Part III – Administrative, Procedural, and Miscellaneous Transfer of Credit under Sections 30D and 25E from Taxpayer to Eligible Entity and Updated Requirements for Qualified Manufacturers and Sellers.
Rev. Proc. 2023-33
SECTION 1. PURPOSE
This revenue procedure sets forth the procedures under §§ 30D(g) and 25E(f) of the Internal Revenue Code (Code)1 for the transfer of the clean vehicle credit or previously-owned clean vehicle credit from the taxpayer who elects to transfer such credit to an eligible entity. These procedures will apply to transfers of credits after December 31,2023. These procedures include registration procedures with the Internal Revenue
Service (IRS) for qualified manufacturers and sellers, as well as procedures for dealer registration and the suspension and revocation of that registration. This revenue procedure also establishes a program to make advance payments of credit amounts to registered dealers. In addition, this revenue procedure supersedes sections 5.01 and 6.03 of Rev. Proc. 2022-42, 2022-52 I.R.B. 565, providing new information for the timing
1 Unless otherwise specified, all “Section” or “§” references are to sections of the Code.2 and manner of submission of seller reports, respectively. Finally, this revenue procedure supersedes sections 6.01 and 6.02 of Rev. Proc. 2022-42, providing updated information on submission of written agreements by manufacturers to the IRS to be
considered qualified manufacturers, as well as the method of submission of monthly
reports by qualified manufacturers.
SECTION 2. BACKGROUND
.01 Section 30D, Clean Vehicle Credit
(1) Section 30D was enacted by § 205(a) of the Energy Improvement and
Extension Act of 2008, Division B of Public Law 110-343, 122 Stat. 3765, 3835 (October
3, 2008), to provide a credit for purchasing and placing in service new qualified plug-in
electric drive motor vehicles. Section 30D has been amended several times since its
enactment, most recently by § 13401 of Public Law 117-169, 136 Stat. 1818 (August
16, 2022), commonly known as the Inflation Reduction Act of 2022 (IRA). In general,
the amendments made by § 13401 of the IRA to § 30D apply to vehicles placed in
service after December 31, 2022, except as provided in § 13401(k)(2) through (5) of the
IRA.
(2) Section 30D(a) allows a credit for the taxable year with respect to each new
clean vehicle placed in service by a taxpayer during the taxable year (§ 30D credit).
Section 30D(b) provides a maximum credit of $7,500 per vehicle, consisting of $3,750 if
certain critical minerals requirements are met and $3,750 if certain battery components
requirements are met. These requirements are described in § 30D(e)(1) and (2),
respectively.
(3) Section 30D(g) allows the taxpayer to elect to transfer the § 30D credit in3
certain situations. Specifically, § 30D(g)(1) provides that, subject to such regulations or
other guidance as the Secretary of the Treasury or her delegate (Secretary) determines
necessary, a taxpayer may elect to transfer a § 30D credit with respect to a new clean
vehicle to an eligible entity (transfer election). If the taxpayer who acquires a new clean
vehicle makes a transfer election with respect to such vehicle, the § 30D(a) credit that
would otherwise be allowed to such taxpayer with respect to such vehicle is allowed to
the eligible entity specified in such election (and not the taxpayer). Section 30D(g)(2)
defines an “eligible entity” with respect to the vehicle for which the § 30D credit is
allowed as the dealer that sold such vehicle to the taxpayer and that satisfies the
following four requirements of § 30D(g)(2)(A) through (D) set forth in section 2.01(3)(a)
through (d) of this revenue procedure:
(a) The dealer, subject to § 30D(g)(4), must be registered with the IRS for
purposes of § 30D(g)(2), at such time, and in such form and manner, as the Secretary
prescribes.
(b) The dealer, prior to the transfer election and not later than at the time of sale,
must have disclosed to the taxpayer purchasing such vehicle:
(i) The manufacturer's suggested retail price,
(ii) The value of the § 30D credit allowed and any other incentive available for
the purchase of such vehicle, and
(iii) The amount provided by the dealer to such taxpayer as a condition of the
transfer election.
(c) The dealer, not later than at the time of sale, must have paid the taxpayer
(whether in cash or in the form of a partial payment or down payment for the purchase4
of such vehicle) an amount equal to the § 30D credit otherwise allowable to such
taxpayer.
(d) The dealer, with respect to any incentive otherwise available for the purchase
of a vehicle for which a § 30D credit is allowed under § 30D(a), including any incentive
in the form of a rebate or discount provided by the dealer or manufacturer, must have
ensured that:
(i) The availability or use of such incentive does not limit the ability of a
taxpayer to make a transfer election, and
(ii) Such election does not limit the value or use of such incentive.
(4) Section 30D(g)(3) addresses the timing of the election and provides that any
transfer election cannot be made by the taxpayer any later than the date on which the
vehicle for which the § 30D credit is allowed is purchased.
(5) Section 30D(g)(4) provides that, upon determination that a dealer has failed to
comply with the requirements described in § 30D(g)(2), the dealer’s registration may be
revoked.
