S. 541 — ELITE Vehicles Act

This section repeals the clean vehicle tax credit under IRC §30D (i.e., up to $7,500 for qualifying new clean vehicles such as battery electric, plug-in hybrid, and fuel cell vehicles meeting North American final assembly, battery, and critical mineral requirements). (Thus, taxpayers may claim the credit for vehicles purchased or subject to a written binding contract to purchase before 30 days after enactment.) It also makes conforming amendments to multiple IRC sections (e.g., striking cross-references to §30D and relocating the definition of Indian tribal government—referencing the most recent list of federally recognized tribes published pursuant to 25 U.S.C. §5131—to §179D(d)(6) for the energy efficient commercial buildings deduction).

This section repeals the previously-owned clean vehicle tax credit (IRC §25E). (Thus, taxpayers may claim a tax credit of up to $4,000 for the purchase of a qualified previously-owned clean vehicle—i.e., a used plug-in electric or fuel cell vehicle meeting specified criteria—if purchased or subject to a written binding contract before 30 days after enactment.)

This section repeals the tax credit for qualified commercial clean vehicles (IRC §45W), which provides businesses and tax-exempt organizations a credit of up to $7,500 (for vehicles ≤14,000 pounds GVWR) or $40,000 (for heavier vehicles) for zero-emission or clean-fuel vehicles used in a trade or business. (Thus, eligible taxpayers may claim the credit for vehicles purchased or subject to a written binding contract entered into before 30 days after enactment.)

This section excludes electric vehicle recharging property from the definition of qualified alternative fuel vehicle refueling property eligible for the Section 30C tax credit—previously included under subsection (c)(1)(B)(iii)—and strikes the credit's termination provision (previously after December 31, 2032). The amendments apply to property purchased, or for which a written binding contract to purchase has been entered into, after 30 days after enactment.