Clean vehicle credit seller or dealer requirements

 

Sellers of new clean vehicles and dealers of used clean vehicles must meet reporting requirements for those vehicles to be eligible for a credit under IRC 30D and 25E.

Who qualifies

Sellers of vehicles that are eligible for a new clean vehicle credit under IRC 30D must furnish a report to the buyer at the time of sale and also to the IRS for those vehicles to be eligible for a credit under IRC 30D. This includes manufacturers who sell directly to customers.

Dealers who sell vehicles eligible for a used (previously owned) vehicle credit under IRC 25E must furnish a report to the buyer at the time of sale and also to IRS for those vehicles to be eligible for a credit under IRC 25E. A dealer is a person licensed to sell motor vehicles by a state, the District of Columbia, an Indian tribal government, or any Alaska Native Corporation.

Electric vehicles (EVs) and fuel cell vehicles (FCVs) eligible for tax credits include:

Report required information

For a buyer to receive a tax credit, sellers and dealers must report clean vehicle credit information to the buyer at the time of sale and to the IRS.

Report 2024 and later information to the IRS

For eligible clean vehicles placed in service on or after January 1, 2024, you must submit all reports through IRS Energy Credits Online within 3 calendar days of the date of sale. You must also provide the buyer with a copy of the accepted seller report submitted to IRS Energy Credits Online within 3 calendar days of the date of submission.

As IRS Energy Credits Online provides real-time confirmation of a vehicle's eligibility using VINs provided by manufacturers, we strongly recommend this submission occurs prior to finalizing a sale and when the buyer places the vehicle in service. However, you may submit the seller report to IRS Energy Credits Online within 3 calendar days of the time of sale.

Your first step in reporting is to register your business as a vehicle seller or dealer on IRS Energy Credits.

Register your business for clean vehicle credits

Report 2023 information to the IRS

Rev. Proc. 2022-42, Section 6.03 provides that sellers must file reports within fifteen days after the end of the calendar year (i.e., January 15, 2024). The IRS is extending the due date sellers have to provide these reports until February 15, 2024. As a result, for vehicles placed in service in calendar year 2023, you must submit required information about a qualifying clean vehicle sale to the IRS by February 15, 2024.

  • Submit copies of your seller reports provided to eligible buyers. See below for guidance on faxing reports to the IRS.
  • The IRS preferred format for these submissions is an excel spreadsheet containing all required data from all seller reports a seller or dealer prepared in calendar year 2023.
  • Sellers or dealers may also submit individual seller report copies of the Form 15400 or equivalent forms containing all required data the seller/dealer used in calendar year 2023. Sellers and dealers that used reasonable alternatives to Form 15400 in providing the required seller reports to buyers do not need to prepare the information in the Form 15400 format.

To send 2023 time-of-sale reports, fax directly to 855-755-7437. (You must submit time-of-sale reports for sales in 2024 or later through the Energy Credits Online portal.)

The fax coversheet should include the following:

  • Subject: 2023 Clean Vehicle Time-of-Sale Report(s)
  • Sender's name, title, phone number, address
  • Date
  • Number of pages faxed (including cover sheet)

Do not include sensitive information on the cover sheet, such as Employer Identification Number or Social Security number.

Report information to buyers

For vehicles placed in service in 2024 or later, providing buyers a copy of the seller report submitted to IRS Energy Credits Online and the confirmation that the IRS accepted the submission meets your reporting obligation.

For vehicles placed in service in 2023, you needed to provide the following information to buyers at the time of sale:

  • 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."

Find more details in Rev. Proc. 2022-42, Submission of Information to IRS by Qualified Manufacturers of Clean Vehicles, Previously-Owned Clean Vehicles, and Commercial Clean Vehicles; Submission of Information to IRS by Sellers of Clean Vehicles and Previously-Owned Clean Vehicles and Rev. Proc. 2023-33, Transfer of Credit under Sections 30D and 25E from Taxpayer to Eligible Entity and Updated Requirements for Qualified Manufacturers and Sellers.

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