Tax Tip 2023-123: Clean vehicle credits can help car buyers pay less at the dealership

IRS Tax Tips November 15, 2023
Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams/Consumer Alerts The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News IRS Resources Contact Your Local IRS Office Filing Your Taxes Forms & Instructions Frequently Asked Questions Taxpayer Advocate Service Where to File IRS Social Media	Issue Number: Tax Tip 2023-123 Clean vehicle credits can help car buyers pay less at the dealership Taxpayers who buy a qualifying new or used clean vehicle may be able to transfer their tax credits to the dealer in exchange for a financial benefit – such as a lower cost – starting Jan. 1, 2024. Benefits of transferring the credit Taxpayers can now claim tax credits for new and used clean vehicles they buy during the tax year and, starting Jan. 1, 2024, can transfer that credit to the dealership. This means that the taxpayer who is buying the vehicle can exchange their credit for a financial benefit such as reduced final cost. The financial benefit is equal to the amount of the credit, whether in cash, a partial payment or a down payment. New information about the clean vehicle credit The IRS recently issued proposed regulations, Revenue Procedure 2023-33 and frequently asked questions that cover: How taxpayers can transfer clean vehicle credits to eligible dealers. How dealers can register with IRS Energy Credits Online to receive advance payments. How dealers can lose their registration if they don't comply with the program's requirements. New details on the timing and submission of seller reports. Updated information for manufacturers on becoming qualified and how qualified manufacturers can submit monthly reports. Dealers and sellers register by December 1 Dealers and sellers of clean vehicles should register their organizations immediately using the Energy Credits Online tool. The IRS strongly urges sellers of clean vehicles to register by Dec. 1, 2023, to receive advance payments starting Jan. 1, 2024. For updated clean vehicle credit frequently asked questions related to new, previously owned and qualified commercial clean vehicles, see Fact Sheet 2023-22.   More information: Clean Vehicle Credits webpage on IRS.gov   Back to top           Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.

 

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