Rev. Proc. 2022-42: Procedures for manufacturers and sellers of clean vehicles to qualify for tax incentives

Procedures for manufacturers and sellers of clean vehicles to follow for vehicles to be eligible for one or more clean vehicle tax incentives

Procedures for manufacturers and sellers of clean vehicles

The IRS today released an advance version of Rev. Proc. 2022-42, setting out key procedures for manufacturers and sellers of clean vehicles to follow for vehicles to be eligible for one or more clean vehicle tax incentives as enacted or amended under H.R. 5376 (commonly called the “Inflation Reduction Act of 2022” (IRA)), including tax credits for new and previously owned clean vehicles, as well as for commercial clean vehicles.

According to the accompanying IRS release—IR-2022-218 (December 12, 2022)—Rev. Proc. 2022-42 provides:

  • Guidance for vehicle manufacturers on how to enter into a written agreement with the IRS and how to provide periodic written reports containing specified information related to each clean vehicle manufactured
  • Procedures for persons selling vehicles to report specified information to the IRS for a vehicle to be eligible for the credit for new or previously owned clean vehicles

Read Rev. Proc. 2022-42 [PDF 158 KB]

 

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