Did you purchase an electric vehicle in 2024 but were unable to claim the up to $7,500 clean vehicle tax credit due to a dealership error? You’re not alone. A significant number of buyers missed out because their dealer failed to file the necessary paperwork in time. Thankfully, the Internal Revenue Service (IRS) has now provided a crucial solution to this frustrating problem.
The Problem: Why Some 2024 EV Buyers Missed Their Tax Credit
With the introduction of the new point-of-sale EV tax credit in 2024, a new requirement was placed on dealerships. For a buyer to be eligible, the dealer had to report the sale through the new IRS Energy Credits Online (ECO) portal within three days of the purchase.
Unfortunately, due to complexities with the new system, some dealers missed this critical three-day window. This oversight left buyers unable to claim the credit they were counting on. Worse, dealers who advanced the credit to the customer at the point of sale were left unable to get reimbursed by the IRS, causing financial losses. Until now, there was no way to correct this retroactively.
The IRS Solution: A Second Chance for Dealers to Report Sales
Following strong advocacy from the National Automobile Dealers Association (NADA) and members of Congress, the IRS has reopened its portal to address this issue.
Effective immediately, the IRS is waiving the three-day submission deadline for qualifying clean vehicle sales made in 2024. This allows dealerships to go back and submit the “time of sale” reports for vehicles sold earlier this year, ensuring both buyers and dealers can receive the financial benefits they are entitled to.
How to Claim Your Missed EV Tax Credit: Next Steps for Buyers
If you believe you were affected by this dealership reporting issue, you must take action to secure your credit. The responsibility for submitting the report lies solely with the dealership.
Here are the steps you need to take:
- Confirm Your Eligibility: Ensure your vehicle purchase met all the requirements for the 2024 Clean Vehicle Credit (e.g., MSRP limits, battery capacity, buyer income limits).
- Contact Your Dealership Immediately: Reach out to the dealer where you purchased your EV. Inform them about the IRS fix and ask them to submit your 2024 vehicle sale information through the IRS ECO portal.
- Provide Necessary Information: The dealer may need to confirm details from your original purchase, so have your bill of sale and personal information ready.
- Follow Up: Once the dealer submits the report, you should receive a copy of the successful submission confirmation. This document is crucial for your tax filing records.
A Welcome Fix for a New System
This move by the IRS is a significant relief for consumers and auto dealers navigating the new clean energy tax credit landscape. It corrects an unintended consequence of a new process and ensures that early adopters of electric vehicles in 2024 are not unfairly penalized. If you missed out on your credit, the window to fix it is now open—but you’ll need to work with your dealer to complete the process.
