Publication 5865 — Clean Vehicle Credit Transfer

Official source: IRS Forms, Instructions & Publications (https://www.irs.gov/pub/irs-pdf/p5865.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

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to use at filing and confirmation of Energy Credits Online acceptance.

Beginning on Jan. 1, 2024, buyers of qualifying new and previously-owned clean vehicles can transfer their tax expected credit ¹ to a dealer who has registered with the IRS as described below. The dealer can then provide the full amount of the expected credit to the buyer in the form of a downpayment for the purchase or cash, allowing the buyer to receive their full credit at the time of the sale.

At the time of sale, buyers can choose to transfer their clean vehicle credit to a participating dealer. In exchange, they will receive the credit in the form of a downpayment for the purchase or cash equal to the full value of the credit to which the buyers would otherwise be eligible. See if a vehicle qualifies by visiting fueleconomy.gov .

To receive a new or previously-owned clean vehicle credit, a buyer’s modified adjusted gross income must be below certain thresholds. Visit IRS.gov/cleanvehicles for more information.

Buyers must complete a transfer election and work with their dealer to submit information and attestations for a time of sale report. The dealer is required to provide a copy to the buyer at the time of sale, which includes information necessary to claim the credit on the buyer’s annual tax return.

Buyers who transfer the credit must complete and submit form 8936 Schedule A using information from the time of sale report when filing their annual tax return. Even if the vehicle is eligible, buyers who elect to transfer the credit but who fail to meet the income thresholds or eligibility criteria will need to repay the IRS when filing their tax return.