(6) Section 30D(g)(5) provides that, with respect to any payment described in
§ 30D(g)(2)(C), such payment is not includible in the gross income of the taxpayer and
is not deductible with respect to the dealer.
(7) Section 30D(g)(6) addresses the application of certain other requirements to
the transfer election and provides that in the case of any transfer election with respect to
any vehicle: (A) the basis reduction and no double benefit requirements of § 30D(f)(1)
and (2) apply to the taxpayer who acquired the vehicle in the same manner as if the
§ 30D credit determined with respect to such vehicle were allowed to such taxpayer;5
(B) the election in § 30D(f)(6) to not take the § 30D credit does not apply; and (C) the
vehicle identification number (VIN) requirement of § 30D(f)(9) is treated as satisfied if
the eligible entity provides the VIN of such vehicle to the IRS in such manner as the
Secretary may provide.
(8) Section 30D(g)(7)(A) authorizes the Secretary to establish a program to make
advance payments to registered dealers in an amount equal to the cumulative amount
of the § 30D credits allowed under § 30D(a) with respect to any vehicles sold by such
entity for which a transfer election has been made. Section 30D(g)(7)(B) details that
rules similar to the rules of § 6417(d)(6) apply for purposes of any excessive payments,
and § 30D(g)(7)(C) provides that, for purposes of 31 U.S.C. 1324, the payments under
§ 30D(g)(7)(A) are treated in the same manner as a refund due from a credit provision
referred to in 31 U.S.C. 1324(b)(2).
(9) Section 30D(g)(8) defines the term “dealer” as a person licensed by a State, the
District of Columbia, the Commonwealth of Puerto Rico, any other territory or
possession of the United States, an Indian tribal government, or any Alaska Native
Corporation (as defined in § 3 of the Alaska Native Claims Settlement Act (43 U.S.C.
1602(m)) to engage in the sale of vehicles. Section 30D(g)(9) defines the term “Indian
tribal government” as the recognized governing body of any Indian or Alaska Native
tribe, band, nation, pueblo, village, community, component band, or component
reservation, individually identified (including parenthetically) in the list published most
recently as of the date of enactment of § 30D(g) (that is, August 16, 2022) pursuant to
§ 104 of the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131).
(10) Section 30D(g)(10) provides that, in the case of any taxpayer who has made a6
transfer election with respect to a new clean vehicle and received a payment from an
eligible entity, if the § 30D credit would otherwise (but for § 30D(g)) not be allowable to
such taxpayer pursuant to the application of the limitation based on modified adjusted
gross income in § 30D(f)(10), the income tax imposed on such taxpayer under chapter 1
of the Code for the taxable year in which such vehicle was placed in service must be
increased by the amount of the payment received by such taxpayer.
(11) Section 13401(k)(4) of the IRA provides that the ability for a taxpayer to elect
to transfer a § 30D credit under § 30D(g) applies to vehicles placed in service after
December 31, 2023.
.02 Section 25E, Previously-Owned Clean Vehicles Credit
(1) Section 13402 of the IRA added § 25E to the Code. Section 25E(a) provides
that, in the case of a qualified buyer who during a taxable year places in service a
previously-owned clean vehicle, an income tax credit is allowed for the taxable year
equal to the lesser of: (1) $4,000, or (2) the amount equal to 30 percent of the sale price
with respect to such vehicle (§ 25E credit).
(2) Section 25E(c)(1) defines “previously-owned clean vehicle”, with respect to a
taxpayer, as a motor vehicle that satisfies the following requirements:
(a) The model year of the motor vehicle is at least 2 years earlier than the
calendar year in which the taxpayer acquires such vehicle.
(b) The original use of the motor vehicle commences with a person other than
the taxpayer.
(c) The motor vehicle is acquired by the taxpayer in a qualified sale.
(d) The motor vehicle:7
(i) Meets the requirements of § 30D(d)(1)(C), (D), (E), (F), and (H) (except for
§ 30D(d)(1)(H)(iv)), or
(ii) Is a motor vehicle that (I) satisfies the requirements under § 30B(b)(3)(A) and
(B), and (II) has a gross vehicle weight rating of less than 14,000 pounds.
(3) Section 25E(c)(2) defines a “qualified sale” as a sale of a motor vehicle:
(i) By a dealer (as defined in § 30D(g)(8)),
(ii) For a sale price that does not exceed $25,000, and
(iii) That is the first transfer since the date of enactment to a qualified buyer other
than the person with whom the original use of such vehicle commenced.
(4) Section 25E(c)(3) defines the term “qualified buyer” for purposes of § 25E as a
taxpayer:
(a) Who is an individual,
(b) Who purchases such vehicle for use and not for resale,
(c) With respect to whom no deduction is allowable with respect to another
taxpayer under § 151, and
(d) Who has not been allowed a § 25E credit for any sale of a motor vehicle
during the 3-year period ending on the date of the sale of the previously-owned clean
vehicle.
