The Internal Revenue Service (IRS) is calling on sellers and dealers of clean vehicles to register their businesses on the Energy Credits Online tool as soon as possible. With a deadline set for Dec. 1, 2023, those who register will be eligible to receive advance payments starting from Jan. 1, 2024.
Energy Credits Online, also known as IRS ECO, is a secure and accurate electronic service that requires no special software. While the tool is accessible to businesses of any size, it’s particularly beneficial for small businesses selling clean vehicles.
Registration for the online enrollment process should begin immediately. By registering with Energy Credits Online by the early December deadline, dealers and sellers can ensure timely submission of time-of-sale reports and receipt of advance payments. The tool also generates a time-of-sale report that taxpayers can use when filing their federal tax return to claim or report the credit.
Starting in 2024, clean vehicle sellers and licensed dealers must use this tool for their customers to successfully claim or transfer the new or previously owned clean vehicle credit for vehicles placed in service on or after Jan.1, 2024.
To participate and take advantage of the new and used clean vehicle credits available to taxpayers, a dealer must register through the IRS Energy Credits Online tool. Initially, only one individual representative of the dealer or seller can complete the registration through IRS Energy Credits Online. This representative must be currently authorized to legally bind the dealer or seller.
Future enhancements of the tool will allow dealers and sellers to authorize more than one employee to submit time-of-sale reports and advance payment requests. Authorizing additional employees is a straightforward update for registered dealers.
More information about clean vehicle credits and tax benefits from the Inflation Reduction Act is available on the official IRS website. This reminder from the IRS signifies an important step toward promoting the sale of clean vehicles and encouraging businesses to take advantage of the available tax benefits.
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