IRS Requests Dealer Registration in Early DecemberDealers who sell “clean vehicles” must sign up with the new IRS Energy Credits Online tool in order to register and report clean vehicle sales that occur on or after January 1, 2024. Reporting clean vehicle sales through this new portal will be necessary for buyers to be eligible for the clean vehicle tax credit.
IRS Energy Credits Online also allows licensed dealers to register and receive advance payments to offset the amount of a tax credit that was applied toward a customer’s purchase price. (Dealers are reminded that advance payments become effective for qualifying vehicles purchased on or after January 1, 2024.) To ensure that all your registration paperwork is in order, the IRS highly recommends that dealers register in early December. Bank account information and tax filing information must be validated, which takes time to review, especially with many businesses registering. Early registration provides the IRS adequate time to review and process a dealership’s information. Dealerships will not be eligible for the advance payments until the IRS approves the required business information. Resources for Dealers Clean Vehicle and Refueling Infrastructure Incentives NADA has hosted multiple webinars to help dealers understand the registration process and the 2024 reporting procedures. Please see the links below for more information.
Clean Energy Authorization Permission Management (managing employee permission levels) See Publication 5902 (12-2023) https://www.irs.gov/pub/irs-pdf/p5902.pdf
New and Used Clean Vehicle Time-of-Sale Reporting See Publication 5867-A (12-2023) https://www.irs.gov/pub/irs-pdf/p5867a.pdf
Information for Clean Vehicle Buyers This IRS consumer checklist and background information will be useful for dealers in educating customers about the credit transfer process.
If you have additional questions you may reach out to James Fackler at MADA. Call (800) 292-1923 or email jfackler@michiganada.org. |
