25
Apr 2025
IRS Reopens Portal for 2024 Clean Vehicle Credit Claims, Offering Relief to Taxpayers and Dealers
In a significant update for taxpayers and auto dealers, the IRS has announced a critical change to its process for claiming clean vehicle credits for the 2024 tax year. This development, spurred by advocacy from the National Automobile Dealers Association (NADA), addresses widespread issues that prevented many from accessing the New Clean Vehicle Credit and the Previously-Owned Clean Vehicle Credit. Here’s what you need to know about this opportunity and how it could impact you.
The Issue: Delays in Clean Vehicle Credit Processing
For the 2024 tax year, claiming either the New Clean Vehicle Credit or the Previously-Owned Clean Vehicle Credit required dealers to submit IRS Form 15400, the Clean Vehicle Seller’s Report, through the IRS Energy Credits Online portal within 72 hours of a qualifying vehicle sale. This report was essential for taxpayers to claim the credit on their tax returns or to transfer the credit to the dealer as an advance payment at the time of sale.
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However, many dealers failed to submit these reports on time—or at all—due to logistical challenges or lack of awareness. As a result, taxpayers were unable to claim their credits, and dealers faced financial losses when advance payments were denied. The mismatch between tax returns and the IRS’s vehicle identification number (VIN) records created significant headaches for both parties.
The Solution: IRS Reopens the Portal
In response to these challenges, the IRS has reopened the Energy Credits Online portal to allow dealers to submit Form 15400 for 2024 clean vehicle transactions. According to the NADA’s alert, the IRS began testing this update in late March 2025 and officially rolled it out on March 26. Notably, the IRS is waiving the original 72-hour submission deadline, giving dealers a chance to retroactively file reports for qualifying sales.
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This change applies to both traditional credit claims (where the taxpayer claims the credit on their tax return) and advance payment transactions (where the dealer applies the credit at the point of sale). While the IRS has not specified how long the portal will remain open for these submissions, dealers are encouraged to act quickly to ensure compliance.
Why This Matters
The clean vehicle credits are a cornerstone of federal efforts to promote sustainable transportation. The New Clean Vehicle Credit offers up to $7,500 for qualifying electric or plug-in hybrid vehicles, while the Previously-Owned Clean Vehicle Credit provides up to $4,000 for used clean vehicles. These incentives make eco-friendly vehicles more affordable, but their success hinges on proper documentation.
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Without the Form 15400, taxpayers faced rejected claims, and dealers risked losing advance payments they had already applied. The IRS’s decision to reopen the portal is a lifeline for both groups, ensuring that eligible taxpayers can claim their credits and dealers can avoid financial penalties.
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The NADA played a pivotal role in securing this relief, advocating directly with the U.S. Department of Treasury and the IRS. Their efforts, combined with pressure from Congress and feedback from constituents, underscored the urgency of addressing these administrative hurdles.
What You Should Do Now
If you purchased a qualifying clean vehicle in 2024 but couldn’t claim the credit due to a missing Form 15400, now is the time to act. Contact your automobile dealer immediately to confirm that they’ve submitted the required seller’s report through the IRS portal. Both you and the dealer need a copy of this report to ensure the credit is processed correctly.
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For dealers, the reopened portal is an opportunity to rectify past oversights and support your customers. The NADA advises dealers to begin using the portal as soon as possible, as the window for submissions may be limited.
Looking Ahead
This update is a win for taxpayers, dealers, and the broader push for clean energy. By addressing the administrative bottlenecks that plagued the 2024 clean vehicle credit process, the IRS is helping to ensure that these incentives reach their intended recipients. However, the lack of a clear deadline for portal submissions means that prompt action is essential.
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For the latest information, taxpayers and dealers can monitor updates from the NADA or visit the IRS Energy Credits Online portal. As the clean vehicle market continues to grow, streamlining these processes will be critical to supporting sustainable transportation and rewarding those who invest in it.
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(This is Blog Post #1720)