If you’re thinking about buying an electric vehicle (EV) and hoping for that Clean Vehicle Tax Credit… buckle up. What started out as a great idea under the Inflation Reduction Act turned into a paperwork nightmare in 2024—and a lot of people got burned.
Here’s the Deal
The Clean Vehicle Credit offers up to $7,500 for new EV purchases. Sounds awesome, right? But of course, the government added a bunch of fine print.
- The vehicle has to be assembled in the U.S.
- The minerals and battery parts have to come from certain countries.
- There’s a price cap on the car.
- There’s an income cap on you.
- The dealer has to be registered.
- And a special form (Form 15400) has to be submitted to the IRS within 72 hours of putting the car into service.
That last one? Yeah, that’s where things hit the fan.
The 72-Hour Rule Messed Everything Up
Here’s what happened: A bunch of dealers didn’t file that time-of-sale report in time. Either they didn’t know, didn’t care, or thought the rules from 2023 still applied.
Buyers didn’t know to ask for the form, and when they filed their taxes expecting the credit, boom—denied.
Even worse? Some buyers transferred the credit to the dealer (which knocks the price down up front), and those dealers still didn’t get paid by the IRS because the form wasn’t filed in time.
So now we’ve got frustrated buyers, mad dealers, and a credit that nobody’s actually getting. Enter: the National Automobile Dealers Association (NADA), banging on the IRS’s door.
IRS to the Rescue (Sort of)
After enough noise, the IRS finally backed off the 72-hour deadline. They’re now accepting late forms through their Energy Credits Online portal. No new deadline (yet), which means:
- Dealers: Get those rejected or missing forms submitted ASAP.
- Buyers: Call your dealer. Make sure that form is filed. If you already got denied, you may need to amend your tax return with Form 8936 to get your credit back.
Heads Up: This Credit Might Not Be Around Long
Congress is talking about repealing the Clean Vehicle Credit altogether—possibly later this year. There’s pushback on the whole clean energy package from 2022, and if that repeal makes it into law, the credit could disappear.
That said, it’s unlikely they’d make it retroactive to the start of 2025. But if you’re thinking about buying an EV, doing it before Congress passes anything might be the safest bet.
One More Thing—Tariffs Could Drive Prices Up
With tariffs possibly going up on imported auto parts, manufacturers may have no choice but to raise prices. That matters because there’s a limit on how expensive the car can be to still qualify for the credit:
- $80K for SUVs, vans, trucks
- $55K for everything else
If the EV you’re eyeing is already close to that limit, you may want to move fast before the price tag pushes it over the edge.
Bottom Line
The Clean Vehicle Credit can save you thousands—but only if the IRS paperwork gets handled correctly and on time. Whether you’re a buyer or a dealer, double-check the details, follow up, and don’t assume anything. The rules have changed, and more changes might be coming.
If you’ve got questions about claiming this credit—or need help fixing a denied one—reach out. Let’s get it sorted before the government changes the rules again.
