Rev. Proc. 2022-42 Treasury and IRS set out procedures for manufacturers, sellers of clean vehicles

[TaxmanHog]

What you all have been waiting for:

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[gymgeek]

Beginning January 1, 2023, eligible vehicles may qualify for a tax credit of up to $7,500.
Until the day after the Treasury Department and the IRS issue proposed guidance on the critical mineral and battery
component requirements of the new clean vehicle credit under § 30D, the credit is calculated as a $2,500 base amount plus,
for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an
additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours, up to an additional $5,000 beyond
the base amount. In general, the minimum credit amount will be $3,751 ($2,500 + 3 * $417), representing the credit
amount for a vehicle with the minimum of 7 kilowatt hours of battery capacity.

This is very good news for people taking delivery before mid-Marchish when the IRS comes out with their real rules!

 

[Snappy22]

Another benefit to some may be that the income limits are the lesser of the taxable year you receive the vehicle or the preceeding year.
so if you receive the truck in 2023, if you were under income limits in 2022 you’ll still qualify

 

[Pod]

So, does my 2023 XLT qualify if I take delivery by March? I’m confused.

 

[RickLightning]

So, does my 2023 XLT qualify if I take delivery by March? I’m confused.

If your MSRP, including all factory installed options, excluding destination charge, excluding any dealer installed options, is $80,000 or lower, AND you earn up to $150,000 (individual) or $300,000 (family), then yes. Otherwise, no.

 

[Pod]

Thank you. Joy of joys.

 

[wighty]

... so which manufacturer is going to test the limits and start charging huge delivery/destination fees to lower the MSRP below the thesholds?

F-150 Lariat ER MSRP $75k with $10k destination charge!

 

[EdwinT]

... so which manufacturer is going to test the limits and start charging huge delivery/destination fees to lower the MSRP below the thesholds?

F-150 Lariat ER MSRP $75k with $10k destination charge!

kind of like the old days of ebay where people charge all the cost in shipping lol

 

[wighty]

kind of like the old days of ebay where people charge all the cost in shipping lol

That is exactly what I was thinking of when I posted that.

 

[EdwinT]

That is exactly what I was thinking of when I posted that.

or send over half the items as bolt ons at the dealer . Tailgate, center console, etc don't come standard anymore

 

[eecyclone]

The SELLER'S REPORTS section has me afraid of my early 2023 purchase! what if the dealer is confused of all this at the time of the sale and doesn't get the paperwork done?! Now the dealers are required to be IRS agents lol?!?

"SECTION 5. SELLER’S REPORTS .01 Required Reports under Sections 30D and 25E. For purposes of § 30D(d)(1)(H), the person who sells any vehicle to the taxpayer or, for purposes of § 25E(c)(1)(D)(i), the dealer (as defined in § 30D(g)(8)) who sells any vehicle to the taxpayer, as applicable, (collectively, Seller) must furnish a report to the taxpayer and the IRS, at such time and in such manner as the Secretary provides containing information that is listed in this section 5.01. Accordingly, for vehicle sales occurring in calendar year 2023 or later, the Seller must provide the report to the taxpayer not later than the date the vehicle is purchased and must submit the report to Secretary within fifteen (15) days of the end of the calendar year containing the following:"

Any idea how the Seller (Dealer) is supposed to submit the report to both myself and the IRS? Is there any official word on what the report should look like? I saw that it must include the following:

Provide the following information to buyers at the time of sale:​

Seller/Dealer name and taxpayer ID number​

Buyer's name and taxpayer ID number​

Maximum credit allowable under IRC 30D for new vehicles or IRC 25E for previously owned vehicles​

Vehicle identification number (VIN), unless the vehicle is not assigned one​

Battery capacity​

Date of sale​

Sale price​

For new vehicles, verification that the buyer is the original user​

 

[EdwinT]

Any idea how the Seller (Dealer) is supposed to submit the report to both myself and the IRS? Is there any official word on what the report should look like? I saw that it must include the following:

Provide the following information to buyers at the time of sale:​

Seller/Dealer name and taxpayer ID number​

Buyer's name and taxpayer ID number​

Maximum credit allowable under IRC 30D for new vehicles or IRC 25E for previously owned vehicles​

Vehicle identification number (VIN), unless the vehicle is not assigned one​

Battery capacity​

Date of sale​

Sale price​

For new vehicles, verification that the buyer is the original user​

Ford now has the document that your dealer can pull up in their system!

This is a picture from a member in the 12/5 group. I showed my sales manager and he was able to find it. They give you a copy and I assume submit the same to the IRS via some submission system. I will be touching base with my dealer mid year to make sure they did. If you find out how please let us know. Also get a blank form if you can so we can post it here as a sticky to help others

 

[TaxmanHog]

They give you a copy and I assume submit the same to the IRS via some submission system. I will be touching base with my dealer mid year to make sure they did. If you find out how please let us know.

Don't worry about how the dealer or the manufacturer will report to IRS, that will be a post end of year process, like mass reporting of all 1099/W2 information.

https://www.irs.gov/e-file-providers/filing-information-returns-electronically-fire

 

[EdwinT]

Don't worry about how the dealer or the manufacturer will report to IRS, that will be a post end of year process, like mass reporting of all 1099/W2 information.

What I they forget to report mine and I claim the credit anyway. I hope this is not a concern

 

[TaxmanHog]

What I they forget to report mine and I claim the credit anyway. I hope this is not a concern

Leg irons .... just kidding, do not worry, if your return is flagged, you may need to present your copy of the dealer certification, that will resolve the processing stop and your claim will get paid.

BTW, these new processes involve Tax Year 2023 and return processing commencing 1/1/2024

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