Implementation details for the new and used EV tax credits are still being ironed out by the IRS and Treasury Department. However, the used EV tax credit is now live for qualified sales. Here is what we know now:
A the time of a qualifying sale, the dealership should provide the purchaser with a letter with details about the sale, including vehicle, VIN, battery size, and maximum eligible credit (30% of purchase price or $4,000). This letter should include the name and EIN of the dealership, and the name and tax ID of the purchaser.
This document must include the following declaration: “Under penalties of perjury, I declare that I have examined this report submitted to the IRS pursuant to Revenue Procedure 2022-42 by [insert name of Seller], and to the best of my knowledge and belief I certify that this report is true, correct, and complete.”
A similar report will be due to the IRS on January 15, 2024 but the requirements or form have not yet been released.
Details are available in this public document. Section 5.01 details seller reporting.
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