Federal Tax Credit Requirements for Dealers

The Inflation Reduction Act of 2022 established new federal clean vehicle credits that went into effect on January 1, 2023. Individuals and businesses can qualify for these tax credits by purchasing qualified new or used plug-in hybrid and battery electric vehicles, including several vehicle models that qualify for Efficiency Maine incentives.

The IRS guidance on these tax credits includes requirements that sellers of eligible vehicles (such as dealerships) report specific information to the buyer at the time of sale, and to the IRS by January 15 of the year after the sale. In order to help Participating Dealers with these reporting requirements, EMT has created an example template report of federal tax credit information and an informational one-pager with the federal guidance for dealers. Additionally, EMT has added reminders about IRS reporting requirements to our Purchaser Agreement and Dealer Reimbursement Form.

Starting Tuesday, October 10, EMT is making adherence to the clean vehicle credit IRS guidelines one of the conditions for continued listing as a Participating Dealer. Participating Dealers are not required to use the report template if they prefer an alternative that conveys all information required by the IRS. However, all Participating Dealers must use the new Purchaser Agreement to ensure customers are made aware of the tax credit rules at the time of purchase.