, with 

analytical assistance from the DOE and 

after review of the attestations, 

certification and documentation 

described in paragraph (d) of this 

section, that a qualified manufacturer 

has provided attestations, certifications, 

or documentation that contain 

inaccurate information, it may take 

appropriate action as described in 

paragraphs (f)(2) and (3) of this section. 

Such action would affect vehicles and 

qualified manufacturers on a 

prospective basis. 

(2) Inadvertence. If the IRS determines 

that the attestations, certifications or 

documentation for a specific new clean 

vehicle contain errors due to 

inadvertence, the following may be 

required: 

(i) The qualified manufacturer may 

cure the errors identified, including by 

a decrease in the compliant-battery 

ledger as described in paragraph 

(d)(2)(iii) of this section. If the qualified 

manufacturer has multiple compliantbattery ledgers, the IRS may determine 

which ledger is to be decreased. 

(ii) If the errors are not cured, in the 

case of a new clean vehicle that has not 

been placed in service but for which the 

qualified manufacturer has submitted a 

periodic written report certifying 

compliance with the requirement of 

section 30D(d), such vehicle is no longer 

considered a new clean vehicle eligible 

for the section 30D credit. 

(iii) If the errors are not cured, in the 

case of a new clean vehicle that has not 

been placed in service and for which the 

qualified manufacturer has not 

submitted a periodic written report 

certifying compliance with the 

requirement of section 30D(d), the 

qualified manufacturer may not submit 

such periodic written report. 

(iv) If the errors are not cured, in the 

case of a new clean vehicle that has 

been placed in service, the IRS may 

require a decrease in the qualified 

manufacturer’s compliant-battery ledger 

as described in paragraph (d)(2)(iii) of 

this section. If the qualified 

manufacturer has multiple compliantbattery ledgers, the IRS may determine 

which ledger is to be decreased. 

(3) Intentional disregard or fraud. If 

the IRS determines that a qualified 

manufacturer intentionally disregarded 

attestation, certification, or 

documentation requirements or reported 

information fraudulently or with 

intentional disregard, the following may 

be required: 

(i) All vehicles of the qualified 

manufacturer that have not been placed 

in service may no longer be considered 

new clean vehicles eligible for the 

section 30D credit. 

(ii) The IRS may terminate the written 

agreement between the IRS and the 

manufacturer, thereby terminating the 

manufacturer’s status as a qualified 

manufacturer as described in § 1.30D– 

2(l). The manufacturer would be 

required to submit a new written 

agreement to reestablish qualified 

manufacturer status at the time and in 

the manner provided in the Internal 

Revenue Bulletin. 

(g) Examples. The following examples 

illustrate the rules under paragraphs (b) 

through (d) of this section: 

(1) Example 1: In general—(i) Facts. 

M is a manufacturer of new clean 

vehicles and batteries. M also 

manufactures or assembles battery cells 

at its own battery cell production 

facility. M manufactures a line of new 

clean vehicles that it anticipates will be 

placed in service in calendar year 2025. 

Each vehicle contains one battery, and 

each battery contains 1,000 battery cells. 

All battery cells are produced at the 

same battery cell production facility. 

The battery cells are not manufactured 

or assembled by a FEOC. Each battery 

cell contains 10 mass of battery 

component A. M has procured or is 

under contract to procure 10,000,000 

mass of battery component A for the 

battery cell production facility, of which 

6,000,000 mass is from supplier 1 and 

4,000,000 mass is from supplier 2. 

(ii) Analysis. (A) Under paragraph (b) 

of this section, M must conduct due 

diligence on all battery components and 

applicable critical minerals (and 

associated constituent materials) that 

are contained in the battery to 

determine whether such components or 

minerals are FEOC-compliant. 

(B) Under paragraph (c)(4) of this 

section, M must first determine whether 

the battery components and applicable 

critical minerals (and associated 

constituent materials) are FEOCcompliant. From its due diligence, M 

determines that, of the 10,000,000 mass 

of battery component A, the 6,000,000 

mass from supplier 1 is FEOC-compliant 

while the 4,000,000 mass from supplier 

2 is not FEOC-compliant. M determines 

that all other battery components and 

applicable critical minerals (and 

associated constituent materials) of the 

battery cell are FEOC-compliant, that 

the battery cell is not manufactured or 

assembled by a FEOC, and that all 

battery components (excluding 

components of the battery cell) of the 

battery are FEOC-compliant. 

