Energy Credit Online Tool Now Available to Sellers, IR-2023-202

The IRS has announced that enrollment to the IRS Energy Credit Online tool is now open to the sellers of clean vehicles. The Energy Credits tool is available free of cost and will enable dealers and sellers of clean vehicles to complete the entire process online and receive advance payments within 72 hours among other benefits. “This special onlinetool is designed to help dealers and sellers navigate this important new Clean Vehicle Credit and help taxpayers at tax time,” said IRS Commissioner Danny Werfel.

The Energy Credits Online Tool will generate a Time of Sale report that the taxpayer can use when filing their federal tax return to claim or report the credit. The IRS further stated that starting December, 2023 dealers and sellers will be able to authorize more than one employee to submit Time of Sale reports and advance payment requests. As of 2024,use of this tool will be made mandatory for clean vehicles sellers and licensed dealers to successfully claim or transfer the new or previously owned clean vehicle credit for vehicles placed in service January 1, 2024 or later.