Clean Vehicle Tax Credit Transfers to Car Dealers (CRS Report for Congress)
| Release Date |
Revised Dec. 2, 2024 |
| Report Number |
IF12570 |
| Report Type |
In Focus |
| Authors |
Nicholas E. Buffie |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
In May 2024, the Internal Revenue Service (IRS) issued
final regulations for transfers of clean vehicle tax credits
from consumers to car dealers. The regulations apply to the
clean vehicle credit (CVC) and the used clean vehicle
credit (UCVC), both of which were enacted under the
Inflation Reduction Act of 2022 (P.L. 117-169). The
regulations detail how transferred credits—unlike credits
claimed when tax returns are filed—may exceed total
income tax liabilities.
Taxpayers acquiring new electric vehicles and fuel cell
vehicles may qualify for a CVC. The credit is described in
Section 30D of the Internal Revenue Code (IRC). The Joint
Committee on Taxation (JCT) projects that the CVC will
reduce federal revenues by $19 billion between FY2023
and FY2027.
Eligible vehicles must be acquired before 2033 and have
undergone final assembly in North America. Individuals
and businesses may claim the credit for only one vehicle
per year.
