When the Inflation Reduction Act was enacted in August of last year it introduced several programs designed to achieve climate goals, strengthen energy security, create new jobs and reduce energy costs for families. To achieve these goals, there were several tax updates made to reward individuals and companies for making energy efficient investments. In fact, there were 12 new federal tax credits introduced and several others modified including the New Clean Vehicle Tax Credit and the Used Clean Vehicle Tax Credit. Designed to encourage the purchase of energy efficient cars, taxpayers can receive a credit of up to $7,500 for the purchase. Through the end of this year, the only way to receive the credit is to submit a filing with the annual tax return. However, starting in 2024, the rules change allowing taxpayers the opportunity to transfer the credit and apply it toward the sales price. Unfortunately, many have been unsure how the process will work because of lack of IRS guidance. The good news is the agency recently released IRS Revenue Procedure 2023-33 which provides essential details. To help clients, prospects, and others, WhippleWood CPAs has provided a summary of the key information below.