Dealers and sellers of clean vehicles now have the opportunity to leverage the IRS’s latest online tool. This tool enables them to register and facilitate their customers in claiming or transferring credits associated with purchasing a new or pre-owned clean vehicle. Commencing in 2024, taxpayers meeting specified criteria can claim their clean vehicle credit right at the point of sale and transfer it to eligible entities, such as dealerships.
Clean vehicle sellers and licensed dealers must utilize the designated online tool to access these credits. This tool streamlines the process of claiming or transferring credits on behalf of the buyer. It is essential to note that once the credit is successfully transferred, it must be reconciled on the tax return filed for the corresponding year the transfer occurs. This innovative approach aims to enhance the efficiency of clean vehicle credit transactions within the specified tax framework.