(C) Under paragraph (c)(3) of this 

section, M must determine which 

battery cells are FEOC-compliant 

through the physical tracking of the 

6,000,000 mass of FEOC-compliant 

battery component A to determine 


ddrumheller on DSK120RN23PROD with PROPOSALS1
Federal Register / Vol. 88, No. 231 / Monday, December 4, 2023 / Proposed Rules 84115 

which 600,000 (6,000,000/10) battery 

cells are FEOC-compliant. Under 

paragraph (c)(2) of this section, M must 

use a serial number or other 

identification system to track the 

600,000 FEOC-compliant battery cells to 

600 (600,000/1,000) specific batteries. 

(D) Under paragraph (d)(1) of this 

section, a compliant-battery ledger must 

be established for calendar year 2025. 

For purposes of paragraph (d)(2)(i) of 

this section, M determines that it will 

manufacture 600 batteries for calendar 

year 2025 that are FEOC-compliant. 

Under paragraph (d)(2)(ii) of this 

section, M attests to the 600 FEOCcompliant batteries and provides the 

basis for the determination, including 

attestations, certifications, and 

documentation demonstrating 

compliance with paragraphs (b) and (c) 

of this section. Once the IRS, with 

analytical assistance from the DOE, 

approves the number, a compliantbattery ledger is established with a 

balance of 600 FEOC-compliant 

batteries. 

(E) M manufactures 100 vehicles that 

it anticipates will be placed in service 

in 2025, for which it provides periodic 

written reports providing the VINs of 

the vehicles and indicating that such 

vehicles qualify for the section 30D 

credit. Under paragraph (d)(3) of this 

section, the compliant-battery ledger is 

updated to track the number of FEOCcompliant batteries. The number of 

batteries contained in the compliantbattery ledger is reduced from 600 to 

500. Assuming all of the other 

requirements of section 30D and the 

regulations thereunder are met, the 100 

vehicles are new clean vehicles that 

qualify for purposes of section 30D. 

(2) Example 2: Rules for third-party 

suppliers—(i) Facts. The facts are the 

same as example 1, except that M 

contracts with BM, a battery 

manufacturer, for the provision of 

batteries, and BM contracts with BCS, a 

battery cell supplier that operates a 

battery cell production facility, for the 

provision of battery cells. 

(ii) Analysis. Under paragraph (c)(5) 

of this section, BCS may make the 

determination in paragraphs (c)(2) 

through (4) of this section, provided that 

M, BM and BCS perform due diligence 

as described in paragraph (b) of this 

section. In addition, BM and BCS must 

provide M with information sufficient to 

establish a basis for the determinations 

under paragraphs (c)(2) through (4) of 

this section, including information 

related to due diligence. Finally, BM 

and BCS must be contractually required 

to provide the required information to 

M, and must also be required to inform 

the qualified manufacturer of any 

change in supply chains that affects the 

determinations of FEOC compliance 

under paragraphs (c)(2) and (4) of this 

section. The contractual requirement 

may be satisfied if BM and BCS each 

have the contractual obligation to M. 

Alternatively, it may be satisfied if BCS 

has a contractual obligation to BM and 

BM, in turn, has a contractual obligation 

to M. 

(3) Example 3: Applicable critical 

minerals—(i) Facts. The facts are the 

same as example 1. In addition, each 

battery cell contains 20 kilograms (kgs) 

of applicable critical mineral Z 

contained in a constituent material. M 

has procured or is under contract to 

20,000,000 kgs of Z for the battery cell 

production facility, of which 4,000,000 

kgs are from supplier 3 and 16,000,000 

kgs are from supplier 4. 

(ii) Analysis. The analysis is the same 

as in example 1. In addition, from its 

due diligence, M determines that of the 

20,000,000 kg of applicable critical 

mineral Z, the 4,000,000 kg from 

supplier 3 is FEOC-compliant while the 

16,000,000 kg from supplier 4 is not 

FEOC-compliant. Under paragraph (c)(3) 

of this section, M may determine which 

battery cells are FEOC-compliant 

through the physical tracking of the 

4,000,000 kg of FEOC-compliant 

applicable critical mineral Z to 200,000 

(4,000,000/20) of the battery cells that 

also contain battery component A, in 

order to determine which 200,000 

battery cells are FEOC-compliant. 

Alternatively, M may determine which 

200,000 battery cells are FEOCcompliant through an allocation of 

applicable critical mineral Z (but not 

battery component A) to battery cells, 

without physical tracking, under 

paragraph (c)(3)(ii) of this section. 

Under paragraph (c)(2) of this section, M 

must use a serial number or other 

identification system to track the 

200,000 FEOC-compliant battery cells to 

200 (200,000/1,000) specific batteries. 

