If you’re a customer who purchased an electronic vehicle in 2024, Form 8936, Clean Vehicle Credit, needs to be filed with your return for you to claim your EV tax credit. Hopefully, the dealership took all the necessary steps to enable this.
Tax season always comes with surprises. The good surprises are refunds larger than we anticipated; the bad ones are smaller refunds or not getting the tax credit you expected. During the season, we all gather the necessary information to file. Do you have everything you need?
We’ve already received several questions from taxpayers this season regarding having the correct information. Our concern is that some electric vehicle (EV) credits might be disallowed if the dealership failed to do its part. Per the IRS, the dealership needs to report all the necessary information for eligible EVs they sell through the IRS Energy Credits Online within three days of the transaction. We’ve suggested to our dealers to make this part of the finance and insurance step of selling the vehicle.
Dealers, Don’t Lose a Customer Over an EV Credit
This should be old news, but dealerships need to register to enable credits for clean vehicle buyers. Yes, dealerships initiate the process. Don’t lose a customer simply because you didn’t register to participate.
It’s easy to take care of and there are many advantages to registering online. This includes applying the payment toward the vehicle at the time of sale, a better process than the cash-for-clunkers program from 2009. If your dealership is not registered, we recommend doing so as soon as possible. There is still time to submit late sales reports, though the IRS will require an explanation for the late filing.
Be sure to read up on clean vehicle credit seller or dealership requirements. If you haven’t done so already, register your dealership accordingly.
Please reach out to Steve Barber or any Schneider Downs advisor for more information.
About Schneider Downs Automotive Industry Group
The Schneider Downs Automotive industry group serves dealers of all sizes, from single-point locations to mega-dealerships. Our members cross departments and meet regularly to ensure efficiency in the services provided to our clients and discuss issues, regulations and trends affecting the automotive industry.
To learn more, visit our Automotive Industry Group page.
