TREASURY AND IRS SET OUT PROCEDURES FOR MANUFACTURERS, SELLERS OF CLEAN VEHICLES:

The Treasury Department and Internal Revenue Service have issued a Revenue Procedure setting out key processes for manufacturers and sellers of clean vehicles. These processes are required for vehicles to be eligible for one or more clean vehicle tax incentives, including tax credits for new and previously owned clean vehicles, as well as for commercial clean vehicles.

For vehicle manufacturers, Revenue Procedure 2022-42 provides guidance on new rules in the tax law added by the Inflation Reduction Act on how to enter into a written agreement with the IRS and how to provide periodic written reports containing specified information related to each clean vehicle manufactured.

This revenue procedure also provides the procedures for persons selling vehicles to report specified information to the IRS for a vehicle to be eligible for the credit for new or previously owned clean vehicles.

Note from the Editor: The NSTP Federal Tax Update and Review Course covers all of the credits as part of the Inflation Reduction Act which includes the three new clean vehicle credits.