Clean vehicle credits can help car buyers pay less at the dealership
RS Tax Tip 2023-123, Nov. 15, 2023
Taxpayers who buy a qualifying new or used clean vehicle may be able to transfer their tax credits to the dealer in exchange for a financial benefit – such as a lower cost – starting Jan. 1, 2024.
Benefits of transferring the credit
Taxpayers can now claim tax credits for new and used clean vehicles they buy during the tax year and, starting Jan. 1, 2024, can transfer that credit to the dealership. This means that the taxpayer who is buying the vehicle can exchange their credit for a financial benefit such as reduced final cost. The financial benefit is equal to the amount of the credit, whether in cash, a partial payment or a down payment.
New information about the clean vehicle credit
The IRS recently issued proposed regulations, Revenue Procedure 2023-33 and frequently asked questions that cover:
- How taxpayers can transfer clean vehicle credits to eligible dealers.
- How dealers can register with IRS Energy Credits Online to receive advance payments.
- How dealers can lose their registration if they don’t comply with the program’s requirements.
- New details on the timing and submission of seller reports.
- Updated information for manufacturers on becoming qualified and how qualified manufacturers can submit monthly reports.
Dealers and sellers register by Dec. 1
Dealers and sellers of clean vehicles should register their organizations immediately using the Energy Credits Online tool. The IRS strongly urges sellers of clean vehicles to register by Dec. 1, 2023, to receive advance payments starting Jan. 1, 2024.
For updated clean vehicle credit frequently asked questions related to new, previously owned and qualified commercial clean vehicles, see Fact Sheet 2023-22PDF.
REF:Irs.gov
Don’t Miss Out on the Employee Retention Credit
Don’t Miss Out on the Employee Retention Credit Your government wants your small business to survive (and likely thrive, too). Since COVID-19 struck, the government has created free and/or easy money in the form of tax credits and loans that are forgiven....
“Deduct 100 Percent of Your Business Meals under New Rules”
Deduct 100 Percent of Your Business Meals under New RulesNow, thanks to a new law enacted December 27, 2020, new IRS regulations, and a new IRS notice (yep, all three are new), you have fresh opportunities for writing off 100 percent of your business meals. For 2021...
Tax Code Offset Game
2020 Last-Minute Year-End Tax Strategies for Tax Code OffsetWhen you take advantage of the tax code’s offset game, your stock market portfolio can represent a little gold mine of opportunities to reduce your 2020 income taxes. The tax code contains the basic rules...
Starting a New Business? Get Up to $100,000 in Tax-Free Money
Starting a New Business? Get Up to $100,000 in Tax-Free MoneyYou likely already know that the employee retention credit (ERC) is a good deal—if you qualify. Now, thanks to the recently enacted American Rescue Plan Act of 2021 (ARPA), you can qualify for up to...
Remember to consider your Section 199A deduction in your year-end tax planning.
Remember to consider your Section 199A deduction in your year-end tax planning.Remember to consider your Section 199A deduction in your year-end tax planning. If you don’t, you could end up with a big fat $0 for your deduction amount. We’ll review three year-end moves...
Deducting Business Expenses
Deducting Business ExpensesBusiness expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business operates to make a profit. What Can I Deduct? Cost of Goods Sold Capital Expenses Personal versus Business Expenses...