(4) Example 4: Comprehensive 

example—(i) Facts. M is a manufacturer 

of new clean vehicles and batteries. M 

also manufactures or assembles battery 

cells at its own battery cell production 

facility. M manufactures a line of new 

clean vehicles. Each vehicle contains 

one battery. All battery cells are 

produced at the same battery cell 

production facility. The battery cells are 

not manufactured or assembled by a 

FEOC. Each battery contains 1,000 NMC 

811 battery cells. M anticipates 

manufacturing 1,000,000 such battery 

cells for a line of new clean vehicles 

that it anticipates will be placed in 

service in calendar year 2025. 

(A) Each battery cell contains 1 

cathode electrode, 1 anode electrode, 1 

separator, and 1 liquid electrolyte. Thus, 

M procures 1,000,000 of each battery 

component for the battery cell 

production facility. 

(B) In addition, each NMC 811 

cathode incorporates cathode active 

material (a constituent material) 

produced using 2.5 kg of applicable 

critical minerals, consisting of 0.5 kg of 

lithium hydroxide, 1.6 kg of nickel 

sulfate, 0.2 kg of cobalt sulfate, and 0.2 

kg of manganese sulfate. Thus, M 

procures 2,500 metric tons (2.5 kg * 

1,000,000/1,000) of applicable critical 

minerals for the battery cell production 

facility, resulting in purchase 

agreements for 500 metric tons of 

lithium, 1,600 metric tons of nickel, 200 

metric tons of cobalt, and 200 metric 

tons of manganese. 

(ii) Analysis. (A) Under § 1.30D–6(b), 

M must conduct due diligence on all 

battery components and applicable 

critical minerals (and associated 

constituent materials) that are contained 

in the battery to determine whether 

such components or minerals are FEOCcompliant. 

(B) Under paragraph (c)(4) of this 

section, M must first determine whether 

the battery components and applicable 

critical minerals (and associated 

constituent materials) are FEOCcompliant. From its due diligence M 

determines that, of the cathode 

electrodes, 600,000 are not 

manufactured by a FEOC and are 

therefore FEOC-compliant; 400,000 are 

manufactured by a FEOC and are 

therefore non-compliant. Of the critical 

minerals that M has procured, M 

determines that 250 metric tons of 

lithium hydroxide, 1,200 metric tons of 

nickel sulfate, and all of the cobalt 

sulfate and manganese sulfate are FEOCcompliant. All other battery components 

and applicable critical minerals of the 

battery cells are FEOC-compliant. 

(C) Under paragraph (c)(3) of this 

section, M must determine which 

battery cells are FEOC-compliant 

through the physical tracking of battery 

components. M may determine which 

battery cells are FEOC-compliant 

through the physical tracking of 

applicable critical minerals. 

Alternatively, M may determine which 

battery cells are FEOC-compliant 

through an allocation of applicable 

critical minerals (and associated 

constituent materials) but not battery 

components. 

(D) Under an allocation-based 

determination, M has procured 500 

metric tons of lithium hydroxide 

incorporated into a constituent material 

for the battery cell production facility, 

of which 50 percent (250/500 metric 

tons) is FEOC-compliant. M has 


ddrumheller on DSK120RN23PROD with PROPOSALS1
84116 Federal Register / Vol. 88, No. 231 / Monday, December 4, 2023 / Proposed Rules 

procured 1,600 metric tons of nickel 

sulfate incorporated into a constituent 

material for the battery cell production 

facility, of which 75 percent (1,200/ 

1,600 metric tons) is FEOC-compliant. 

Since the lithium hydroxide is the least 

compliant applicable critical mineral or 

component, M allocates the FEOCcompliant lithium hydroxide mass to 50 

percent or 500,000 (50 percent * 

1,000,000) of the total battery cells, and 

to battery cells that contain FEOCcompliant cathode electrodes and have 

been allocated FEOC-compliant nickel 

sulfate. Under paragraph (c)(2)(ii)(E) of 

this section, the quantity of FEOCcompliant battery cells is limited by the 

applicable critical mineral (lithium 

hydroxide) that has the lowest 

percentage (50 percent) of FEOCcompliant supply. 

(E) Under paragraph (c)(2) of this 

section, M must use a serial number or 

other identification system to track the 

500,000 FEOC-compliant battery cells to 

500 (500,000/1,000) specific batteries. 

(F) Under paragraph (d)(1) of this 

section, a compliant-battery ledger must 

be established for calendar year 2025. 

For purposes of paragraph (d)(2)(i) of 

this section, M determines that it will 

manufacture 500 batteries for calendar 

year 2025 that are FEOC-compliant. 

Under paragraph (d)(2)(ii) of this 

section, M attests to the 500 FEOCcompliant batteries and provides the 

basis for the determination, including 

attestations, certifications, and 

documentation demonstrating 

compliance with paragraphs (b) and (c) 

of this section. Once the IRS, with 

analytical assistance from the DOE, has 

approved the number, a compliantbattery ledger is established with a 

balance of 500 FEOC-compliant 

batteries. 

