Good News for Electric Vehicle Owners Who Missed Out on Tax Credits

In a recent update, the IRS has come up with a solution for electric vehicle (EV) buyers who didn't get their tax credits. This decision comes after reports that some people missed out on these savings this spring because their car dealers didn't correctly report the sale of the 2024 vehicle purchases to the IRS through a required online system.

Read more: Why Some Electric Vehicle Buyers Didn’t Get Their Tax Credits This Year

Normally, car sales had to be reported within three days to qualify for the tax credit. However, the National Automobile Dealers Association (NADA) has announced that the IRS is now letting dealers report these sales even after the deadline. This means that if you bought an EV in 2024 and didn't get your tax credit because of a reporting delay, there's now a way to fix this issue.

The system to report these sales retroactively started testing on March 25 and was officially available as of the next day. It’s not clear how long this option will be available, but the IRS is encouraging dealers to start using it immediately.

Although the IRS hasn’t commented directly on this update, they have not denied any of the information shared by the NADA.

The update is also good news for dealers. In 2024, some offered the tax credit directly to the shoppers at the time of purchase but failed to report the sale on time. This meant the dealers were out of pocket, missing out on thousands of dollars. 

The NADA has pushed hard for the IRS to find a solution, and it seems their efforts have paid off, with even Congress members getting involved after hearing from concerned citizens.

To take advantage of the new reporting option, you’ll need to work directly with the dealer who sold you the car. Only dealers have access to the special ECO portal required to submit the sales information to the IRS.

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