Vehicles must follow the procedures outlined in the new guidance in order to qualify for one or more clean vehicle tax credits.
On December 12, the IRS published a revenue procedure that outlines the essential procedures for creating and selling clean vehicles. These procedures must be followed in order for a vehicle to qualify for one or more clean vehicle tax incentives, such as tax credits for commercial clean vehicles as well as new and previously owned clean vehicles.
Vehicle manufacturers can refer to Revenue Procedure 2022-42 for information on how to comply with the Inflation Reduction Act’s new tax law provisions, including how to enter into a written agreement with the IRS and submit periodic written reports containing specific information about each clean vehicle manufactured.
In order for a vehicle to qualify for the credit for new or previously owned clean vehicles, this revenue procedure also outlines the procedures for persons selling vehicles to report specific information to the IRS.
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