2023 Clean Vehicle Tax Credit Required Dealer Reports

Beginning in 2023, dealers who sell vehicles eligible for a new or used clean vehicle credit must furnish a report to the buyer at the time of sale for those vehicles to be eligible for a credit.

The Treasury/IRS just published a list of qualifying vehicles that can be found here.

This is not an exhaustive list of all qualifying vehicles. The list will be updated as manufacturers submit their qualifying models. Please verify the tax credit eligibility with your manufacturer if you do not see a vehicle on the list that may qualify. Again, this is for used vehicles only.

IMPORTANT NOTE - There is a reporting requirement for dealers in order for a customer to get the credit. NADA is pushing the Treasury/IRS for an “official” report form or online portal.  In the meantime, we have included template forms created by NADA for dealer use. The reporting requirement went into effect 1/1/2023. Have your dealership attorney review the contents of these model forms to ensure dealer assumes no liability for failure of customer to secure specific tax credit amount. As of now, the dealer reporting is due in January of 2024.

Template 1

Template 2

The reports must contain the following information:

• Seller/Dealer name and taxpayer ID number
• Buyer's name and taxpayer ID number
• Maximum credit allowable under IRC 30D for new vehicles or IRC 25E for previously owned vehicles
• Vehicle identification number (VIN), unless the vehicle is not assigned one
• Battery capacity
• Date of sale
• Sale price
• For new vehicles, verification that the buyer is the original user
• Each report must include a declaration of accuracy signed by a representative of your business with binding authority. The declaration must read: "Under penalties of perjury, I declare that I have examined this report submitted to the IRS pursuant to Revenue Procedure 2022-42 by [insert name of Seller], and to the best of my knowledge and belief I certify that this report is true, correct, and complete.” 

You must report clean vehicle credit information to buyers at the time of sale. Submit the same information to the IRS by January 15 of the year following the purchase – the first IRS reports are due by January 15, 2024.

A purchaser must also meet the following requirements when purchasing a used vehicle eligible for EV tax credit:

• Be an individual who bought the vehicle for use and not for resale
• Not be the original owner
• Not be claimed as a dependent on another person’s tax return
• Not have claimed another used clean vehicle credit in the 3 years before the purchase date In addition, your modified adjusted gross income (AGI) may not exceed:
• $150,000 for married filing jointly or a surviving spouse
• $112,500 for heads of households
• $75,000 for all other filers

The IRS has also released a detailed FAQ Fact Sheet that provides information on the new, used, and commercial clean vehicle credits. 

If you have any questions, don't hesitate to contact me directly at dbennett@nhada.com or 603-224-2369.

Article Sources:
O'Connor & Drew, P.C.
National Automobile Dealers Association
Maryland Automobile Dealers Association