- On or around November 25, 2024, the Energy Credits Online (ECO) tool will temporarily accept time-of-sale reports for any 2024 transaction of a new or previously owned clean vehicles
- The IRS announcement is welcome news to dealers who have missed timely submittals
- The time-of-sale reports must be submitted by December 10, 2024
Background
Beginning on January 1, 2024, dealers and sellers of new or used vehicles eligible for clean vehicle credits under Internal Revenue Code sections 30D and 25E are generally required to submit time-of-sale reports to the IRS within 3 calendar days from the date of sale. However, the IRS does recommend submitting the information before the sale closes. Submissions are done through the IRS ECO tool to obtain an instant confirmation of a vehicle’s eligibility for the credit based on the vehicle's identification number (VIN).
Temporary Relief Granted
Dealers have been granted a short window by the IRS to file required time-of-sale reports that were not submitted within the 3-day timeframe. The IRS has provided that on or around November 25, 2024, dealers will be able to submit such time-of-sale reports until December 10, 2024. Going forward, dealers who cannot submit a time-of-sale report within the 3-day window, should submit as soon as possible and provide an explanation as to the reasons a timely report could not be submitted. Such submissions are subject to an IRS review.
Additionally, eligible vehicles that were never put into service for which a time-of-sale report was filed or if such report was filed for a leased vehicle (which are ineligible,) dealers should submit cancellation requests before November 25, 2024. In cases where cancellation requests are filed for eligible vehicles never placed into service, a new time-of-sale report submission can be made after the IRS reviews and accepts the cancellation request.
In instances where a buyer elects to transfer the credit to the seller (e.g., as a down payment on the purchase) and the time-of-sale report is submitted beyond the 3-day window, the IRS may request additional information before processing the credit to determine if the buyer made the election on or before the sale.
If you have any questions, professionals in our Dealerships practice are available to assist you.