IRS provides guidance on new rules for clean vehicle makers

The Internal Revenue Service and the Treasury Department released a revenue procedure Monday explaining the processes that manufacturers and sellers of "clean vehicles," such as electric cars, need to follow to be eligible for tax credits and other incentives.

For vehicle manufacturers, Revenue Procedure 2022-42 offers guidance on new rules in the tax law added by the Inflation Reduction Act, which Congress passed over the summer, on how to enter into a written agreement with the IRS and how to provide periodic written reports with specific information related to each clean vehicle manufactured.

The new revenue procedure also includes the procedures for people selling vehicles to report specified information to the IRS so the vehicles can be eligible for the tax credit for new or used clean vehicles.

Michael Nagle/Bloomberg

The IRS will not consider a vehicle to meet the requirements unless a qualified manufacturer submits a written report containing the information required. The written report must contain the name, address and taxpayer identification number of the qualified manufacturer.