The IRS has introduced the Energy Credits Online (IRS ECO) portal, a modern online tool that facilitates the successful implementation of clean energy provisions outlined in the Inflation Reduction Act. This portal specifically caters to provisions that require pre-file registration. By showcasing the importance of modernizing IRS service and technology, IRS ECO plays a crucial role in achieving the economic and climate goals set by the Inflation Reduction Act.
Clean Vehicles: Effective January 1, 2024, individuals purchasing qualifying new or used clean vehicles can transfer their anticipated tax credit to registered dealers through IRS ECO. This allows dealers to provide the full credit amount to buyers as a down payment or cash during the vehicle purchase, ensuring buyers receive their complete credit at the time of sale. Dealers must be licensed to sell vehicles and register through IRS ECO to participate in the Clean Vehicle Credit transfer. Real-time confirmation of acceptance will be provided to dealers based on information from the Time of Sale report and Vehicle Identification Number (VIN) data provided by manufacturers to the IRS. Dealers can expect payment within 72 hours after successfully submitting the Time of Sale report online.
Direct Pay and Transfer Elections: IRS ECO enables state and local governments, Tribal organizations, tax-exempt organizations, and eligible taxable businesses to register for new monetization features introduced by the Inflation Reduction Act. It also grants access to monetization of the Creating Helpful Incentives to Produce Semiconductors (CHIPS) credit. Eligible entities can register through IRS ECO to take advantage of 12 clean energy credits offered by the Inflation Reduction Act, as well as the CHIPS credit. Registration in IRS ECO allows applicable organizations to opt for direct payment of credits or choose to transfer certain credits to third parties. Further guidance on direct payment and transfer election will be provided before the filing season begins.