(5) Section 25E(c)(4) defines “motor vehicle” and “capacity” to have the meaning
given such terms in § 30D(d)(2) and (4), respectively.
(6) Section 25E(d) provides that no credit is allowed under § 25(a) with respect to
any vehicle unless the taxpayer includes the vehicle identification number of such
vehicle on the return of tax for the taxable year.8
(7) Section 25E(f) provides that rules similar to § 30D(g) apply to the transfer of a
§ 25E credit for previously-owned vehicles (thus, a taxpayer also may elect to transfer a
§ 25E credit). For purposes of this revenue procedure, the program established under
§§ 30D(g)(7)(A) and 25E(f) to make advance payments of amounts of § 30D credits and
§ 25E credits to registered dealers with respect to eligible clean vehicles sold by such
dealers for which a taxpayer makes a transfer election is referred to as the “advance
payment program.”
(8) Section 13402(e)(2) of the IRA provides that the ability of a taxpayer to elect to
transfer a § 25E credit under § 25E(f) applies to vehicles acquired after December 31,
2023.
.03 Revenue Procedure 2022-42.
(1) Revenue Procedure 2022-42, in relevant part, established procedures for
qualified manufacturers to enter into written agreements with the IRS in accordance with
§§ 30D(d)(1)(C) and 30D(d)(3), and procedures for persons selling vehicles to submit
seller reports to the IRS.
(2) Sections 4.01 and 4.03 of Rev. Proc. 2022-42 provide, respectively, that a
manufacturer must enter into a written agreement with the IRS to become a qualified
manufacturer and must submit written reports to the IRS containing required
information.
(3) Section 5.01 of Rev. Proc. 2022-42 provides, in relevant part, that the seller of
a clean vehicle must submit to the Secretary a seller report containing certain
information within fifteen (15) days of the end of the calendar year in which the sale
occurs. Section 6.03 of Rev. Proc. 2022-42 provides that, beginning January 15, 2024,9
seller reports must be filed with the IRS within fifteen days after the end of the calendar
year in which the sale occurs in a format and method that the Secretary provides.
(4) Section 6.01 of Rev. Proc. 2022-42 provides that manufacturers must send
their signed written agreements pursuant to section 4.01 of Rev. Proc. 2022-42 to
[email protected]. Section 6.02 of Rev. Proc. 2022-42
provides, in relevant part, that qualified manufacturers must file written monthly reports
with the IRS by the fifteenth of the month. Qualified manufacturers must send an email
to
[email protected] indicating their intent to submit monthly
reports and the IRS will respond with instructions on how to submit their reporting
information.
.04 Transfer Election and Advance Payment Program Procedural Requirements.
The procedural rules described in this Revenue Procedure are designed in part to
ensure program integrity. In particular, advance payment of the § 30D and § 25E
credits poses unique compliance challenges, since such advance payments are not
subject to the same tax administration procedures that apply to claiming a credit via
return filing. Furthermore, participation in the credit transfer and advance payment
program is optional. The transfer of § 30D and § 25E credits is elective on the part of
the taxpayer, and the eligible entity can decide whether to offer to the taxpayer the
ability to transfer the § 30D and § 25E credits (thereby participating in the advance
payment program). Taxpayers instead may choose to wait and claim a § 30D or § 25E
credit on the taxpayer’s return. Section 30D(g)(1) provides that a taxpayer election to
transfer the § 30D credit is subject to the regulations or other guidance that the
Secretary determines necessary. Section 30D(g)(7) instructs the Secretary to establish10
a program for making advance payments to eligible entities – that is, a program to make
payments to the eligible entity before the eligible entity files its Federal income tax
return for the relevant taxable year. Section 25E(f) provides that, for purposes of § 25E,
rules similar to the rules of § 30D(g) apply. Taken together, these provisions provide
authority for the Secretary to establish the parameters and conditions of the transfer
election and the accompanying advance payment program for those taxpayers and
eligible entities that choose to participate, in furtherance of sound tax administration.
SECTION 3. DEFINITIONS
.01 In General. Terms used in this revenue procedure and not defined in section 3
of this revenue procedure have the same meaning as provided in §§ 30D and 25E, the
proposed regulations thereunder, and the final regulations thereunder (once issued).
.02 IRS Energy Credits Online Portal. For purposes of this revenue procedure, the
“IRS Energy Credits Online Portal” refers to the registration portal that manufacturers
and sellers must use to register as a qualified manufacturer, seller, or registered dealer.
A link to the site will be made available on the IRS website. Any successor portal or
successor site address will be announced and made available on the IRS website.
.03 Seller. For purposes of this revenue procedure, “seller” means, for purposes of
§ 30D, the person who sells any new clean vehicle to the taxpayer, or, for purposes of
§ 25E, the dealer (as defined in § 30D(g)(8)) who sells any previously-owned clean
vehicle to the taxpayer.
