ENERGY CREDITS ONLINE TOOL ALLOWS SELLERS OF CLEAN VEHICLES TO REGISTER FOR TIME-OF-SALE REPORTING, ADVANCE CREDIT PAYMENTS:
Note: the credit can only be obtained for vehicles purchased through a certified auto dealer. Private sales of vehicles do not qualify for the energy credits.
Clean vehicle dealers can now register using the new IRS Energy Credits Online tool, known as IRS Energy Credits Online. The new tool enables dealers and sellers of clean vehicles to complete the entire process online and receive advance payments within 72 hours. The tool will generate a time-of-sale report that the taxpayer will use when filing their federal tax return to claim or report the credit. Beginning in 2024, clean vehicle sellers and licensed dealers must use the tool for their customers to successfully claim or transfer the new or previously owned clean vehicle credit for vehicles placed in service on Jan.1, 2024, or later.
Known as IRS Energy Credits Online or IRS ECO, this free electronic service is secure, accurate and requires no special software. Though available to any business of any size, IRS Energy Credit Online may be especially helpful to any small business that currently sells clean vehicles.
The IRS's new Energy Credits Online tool will allow dealers and sellers of clean vehicles to complete the entire process online and receive advance payments within 72 hours. The tool will generate a Time of Sale report that the taxpayer will use when filing their federal tax return to claim or report the credit.
"This special online tool is designed to help dealers and sellers navigate this important new Clean Vehicle Credit and help taxpayers at tax time," said IRS Commissioner Danny Werfel. "Online tools like this are part of the larger effort taking place at the IRS with Inflation Reduction Act funding to make improvements and better serve both taxpayers and businesses."
Beginning in 2024, clean vehicle sellers and licensed dealers must use the tool for their customers to successfully claim or transfer the new or previously owned clean vehicle credit for vehicles placed in service Jan.1, 2024 or later.
