Termination of clean vehicle credit

(a) In general Section 30D is amended— (1) by redesignating subsection (h) as subsection (i), and (2) in subsection (i), as so redesignated, by striking December 31, 2032 and inserting December 31, 2026. (b) Special rule for taxable year 2026 Section 30D is amended by inserting after subsection (g) the following new subsection: (h) Special rule for taxable year 2026 (1) In general With respect to any vehicle placed in service after December 31, 2025, such vehicle shall not be treated as a new clean vehicle for purposes of this section if, during the period beginning on December 31, 2009, and ending on December 31, 2025, the number of covered vehicles manufactured by the manufacturer of such vehicle which are sold for use in the United States is greater than 200,000. (2) Covered vehicles For purposes of this subsection, the term covered vehicles means— (A) with respect to vehicles placed in service before January 1, 2023, new qualified plug-in electric drive motor vehicles (as defined in subsection (d)(1), as in effect on December 31, 2022), and (B) new clean vehicles. (3) Controlled groups Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection.. (c) Conforming amendments Section 30D(e) is amended— (1) in paragraph (1)(B)— (A) in clause (iii), by inserting and after the comma at the end, (B) in clause (iv), by striking, and and inserting a period, and (C) by striking clause (v), and (2) in paragraph (2)(B)— (A) in clause (ii), by inserting and after the comma at the end, (B) in clause (iii), by striking the comma at the end and inserting a period, and (C) by striking clauses (iv) through (vi). (d) Effective date The amendments made by this section shall apply to vehicles placed in service after December 31, 2025.