What’s new: The Internal Revenue Service (IRS) launched IRS Energy Credits Online, a registration portal for sellers of new and previously owned clean vehicles eligible for federal tax credits.
Time of sales reports: Registering on IRS Energy Credits Online will enable sellers to create electronic clean vehicle sales reports. (see IRS FAQ Topic I). Sales reports must be provided in writing to eligible clean vehicle purchasers (see IRS FAQ Topic J).
Credit transfers: Registering on IRS Energy Credits Online will also facilitate the advance payment of tax credits for eligible clean vehicle sales that occur after Dec. 31, 2023 (see IRS FAQ Topic H). By transferring federal tax credits to the point of sale, buyer-taxpayers will be able to realize the value of those credits “up front” as reductions in the price of their eligible clean vehicle purchases.
Go deeper: Guidance on clean vehicle sales reporting and the credit transfer/advance payment process is set out in a new IRS Revenue Procedure and IRS Clean Vehicle Credit FAQs, both of which are available on NADA’s Clean Vehicle and Refueling Infrastructure Incentive webpage.
Questions? Contact regulatoryaffairs@nada.org.