This revenue procedure sets forth the
procedures under IRC sections 30D(g) and 25E(f) for the transfer
after December 31, 2023, of the new clean vehicle credit or
previously owned clean vehicle credit from the taxpayer who elects
to transfer such credit to an eligible entity (“transfer
election”). These procedures include the procedures for dealer
registration with the Internal Revenue Service (IRS), the
procedures for the revocation and suspension of that registration,
and the establishment of an advanced payment program to registered
dealers.
Section 30D and 25E
provide a tax credit for the acquisition and placing in service of
new clean vehicles and previously-owned clean vehicles,
respectively. Sections 30D and 25E allow the taxpayer purchasing
the clean vehicle to transfer the tax credit to an eligible entity.
This revenue procedure sets forth the procedures under §§ 30D(g)
and 25E(f) for the transfer after December 31, 2023, of the clean
vehicle credit or previously-owned clean vehicle credit from the
taxpayer who elects to transfer such credit to an eligible entity
(“transfer election”). These procedures include the procedures for
dealer registration with the IRS, the procedures for the revocation
and suspension of that registration, and the establishment of an
advanced payment program to registered dealers. Under the
procedures prescribed in this revenue procedure, a dealer of a new
clean vehicle or previously-owned clean vehicle that wishes to
partake in the advanced payment program under §§ 30D(g) and 25E(f),
must register with the IRS through the IRS Identity Registration
System and through the IRS Clean Vehicle Sales Portal. At the time
of registration through the IRS Clean Vehicle Sales Portal, the
dealer must provide certain information to the IRS and make certain
certifications. After those are complete, the IRS will perform a
tax compliance check to ensure the dealer is compliant with its tax
obligations. After a taxpayer makes a transfer election under §
30D(a) or § 25E(a) to the dealer, a dealer must upload certain
information through the IRS Clean Vehicle Sales Portal, and the
IRS, upon review, and if all conditions are met, will issue a
payment to the dealer. The Clean Vehicle Sales Portal is expected
to launch in October 2023 to allow dealers time to register before
the transfer election goes in effect on January 1, 2024. If the
revenue procedure is not published before September 29, 2023,
dealers may not have the information they need to register through
the Clean Vehicle Sales Portal and be eligible for the advanced
payment program when it first comes into effect, which may
adversely affect them. If that happens, taxpayers will be adversely
affected because they will not be eligible for an immediate benefit
of a discounted vehicle sales price (compared to a tax credit
claimed on a tax return on a later date). This will also harm the
public policy of making clean vehicles more affordable to
taxpayers. Once IRA passed in August 2022, IRS and Treasury began
an inter-agency effort to provide guidance to taxpayers for the
clean vehicle tax credits, including the Department of Energy
(DOE), Department of Transportation (DOT), Environmental Protection
Agency (EPA) and the Executive Office of the President (EOP). The
IRS has been working tirelessly to implement the various parts of
the changes to section 30D, and the new section 25E, it was not
possible to prepare this Revenue Procedure with sufficient time to
solicit public comment in advance of issuance. Therefore, due to
the extraordinary circumstances and statutory deadlines for
implementing the sections 30D and 25E tax credits, the Treasury and
IRS request emergency processing of this information collection
request by September 26, 2023. Given the inability to seek public
comment during such a short timeframe, IRS also respectfully
requests a waiver from the requirement to publish a notice in the
Federal Register seeking public comment during the period of Office
of Management and Budget review. However, public comment will be
solicited in conjunction with the approval to collect this
information.
US Code:
26
USC 30D Name of Law: Clean Vehicle Credit
US Code: 26
USC 25E Name of Law: Previously Owned Clean Vehicles
This is a new Revenue Procedure
developed to comply with IRC sections 30D(g) and 25E(f). There was
no paperwork burden previously approved by OMB. We are making this
submission to request OMB approval.
$12,400,000
No
Yes
Yes
No
No
No
No
Rika Valdman 202
371-5227
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
Emergency Justification Memo - RP 2023-33.docx
Advanced Payment Uploading of Information