SECTION 4. REGISTRATION THROUGH THE ENERGY CREDITS ONLINE PORTAL
.01 Overview of Registration Requirements. This section 4 sets out the registration
requirements with the IRS for various aspects of the Energy Credits Online Portal for11
manufacturers, sellers, and dealers. As a preliminary matter, manufacturers, sellers,
and dealers must all register through the IRS Energy Credits Online Portal, as detailed
in section 4.02 of this revenue procedure. Manufacturers who wish to become qualified
manufacturers must follow the registration procedures in sections 4.02(1) of this
revenue procedure. Sellers who are required to submit seller reports must follow the
registration procedures in section 4.02(2) of this revenue procedure. Sellers who wish
to become registered dealers and participate in the advance payment program must
follow the registration procedures in section 4.02(3) of this revenue procedure. A
dealer, as defined is § 30D(g)(8) and the regulations thereunder, must follow the
registration requirements in sections 4.02(2) and 4.02(3) of this revenue procedure to
become a registered dealer and participate in the advance payment program.
.02 Registration through the IRS Energy Credits Online Portal
(1) Qualified Manufacturer Registration through the IRS Energy Credits Online
Portal. An individual representative of the manufacturer must register through the IRS
Energy Credits Online Portal and provide the required information to request to become
a qualified manufacturer, consistent with section 4.01(1) of Revenue Procedure 2022-
42. The manufacturer’s representative will need to sign in or create an account on
irs.gov in order to verify the manufacturer’s business tax information and register. Help
related to the IRS identity verification process can be found on the sign-in page or at
www.irs.gov/registerhelp. This individual representative of the manufacturer must be
currently authorized to legally bind the manufacturer in these matters. Starting
December 2023, a manufacturer will be able to authorize more than one employee to
make representations on its behalf through the IRS Energy Credits Online Portal.12
(2) Seller Registration through the IRS Energy Credits Online Portal. An individual
representative of the seller must register through the IRS Energy Credits Online Portal
and provide the required information. The seller’s representative will need to sign in or
create an account on irs.gov to verify the seller’s business tax information and register.
Help related to the IRS identity verification process can be found on the sign-in page or
at
www.irs.gov/registerhelp. This individual representative of the seller must be currently
authorized to legally bind the seller in these matters. Starting December 2023, a seller
will be able to authorize more than one employee to make representations on its behalf
through the IRS Energy Credits Online Portal. At the time of registration through the
IRS Energy Credits Online Portal, a seller must provide the information listed in section
4.02(2)(a) through (c) and (f) of this revenue procedure and make certifications listed in
section 4.02(d) and (e) of this revenue procedure:
(a) Seller name, business address, phone number, and email address.
(b) Seller Taxpayer Identification Number (TIN) or Employer Identification
Number (EIN).
(c) Proof of a State, District of Columbia, Indian tribal government, or Alaska
Native Corporation issued license to sell vehicles (for § 25E sellers).
(d) Certification that, in the event a buyer returns a vehicle within 30 days of the
time of sale, the seller will update the seller report.
(e) In the case of a previously-owned clean vehicle, certification that the seller
will provide each taxpayer with the following information:
(i) That the model year of the vehicle is at least two years prior to the calendar
year of sale; and13
(ii) That the transfer is the first transfer of the vehicle since August 16, 2022, to
a person other than the person with whom the original use of such vehicle commenced,
excluding transfers to or between dealers.
(f) Such other information as may be required by the IRS Energy Credits Online
Portal.
(3) Dealer Registration through the IRS Energy Credits Online Portal. An
individual representative of the dealer must register through the IRS Energy Credits
Online Portal to become an eligible entity that can participate in the advance payment
program. The dealer’s representative will need to sign in or create an account on
irs.gov to verify the dealer’s business tax information and register. Help related to the
IRS identity verification process can be found on the sign-in page or at
www.irs.gov/registerhelp. The registration and each certification must be completed by
an individual representative of the dealer who is currently authorized to legally bind the
dealer in these matters. Starting December 2023, a dealer will be able to authorize
more than one employee to make representations on its behalf through the IRS Energy
Credits Online Portal. A dealer must register at least 15 days prior to being able to
receive any advance payments described in section 8 of this revenue procedure. A
dealer may register through the IRS Energy Credits Online Portal at any time after the
publication of this revenue procedure, but will not become an eligible entity until January
1, 2024. The required information and certifications may be updated in guidance
published in the Internal Revenue Bulletin or via the IRS Energy Credits Online Portal.
At the time of registration, a dealer must provide the information listed in section
4.02(3)(a), (b) and (g) of this revenue procedure and make each certification listed in14
section 4.02(3)(c) through (f) of this revenue procedure:
(a) The information listed in section 4.02(2)(a) through (f) of this revenue
procedure.
(b) Bank account information of the dealer, for purposes of receiving electronic
payments, as described in section 8.03 of this revenue procedure. Use of a foreign
bank account is not permitted.
