How the Point-of-Sale EV Credit Transfer Works

What is the point-of-sale transfer?

Since January 1, 2024, buyers of qualifying EVs can transfer their federal tax credit to the dealer at the time of purchase. Instead of waiting to claim the credit on your tax return, you receive the credit as an immediate price reduction — the dealer effectively advances you the credit amount and is later reimbursed by the IRS.

How to use the point-of-sale transfer

First, confirm with the dealer that they are registered with the IRS Energy Credits Online portal — dealers must register to participate. At the time of purchase, you will complete IRS Form 15400 (Clean Vehicle Seller Report) attesting to your eligibility. The dealer reduces the purchase price by the credit amount. You must still file your tax return and report the transfer on Form 8936.

What if your income changes?

If you receive the point-of-sale credit but your actual income for the year exceeds the limit, you will not have to repay the credit — as long as you made a good-faith estimate of your eligibility at the time of purchase. However, if you knowingly misrepresented your income, you may be required to repay the credit with interest and penalties.

Advantages of the point-of-sale transfer

The main advantage is immediate cash flow — you do not have to wait until you file your taxes to realize the savings. This also reduces the amount you need to finance, lowering your monthly payment and total interest paid over the life of the loan.