New and Previously Owned

New and Previously Owned

Clean Vehicle Credit Time of

Sale Reporting with Energy

Credits Online

The information below

provides a guide for Time

of Sale Reporting for

qualified manufacturers,

dealers, sellers, and

buyers using Energy

Credits Online.

Qualified manufacturers:

Dealers/Sellers:

Buyers:

❯ Qualified manufacturers submit

periodic reports on Energy Credits

Online with data on eligible vehicles.

❯ Each time an eligible vehicle is sold,

the Dealer/Seller, with the Buyer

present, completes a Time of Sale

Report (also called a seller report) on

Energy Credits Online.

❯ Buyers provide information about

themselves to the dealer/seller for

the time of sale report, including

SSN/TIN information that will be

sent to the IRS through Energy

Credits Online.

• Dealers/sellers will not be able

to sell vehicles for which a buyer

intends to claim a clean vehicle

credit until qualified manufacturers

have submitted the VIN to the IRS

as eligible.

❯ Energy Credits Online validates the

eligibility of each vehicle according

to the Inflation Reduction Act rules.

❯ VINs are removed from the list of

eligible vehicles once a time-of-sale

report (also known as seller report) is

received from a dealer/seller.

❯ Beginning on Jan. 1, 2024, buyers

can elect to transfer their expected

credit to a Registered Dealer, who

will receive Advance Payments from

the IRS in exchange for discounting

the price of the vehicle. Buyers are

limited to two transfers per year for

their SSN/TIN.

❯ Energy Credits Online ensures

the vehicle sold was eligible and

records the taxpayer it was sold to

and the credit amount for at-filing

reconciliation.

• A successfully submitted time of

sale report indicates the vehicle’s

VIN has been reported by the

manufacturer as eligible for the

credit to the IRS, provided other

applicable requirements are met.

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❯ Buyers can confirm the clean vehicle

they are purchasing is eligible for the

credit through receipt of a valid time

of sale report and confirmation that

Energy Credits Online has accepted

the submission for their clean

vehicle purchase. Buyers

must still meet certain income and

other requirements.

❯ When filing their annual tax return,

the taxpayer must complete Form

8936 and 8936 Schedule A to claim

the tax credit or verify a transferred

credit for the qualifying purchase of

a vehicle. Only the taxpayer whose

SSN/TIN is listed

on the time-of-sale report can claim

the credit.

❯ The IRS will process the tax return

and integrate with Energy Credits

Online to substantiate and validate

claims.

Publication 5864 (Rev. 9-2024) Catalog Number 94368T Department of the Treasury Internal Revenue Service www.irs.gov