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:
❯ Qualied manufacturers submit
periodic reports on Energy Credits
Online with data on eligible vehicles.
• Dealers/sellers will not be able
to sell vehicles for which a buyer
intends to claim a clean vehicle
credit until qualied manufacturers
have submitted the VIN to the IRS
as eligible.
❯ Energy Credits Online validates the
eligibility of each vehicle according
to the Ination 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.
Dealers/Sellers:
❯ 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.
❯ 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-ling
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.
Buyers:
❯ 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.
❯ Buyers can conrm the clean vehicle
they are purchasing is eligible for the
credit through receipt of a valid time
of sale report and conrmation that
Energy Credits Online has accepted
the submission for their clean
vehicle purchase. Buyers
must still meet certain income and
other requirements.
❯ When ling 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 (10-2023) Catalog Number 94368T Department of the Treasury Internal Revenue Service www.irs.gov
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