(c) Certification that the dealer will provide each taxpayer with the following
information:
(i) For purposes of the § 30D credit, the manufacturer’s suggested retail price
(MSRP) of the new clean vehicle, or, for purposes of the § 25E credit, the sale price of
the previously-owned clean vehicle;
(ii) The maximum amount of the credit allowable and any other incentive
available for the purchase of such vehicle;
(iii) The amount provided by the dealer to such taxpayer as a condition of the
taxpayer making the transfer election. This amount must equal the amount of the credit
potentially allowable as to the purchase of the vehicle and such amount may be
provided in the form of cash or a down payment or partial payment for the purchase of
the vehicle;
(iv) The modified adjusted gross income (modified AGI) limitations provided in
§§ 30D(f)(10) (in the case of the § 30D credit) or 25E(b)(2) (in the case of the § 25E
credit), as applicable; and
(d) Certification that, no later than the time of sale of the vehicle, the dealer will
make the payment to the taxpayer (whether in cash or in the form of a partial payment15
or down payment for the purchase of such vehicle) in an amount equal to the credit
otherwise allowable to such taxpayer.
(e) Certification that the dealer, with respect to any incentive otherwise available
for the purchase of a vehicle for which a § 30D credit or § 25E credit is allowed,
including any incentive in the form of a rebate or discount provided by the dealer or
manufacturer, ensured that:
(i) The availability or use of such incentive does not limit the ability of a
taxpayer to make a transfer election, and
(ii) Such election does not limit the value or use of such incentive.
(f) Certification that, in the event a buyer returns a vehicle within 30 days of the
time of sale, and the dealer fails to report such return through the IRS Energy Credits
Online Portal, the dealer will have an excessive payment of any advance payment
amount received for the sale of such vehicle.
(g) Such other information as may be required by the IRS Energy Credits Online
Portal.
.03 Reliance. For purposes of the advance payment program, taxpayers and
sellers may rely on information and certifications of a qualified manufacturer (as defined
in § 30D(d)(3)) described in section 4 of Rev. Proc. 2022-42 providing that a vehicle is
eligible for a § 30D credit or a § 25E credit, as applicable. Section 4.03 of this revenue
procedure allows reliance solely with respect to information regarding the vehicle’s
eligibility for the § 30D credit or § 25E credit. For example, such reliance does not apply
to information regarding the taxpayer’s use of such vehicle, whether the taxpayer
satisfies the modified AGI limitations, or whether the taxpayer is a qualified buyer as16
defined in § 25E(c)(3).
.04 IRS Verifications.
(1) At the time of seller registration through the IRS Energy Credits Online Portal
described in section 4.02(2) of this revenue procedure, the IRS will validate the seller’s
business tax information, including the North American Industry Classification System
(NAICS) Code. In the event the seller fails the validation process, the seller will be
notified by the IRS.
(2) At the time of dealer registration through the IRS Energy Credits Online Portal
described in section 4.02(3) of this revenue procedure, the IRS will confirm dealer tax
compliance as well as validate the dealer’s business tax information, including the
NAICS Code and the dealer’s bank account information. In the event the dealer fails
the validation process, the dealer will be notified by the IRS.
.05 IRS Notification Regarding Dealer Registration. The IRS will notify the dealer if
its registration is accepted or rejected after considering the information submitted by the
dealer under section 4.02(3) and the verification checks under section 4.05(2) of this
revenue procedure. If the dealer’s registration is accepted, the IRS will issue a unique
dealer identification number to the dealer, which will be available through the IRS
Energy Credits Online Portal.
.06 Right to Administrative Review if Dealer Registration is Rejected. If a dealer’s
registration is rejected, the dealer will have the opportunity to request administrative
review of the IRS’s determination to the IRS. During the period that the issue is pending,
the dealer cannot participate in the advance payment program.
SECTION 5. TRANSFER ELECTION DISCLOSURE OBLIGATIONS BETWEEN THE17
DEALER AND TAXPAYER
.01 Disclosure to Taxpayer Electing to Transfer the Credit. Not later than the time of
sale, the registered dealer must provide the taxpayer electing to transfer a credit under
§ 30D(g) or § 25E(f) a written disclosure containing the information described in
sections 4.02(2)(e) and 4.02(3)(c) of this revenue procedure, signed under penalty of
perjury by a person currently authorized to bind the dealer in these matters, and a copy
of the seller report described in section 7.03 of this revenue procedure.
