Dealerships Given the Green Light to Register Clean Vehicle Sales Information
In a significant leap forward for the electric vehicle (EV) market, the Internal Revenue Service (IRS) has unveiled the much-anticipated portal, known as IRS Energy Credits Online (IRS ECO). This digital platform promises to revolutionize the way licensed car dealerships handle the electric vehicle tax credit.
Under the new system, car dealerships can swiftly register sales information for eligible clean vehicles, paving the way for a hassle-free process to confirm a consumer’s eligibility for a tax credit of up to $7,500, as outlined in Internal Revenue Code Section 30D. This monumental incentive, which was restructured in August 2022 under the Inflation Reduction Act, is poised to turbocharge the EV market.
What sets IRS ECO apart is its ability to facilitate the smooth transfer of the tax credit from consumers to the dealerships where the EVs are purchased. Laurel Blatchford, Chief Implementation Officer for the Inflation Reduction Act at the U.S. Department of the Treasury, highlighted the portal’s game-changing potential. She stated that the fully electronic process would expedite payments to dealers while integrating crucial program integrity measures into dealer registration and time-of-sale report submission.
An Instant Boost for Dealers
One of the most exciting features of this system is the Section 30D transfer method, allowing buyers to bypass the typical waiting period for IRS tax credit payments. Instead, consumers can opt to transfer the credit to the dealer, resulting in an immediate reduction in the vehicle’s purchase price. Research has shown that this “point of sale” rebate is a hit with consumers, who prefer it to the year-long wait associated with traditional tax returns.
