The IRS has issued final regulations for new and previously owned clean vehicle credits, including rules for how buyers can transfer credits for such vehicles to registered dealers at the point of sale rather than waiting until they file their returns.
The final regulations also include rules about the process for dealers to become eligible entities to receive advance payments of the transferred credits.
The regulations provide rules regarding the critical mineral and battery component requirements for the new clean vehicle credit, and they add a new test for mineral content.
To qualify for the credit, a new vehicle must meet certain other requirements, including a limit on the manufacturer's suggested retail price. Also, the taxpayer claiming the credit must meet certain requirements, including income limitations. Learn more.