.02 Disclosure Obligation of Taxpayer Electing to Transfer the Credit. Not later than
the time of sale, the taxpayer electing to transfer the credit under § 30D(g) or § 25E(f)
must furnish the information listed in sections 5.02(1) through 5.02(3) and 5.02(11) of
this revenue procedure to the registered dealer and make the attestations in sections
5.02(4) through 5.02(10) through the IRS Energy Credits Online Portal under penalty of
perjury. Not later than the time of sale, the registered dealer must upload the
information provided by the electing taxpayer in sections 5.02(1) through 5.02(3) and
5.02(11) of this revenue procedure through the IRS Energy Credits Online Portal. The
information the electing taxpayer must furnish is as follows:
(1) Date of the taxpayer’s transfer election;
(2) The taxpayer’s TIN;
(3) A photocopy of the taxpayer’s valid, government-issued photo identification
document;
(4) An attestation, that either:
(a) The taxpayer’s prior year modified AGI did not exceed the modified AGI
limitations, provided in §§ 30D(f)(10) (in the case of the § 30D credit) or 25E(b)(2) (in18
the case of the § 25E credit), as applicable, or, if not known, to the best of the
taxpayer’s knowledge and belief, the taxpayer’s prior year modified AGI did not exceed
such limitation, or
(b) To the extent of the taxpayer’s knowledge and belief, the taxpayer’s current
year modified AGI will not exceed the modified AGI limitation;
(5) In the case of the § 30D credit, an attestation that the vehicle will be used
predominantly for personal use;
(6) In the case of the § 25E credit, an attestation that the taxpayer is a “qualified
buyer” as defined § 25E(c)(3);
(7) An attestation that the taxpayer will file an income tax return for the taxable
year in which the vehicle is placed in service on or before the due date of the return
(including extensions), reporting the taxpayer’s eligibility for the § 30D or § 25E credit,
as applicable, including the vehicle’s VIN, and the taxpayer’s election to transfer the
credit to the eligible entity, and repaying any credit amounts subject to recapture, if
applicable;
(8) An attestation that the taxpayer is making this election prior to placing the
vehicle in service and that the taxpayer has made no more than two transfer elections
(including the election for which the attestation is being made) during the taxable year;
(9) An attestation that in the event the taxpayer’s modified AGI exceeds the
applicable modified AGI limitations, they will repay the amount received as an addition
to tax for the tax year the vehicle was placed in service.
(10) An attestation that the taxpayer has voluntarily elected to transfer the credit;
and19
(11) Such other information as may be required by the IRS Energy Credits Online
Portal.
SECTION 6. TAXPAYER ELECTION TO TRANSFER CREDIT
.01 Taxpayer Election. A taxpayer may make an election to transfer the credit under
§ 30D or § 25E to a registered dealer no later than the time of sale. A transfer election
will be considered made by a taxpayer upon providing the information described in
section 5.02 of this revenue procedure to the registered dealer.
.02 Two Transfer Elections per year. A taxpayer may make no more than two
transfer elections per taxable year, consisting of either two § 30D credits or one § 30D
credit and one § 25E credit. In the case of a joint return, each individual taxpayer may
make no more than two transfer elections per taxable year.
.03 Amount of Transferred Credit. A taxpayer making a transfer election must
transfer the entire amount of the credit allowable to the taxpayer to the registered
dealer.
SECTION 7. QUALIFIED MANUFACTURER WRITTEN AGREEMENT AND REPORTS
AND SELLER REPORTS
.01 Qualified Manufacturer Written Agreement. Beginning January 1, 2024, to be
considered a qualified manufacturer, manufacturers must have entered into a written
agreement pursuant to section 4.01 of Rev. Proc. 2022-42 through the IRS Energy
Credits Online Portal. The required attestation must be completed by a person currently
authorized to bind the manufacturer in these matters. Manufacturers will not be
considered qualified manufacturers until they have entered into written agreements with
the IRS. Manufacturers who previously registered and filed written agreements under20
the procedures in section 6.01 of Rev. Proc. 2022-42 must enter into new written
agreements through the IRS Energy Credits Online Portal. The procedures for
manufacturers to enter into written agreements prior to January 1, 2024 will remain as
described in section 6.01 of Rev. Proc. 2022-42.
.02 Written Reports by Qualified Manufacturers. Beginning January 1, 2024, qualified
manufacturers must file the monthly written reports described in section 4.02 of Rev.
Proc. 2022-42 through the IRS Energy Credits Online Portal by the fifteenth of the
month following the month to which each monthly written report relates. Qualified
manufacturers may file reports more frequently than once a month. Beginning January
1, 2024, manufacturers who previously registered as qualified manufacturers under the
procedures in section 6.01 of Rev. Proc. 2022-42 must file their written reports through
the IRS Energy Credits Online Portal. The procedures for manufacturers to file written
reports prior to January 1, 2024, will remain as described in section 6.02 of Rev. Proc.
2022-42.
.03 Seller Reports.
(1) Time and Manner of Filing Seller Reports. For sales for which the vehicle is
placed in service by the taxpayer on or after January 1, 2024, a seller must file the seller
report described in section 5.01 of Rev. Proc. 2022-42 through the IRS Energy Credits
Online Portal within 3 calendar days of the date of sale. Whenever feasible, the seller
report should be filed in conjunction with the completion of the sale and at the time the
seller report is provided to the purchaser. A seller may submit seller reports through the
IRS Energy Credits Online Portal prior to January 1, 2024.