(h) Severability. The provisions of this 

section are separate and severable from 

one another. If any provision of this 

section is stayed or determined to be 

invalid, it is the agency’s intention that 

the remaining provisions will continue 

in effect. 

(i) Applicability date. This section 

applies to new clean vehicles placed in 

service after December 31, 2023. 

Douglas W. O’Donnell, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. 2023–26513 Filed 12–1–23; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

42 CFR Part 93 

RIN 0937–AA12 

Public Health Service Policies on 

Research Misconduct; Extension of 

Comment Period 

AGENCY: U.S. Department of Health and 

Human Services (HHS). 

ACTION: Proposed rule; Extension of 

comment period. 

SUMMARY: The Department of Health and 

Human Services (HHS), Office of the 

Secretary, Office of the Assistant 

Secretary for Health (OASH), Office of 

Research Integrity (ORI) is extending the 

comment period by 30 days for the 

proposed rule entitled ‘‘Public Health 

Service Policies on Research 

Misconduct’’ published in the Federal 

Register on October 6, 2023. Public 

comments must be submitted on or 

before January 4, 2024. 

DATES: HHS is extending the comment 

period by 30 days on the proposed rule 

published October 6, 2023 at 88 FR 

69583. Submit comments on or before 

January 4, 2024. 

ADDRESSES: For efficient management of 

comments, HHS requests that all 

comments be submitted electronically to 

https://www.regulations.gov (referred to 

hereafter as ‘‘regulations.gov’’). In 

commenting, please refer to the 

Regulatory Information Number (RIN) 

[0937–AA12]. 

Instructions: Enter the RIN in the 

search field at https://

www.regulations.gov and click on 

‘‘Search.’’ To view the proposed rule, 

click on the title of the rule. To 

comment, click on ‘‘Comment’’ and 

follow the instructions. If you are 

uploading multiple attachments into 

regulations.gov, please number and 

label all attachments; https://

www.regulations.gov will not 

automatically number them. All 

relevant comments will be posted 

without change to https://

www.regulations.gov, including any 

personal information provided. For 

detailed instructions on submitting 

comments and additional information 

on the rulemaking process, see the 

‘‘Public Participation’’ heading of the 

SUPPLEMENTARY INFORMATION section in 

the Notice of Proposed Rulemaking 

published at 88 FR 69583. 

Docket: For access to the docket to 

read comments received, please go to 

https://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Sheila Garrity, JD, MPH, MBA, Office of 

Research Integrity, 1101 Wootton 

Parkway, Suite 240, Rockville, MD 

20852; telephone 240–453–8200. 

SUPPLEMENTARY INFORMATION: The 

Agency is extending the deadline to 

comment on the proposed rule entitled 

‘‘Public Health Service Policies on 

Research Misconduct’’ published in the 

Federal Register on October 6, 2023 (88 

FR 69583), in response to requests for an 

extension to allow interested persons 

additional time to submit comments. 

Dated: November 29, 2023. 

Xavier Becerra, 

Secretary, Department of Health and Human 

Services. 

[FR Doc. 2023–26590 Filed 12–1–23; 8:45 am] 

BILLING CODE 4150–31–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Office of Inspector General 

42 CFR Part 1001 

Solicitation of Proposals for New and 

Modified Safe Harbors and Special 

Fraud Alerts 

AGENCY: Office of Inspector General 

(OIG), Department of Health and Human 

Services (HHS or the Department). 

ACTION: Notification of intent to develop 

regulations. 

SUMMARY: In accordance with section 

205 of the Health Insurance Portability 

and Accountability Act of 1996 

(HIPAA), this annual notification 

solicits proposals and recommendations 

for developing new, or modifying 

existing, safe harbor provisions under 

section 1128B(b) of the Social Security 

Act (the Act), the Federal anti-kickback 

statute, as well as developing new OIG 

Special Fraud Alerts. 

DATES: To ensure consideration, public 

comments must be received no later 

than 5 p.m. on February 2, 2024. 

ADDRESSES: In commenting, please refer 

to file code OIG–1123–N. Because of 

staff and resource limitations, we cannot 

accept comments by fax transmission. 

You may submit comments in one of 

two ways (no duplicates, please): 

1. Electronically. You may submit 

comments electronically at https://

www.regulations.gov. Follow the 

‘‘Submit a comment’’ instructions and 

refer to file code OIG–1123–N. 

2. By regular, express, or overnight 

mail. You may send written comments 

to the following address: OIG, 

Regulatory Affairs, HHS, Attention: 

OIG–1123–N, Room 5628, Cohen 

Building, 330 Independence Avenue 

SW, Washington, DC 20201. Please 


ddrumheller on DSK120RN23PROD with PROPOSALS1