The IRS has issued a new User Guide with step-by-step instructions explaining how dealers who are registered to use the Energy Credits Online (ECO) portal may create time of sale reports for clean vehicle sales. The IRS also issued updated dealer registration FAQs, important background information for consumers about transferring Section 30D (new) or Section 25E (used) clean vehicle tax credits, and a checklist of information buyers must provide to eligible dealers for clean vehicle sales involving the transfer of Section 30D or 25E credits. Dealers will be able to submit vehicle time of sale reports on Jan. 1, 2024. Per the IRS, by Dec. 26, dealers will also be able to authorize additional users for the ECO portal and a User Guide will be available at this link.
Why it matters: Beginning January 1, 2024, customers will be able to transfer their federal new and used clean vehicle tax credits to dealerships registered through the ECO portal at the time of sale. As of January 1st, all dealers — regardless of whether the customer elects to transfer a credit — must submit time of sale reports for clean vehicle transactions through the ECO portal. Dealers must be registered with the ECO portal to submit these time of sales reports.
In addition, when registering, dealers are required to designate someone to serve as a “Super User” to manage the use of the ECO portal. The Super User will be able to delegate permission for other employees to use the ECO portal to effectuate a customer’s credit transfer election and submit time of sale reports.
Seller Reports are necessary for clean vehicle sales involving Section 25E and Section 30D credits and must be provided to both buyers and the IRS at the time of sale. Beginning January 1, all seller reports must be prepared and submitted through the ECO portal. Consequently, if your dealership has not yet registered, you should do so immediately even if you do not intend to accept credit transfers.
The updated FAQs provide answers for many of your registration questions and provide instructions for how to register multi-rooftop dealerships that file taxes on a partnership or S-corporation return and multi-rooftop dealerships that file on a consolidated return (Form 1120).
The consumer checklist and background information from the IRS will be useful for dealers in educating customers about the credit transfer process.