(2) Requirement to Furnish Copy of Seller Report to Taxpayer. The seller must21
provide the seller report as well as the confirmation of the submission of the seller report
through the IRS Energy Credits Online Portal to the taxpayer purchasing the vehicle
within 3 calendar days of the submission of the seller report through the IRS Energy
Credits Online Portal.
(3) IRS Rejection of Seller Report. In the event that the information provided in the
seller report does not match the IRS’s records, the IRS may reject the seller report and
notify the seller. In the event the seller report is rejected, a dealer will not be eligible for
an advance payment under section 8 of this revenue procedure. The seller must notify
the buyer within 3 calendar days of the IRS’s rejection of the seller report.
(4) Updating and Rescinding of Seller Reports. In the event the seller wishes to
update or rescind certain information on a seller report for a scrivener’s error or
cancellation of sale, it must do so through the IRS Energy Credits Online Portal as
promptly as possible after the original submission occurred, either through an update of
the original seller report (if within 48 hours of the original submission of the report) or
through submission of a new seller report correcting the prior information. In the event
of a return by the buyer, the seller must file a new seller report noting the return. The
IRS will acknowledge submission of the report of the return. The seller must notify the
buyer within 3 calendar days of updating or rescinding the seller report, and provide the
buyer a copy. The seller must also notify the buyer within 3 calendar days of the IRS’s
rejection of the updated or rescinded report.
SECTION 8. ADVANCE PAYMENT TO REGISTERED DEALERS
.01 Information Required for Advance Payments. To receive advance payments for
each taxpayer’s transfer election, the registered dealer must, at the time of sale of the22
new clean vehicle or previously-owned clean vehicle, as applicable, provide the
vehicle’s VIN, the seller report, and the taxpayer disclosure information in section 5.02
of this revenue procedure through the IRS Energy Credits Online Portal. The
information must be provided by a person currently authorized to bind the registered
dealer in these matters.
.02 Dealer Tax Compliance Checks. In order to participate in the advance payment
program, the dealer must be in dealer tax compliance. Prior to the disbursement of
advance payments as described in this revenue procedure, and on a continuing and
regular basis, the IRS will conduct dealer tax compliance checks to ensure dealers
remain in dealer tax compliance.
.03 Time and Manner of Payments. After the registered dealer provides the
information required in section 8.01 of this revenue procedure through the IRS Energy
Credits Online Portal, and provided the seller report is accepted and the registered
dealer is in dealer tax compliance, an electronic advance payment will be disbursed to
the most recent bank account specified by the registered dealer. No advance payments
will be disbursed by paper checks.
SECTION 9. RECORDKEEPING
.01 Registered Dealer Recordkeeping Obligations. The registered dealer must retain
records for each taxpayer who makes a transfer election in accordance with section 6 of
this revenue procedure for a period of three years after the transfer election is made.
The record for each taxpayer must include the information described in section 5.02 of
this revenue procedure.
.02 Seller Recordkeeping Obligations. The seller must retain records for each seller23
report submitted in accordance with section 7.03 of this revenue procedure for a period
of three years after the report is filed with the IRS Energy Credits Online Portal.
SECTION 10. SUSPENSION OF REGISTERED DEALER ELIGIBILITY
.01 Suspension of Eligibility. The IRS may suspend a registered dealer’s eligibility to
participate in the advance payment program for any of the following reasons:
(1) The IRS determines that the registered dealer provided inaccurate information
to the taxpayer regarding the vehicle’s eligibility or the taxpayer’s eligibility for the
advance payment program;
(2) The IRS determines that the registered dealer provided inaccurate information
to the IRS regarding the vehicle’s eligibility or taxpayer’s eligibility for the advance
payment program;
(3) The IRS determines that the registered dealer provided inaccurate information
to the IRS regarding its eligibility for the advance payment program;
(4) The registered dealer fails to satisfy the dealer tax compliance requirement in
section 8.02 of this revenue procedure;
(5) The IRS determines that the bank account information that the dealer provided
through the IRS Energy Credits Online Portal is not valid;
(6) The dealer fails to report the return of a vehicle through the IRS Energy Credits
Online Portal as required in section 4.04(f) of this revenue procedure;
(7) The IRS determines it is necessary to suspend the registered dealer’s
registration to prevent abuse of the advance payment program.
.02 Notification by the IRS to the Dealer. If the IRS determines a registered dealer’s
eligibility for the advance payment program should be suspended pursuant to section24
10.01 of this revenue procedure, the IRS will notify the registered dealer of such
determination.
.03 Correction. The registered dealer will be notified of a suspension from the
advance payment program as well as the reason for the suspension. The registered
dealer will be given an opportunity to correct any errors that caused its suspension. The
registered dealer cannot participate in the advance payment program from the moment
it is notified of the suspension, unless and until the suspension is lifted.
.04 Revocation of Dealer’s Registration. If the registered dealer fails to correct the
errors that caused the suspension from the advance payment program within a year of
the suspension, the registered dealer’s registration will be revoked, and the procedures
in section 11 of this revenue procedure will apply.
