Processing
(37) 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. (38) Procurement chain. Procurement chain means procurement chain as defined in 1.30D-3(c)(1)(i). (39) Qualifying battery component content. Qualifying battery component content means qualifying battery component content as defined in 1.30D-3(c)(2)(iii). (40) Qualifying critical mineral. Qualifying critical mineral means qualifying critical mineral as defined in 1.30D-3(c)(1)(ii). (41) Qualifying critical mineral content. Qualifying critical mineral content means qualifying critical mineral content as defined in 1.30D-3(c)(1)(iii). (42) Qualified manufacturer. A qualified manufacturer means a manufacturer that meets the requirements described in section 30D(d)(3) at the time the manufacturer submits a periodic written report to the IRS under a written agreement described in section 30D(d)(3). The term qualified manufacturer does not include any manufacturer whose qualified manufacturer status has been terminated by the IRS. The IRS may terminate qualified manufacturer status for fraud, intentional disregard, or gross negligence with respect to any requirements of section 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 paragraph (b)(32) of this section and any attestations, documentation, or certifications described in 1.30D-3(d) and 1.30D-6(d), at the time and in the manner provided in the Internal Revenue Bulletin (see 601.601 of this chapter). See 1.30D-6(f) for additional rules regarding inaccurate determinations and documentation. The IRS may also terminate qualified manufacturer status for fraud, intentional disregard, or gross negligence with respect to any requirement of section 25E or section 45W or any regulations thereunder. (43) Recycling(i) In general. 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 clean vehicle battery. All physical, chemical, and thermal treatments or modifications that convert recycled feedstocks to specification grade constituent materials are included in recycling. However, recycled applicable critical minerals and associated constituent materials are only subject to the requirements under 1.30D-3(a) and 1.30D-6 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 requirements under 1.30D-3(a) and 1.30D-6 only take into account activities that occurred during the recycling process. (ii) Example: Recycling of applicable critical mineral. Mineral Z, an applicable critical mineral in a form listed in section 45X(c)(6), was processed by A 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 B. The requirements under 1.30D-3 and 1.30D-6 only take into account the activities conducted by B. (44) Registered dealer. Registered dealer means registered dealer as defined in 1.30D-5(b)(8). (45) Section 30D regulations. Section 30D regulations means 1.30D-1, this section, and 1.30D-3 through 1.30D-6. (46) Seller report. Seller report means the report described in section 30D(d)(1)(H) that the seller of a new clean vehicle provides to the taxpayer and the IRS in the manner provided in, and containing the information described in, guidance published in the Internal Revenue Bulletin (see 601.601 of this chapter). The seller report must be transmitted to the IRS electronically. The term seller report does not include a report rejected by the IRS due to the information contained therein not matching IRS records. (47) Time of sale. Time of sale means time of sale as defined in 1.30D-5(b)(9). (48) Total incremental value of battery components. Total incremental value of battery components means total incremental value of battery components as defined in 1.30D-3(c)(2)(iv). (49) Total incremental value of North American battery components. Total incremental value of North American battery components means total incremental value of North American battery components as defined in 1.30D-3(c)(2)(v). (50) Total traced qualifying value. Total traced qualifying value means total traced qualifying value as defined in 1.30D-3(c)(1)(iv). (51) Total value of critical minerals. Total value of critical minerals means total value of critical minerals as defined in 1.30D-3(c)(1)(v). (52) Total value of qualifying critical minerals. Total value of qualifying critical minerals means total value of qualifying critical minerals as defined in 1.30D-3(c)(1)(vi). (53) Traced qualifying value. Traced qualifying value means traced qualifying value as defined in 1.30D-3(c)(1)(vii). (54) Value. Value, with respect to property, means the arm's-length price that was paid or would be paid for the property by an unrelated purchaser determined in accordance with the principles of section 482 of the Code and regulations thereunder. (55) Value added. Value added means value added as defined in 1.30D-3(c)(1)(viii). (56) Vehicle classification(i) In general. Vehicle classification means the vehicle classification of a new clean vehicle determined consistent with the rules and definitions provided in 40 CFR 600.315-08 and this paragraph (b)(56) for vans, sport utility vehicles, pickup trucks, and other vehicles. (ii) Van. Van means a vehicle classified as a van or minivan under 40 CFR 600.315-08(a)(2)(iii) and (iv), or otherwise so classified by the Administrator of the EPA pursuant to 40 CFR 600.315-08(a). (iii) Sport utility vehicle. Sport utility vehicle means a vehicle classified as a small sport utility vehicle or standard sport utility vehicle under 40 CFR 600.315-08(a)(2)(v) and (vi), or otherwise so classified by the Administrator of the EPA pursuant to 40 CFR 600.315-08(a). (iv) Pickup truck. Pickup truck means a vehicle classified as a small pickup truck or standard pickup truck under 40 CFR 600.315-08(a)(2)(i) and (ii), or otherwise so classified by the Administrator of the EPA pursuant to 40 CFR 600.315-08(a). (v) Other vehicle. Other vehicle means any vehicle classified in one of the classes of passenger automobiles listed in 40 CFR 600.315-08(a)(1), or otherwise so classified by the Administrator of the EPA pursuant to 40 CFR 600.315-08(a).