Whether you currently sell (or plan to sell) EV’s or not, there are steps you can take now to be eligible to claim credits in the future. Our auto dealer team recommends registering the dealership and sales people on the new Energy Credits Online (ECO) Portal. The new EV credit transfer program started January 1, 2024, and the deadline for submitting 2023 claims is January 15, 2024.
EV Credit Transfer Over and Benefits
The electric vehicle (EV) credit transfer program allows consumers to transfer their new clean vehicle credit of up to $7,500 to car dealers, reducing the purchase price of new and previously owned clean vehicles at the time of sale.
Even if your dealership does not currently stock new EV’s, you may receive trades of used EV’s (BEV or PHEV) which qualify for the used credit and having the extra cash from the credit may help put a deal together for the right buyer meeting the qualifications for the credit.
Energy Credits Online (ECO) Portal
In order to receive the credit, dealerships must be registered through the portal. Once the dealership is registered on the ECO portal, deal information can be submitted on the portal. Once approved, the IRS will wire funds directly to the dealership bank account, similar to dealer cash incentives, within a few days (eventually hours).
We are encouraging dealerships to become familiar with the new program and register on the ECO Portal. Why afford your competitors an edge when registration and implementation incur no cost? Additionally, by having access to funds from the credit as customer cash, you may secure additional deals that could otherwise have been missed opportunities.
IRS Form 15400
In order to claim the credit, dealers must complete and file Form 15400 for each eligible transaction. You also have to provide the form to the customer so they can submit their claim. 2023 forms are due January 15, 2024, and we will provide an update when the IRS indicates where to send Form 15400
As always, we are keeping a close eye on this program and will provide updates as new information becomes available. If you have questions about the EV Credit Transfer program, please reach out to me or any member of our auto dealership team.
Barton D. Haag joined ARB in 1996 and has been a principal with the firm since 2005. As the Practice Leader for ARB’s Auto Dealership Team, Barton provides financial accounting, income tax planning, and business advisory services for clients in the automotive and motorcycle dealership industries. He also works with closely-held businesses, many of which are family-owned.