SECTION 11. REVOCATION OF REGISTERED DEALER ELIGIBILITY AND RE-
REGISTRATION
.01 Revocation of Dealer Eligibility. The IRS may revoke a dealer’s registration to
receive credits transferred under §§ 30D(g) or 25E(f) and be eligible for advance
payments of such credits for any of the following reasons:
(1) The registered dealer fails to comply with any of the registration requirements in
section 4 of this revenue procedure;
(2) The registered dealer fails to satisfy the dealer tax compliance requirement in
section 8.02 of this revenue procedure;
(3) The registered dealer loses its license to sell vehicles;
(4) The IRS determines that the registered dealer provided inaccurate information
to the taxpayer regarding the vehicle eligibility or the taxpayer’s eligibility for the25
advance payment program, in circumstances where the IRS determines that revocation,
rather than suspension, as referenced in section 10.01(1) of this revenue procedure, is
appropriate;
(5) The IRS determines that the registered dealer provided inaccurate information
to the IRS regarding vehicle eligibility or taxpayer eligibility for the advance payment
program, in circumstances where the IRS determines that revocation, rather than
suspension, as referenced in section 10.01(2) of this revenue procedure, is appropriate;
(6) The registered dealer fails to retain records for each taxpayer who makes a
transfer election for a period of three years;
(7) The registered dealer’s registration has been suspended three times in the
preceding year in accordance with section 10 of this revenue procedure.
.02 Notification by the IRS to the Dealer. If the IRS determines a registered dealer’s
eligibility for the advance payment program should be revoked, the IRS will notify the
registered dealer within 30 days of such determination.
.03 Right to Administrative Review. If a registered dealer is notified of the revocation
of its eligibility for the advance payment program, it will have the opportunity to
administrative review of the IRS’s determination. During the period that the issue is
pending, the registered dealer cannot participate in the advance payment program.
Once the IRS makes a final determination, a registered dealer’s registration will either
be confirmed as revoked, fully reinstated, or reinstated under conditions as determined
by the IRS.
.04 Re-Registration of Dealer. No earlier than one calendar year after the date of the
notification described in section 11.02 of this revenue procedure revoking a registered26
dealer’s registration, a registered dealer may apply to register again through the IRS
Energy Credits Online Portal, as described in section 4.03(c) of this revenue procedure.
.05 Non Eligibility for Re-Registration. After a registered dealer’s registration has
been revoked, including any final IRS determinations following the dealer’s request for
an administrative review of the revocation, if applicable, on three separate occasions,
the registered dealer will be permanently barred from re-registering with the IRS and
participating in the advance payment program.
SECTION 12. EFFECT ON OTHER DOCUMENTS
The requirements of sections 7.01 and 7.02 of this revenue procedure regarding
filing a written agreement to be considered a qualified manufacturer and filing monthly
written reports through the IRS Energy Credits Online Portal supersede the timing and
manner of filing requirements in sections 6.01 and 6.02 of Rev. Proc. 2022-42. The
requirements of section 7.03(1) of this revenue procedure regarding submitting seller
reports through the IRS Energy Credits Online Portal supersede the timing and manner
of filing requirements in sections 5.01 and 6.03 of Rev. Proc. 2022-42.
SECTION 13. PAPERWORK REDUCTION ACT
The collection of information contained in this revenue procedure has been
submitted to the Office of Management and Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under control number 1545-2311.
An agency may not conduct or sponsor, and a person is not required to respond to, a
collection of information unless the collection of information displays a valid OMB
control number.
The collections of information in this revenue procedure are in sections 4.02, 5.01,27
5.02, 7.01, 7.02, 7.03(1), 8.01, 9.01, and 9.02. This information is collected and
retained to ensure that dealers and sellers properly register with the IRS, properly
submit records to claim the transfer election, and properly retain records. This
information will be used to determine whether the dealer is eligible for the claimed
advance payment election. The collection of information is voluntary to obtain a benefit.
The likely respondents are corporations and partnerships.
The estimated total annual reporting burden is 296,688 hours.
The estimated annual burden per respondent is one hour to complete the dealer
registration, as required under this revenue procedure, and the estimated number of
respondents is 52,000. The estimated annual burden per respondent is .25 hours to
complete the advanced payment uploading of information, as required under this
revenue procedure and the estimated number of respondents is 978,750. The estimated
annual frequency of responses is 1,030,750.
Books or records relating to a collection of information must be retained as long as
their contents may become material in the administration of any internal revenue law.
Generally, tax returns and tax return information are confidential, as required by § 6103.
SECTION 14. DRAFTING INFORMATION
The principal author of this revenue procedure is the Office of Associate Chief
Counsel (Passthroughs & Special Industries). However, other personnel from the
Department of the Treasury and the IRS participated in its development. For further
information regarding this revenue procedure, call the energy security guidance contact
number at (202) 317-5254 (not a toll-free call).
www.irs.gov
