IRS Publication 6059 – In an era where sustainable transportation is gaining momentum, the Internal Revenue Service (IRS) has introduced tools to make claiming tax credits for clean vehicles easier for dealers, sellers, and buyers. IRS Publication 6059, titled “Clean Vehicle Eco Tool Features,” serves as a comprehensive guide outlining the functionalities of the IRS Energy Credits Online (ECO) tool. Revised in January 2025, this publication highlights enhanced capabilities designed to streamline processes related to clean vehicle tax credits under sections like IRC 30D for new vehicles and IRC 25E for used ones. As of February 2026, with recent legislative changes from the One Big Beautiful Bill (OBBB), it’s crucial to understand these features amid ongoing phase-outs for certain credits.
This SEO-optimized article delves into the key aspects of Publication 6059, drawing from official IRS sources to help you navigate the ECO tool’s features, registration, and updates. Whether you’re a dealership looking to offer instant tax credit discounts or a buyer exploring eligibility, this guide provides actionable insights.
What Is the IRS Clean Vehicle ECO Tool?
The IRS Energy Credits Online (ECO) tool is a secure, web-based portal launched to facilitate the administration of clean vehicle tax credits. It allows registered dealers and sellers to submit time-of-sale reports, verify buyer eligibility, and process advance payments for transferred credits—all online without needing special software. Introduced as part of the Inflation Reduction Act initiatives, the tool supports credits up to $7,500 for qualifying new electric vehicles (EVs) and fuel cell vehicles (FCVs), and up to $4,000 for used clean vehicles.
Publication 6059 specifically focuses on the tool’s features, emphasizing how it helps dealers report sales, handle returns, and ensure compliance. It’s available in English and Spanish versions, making it accessible to a broader audience. The tool integrates with IRS systems to provide near-real-time processing, with advance payments typically arriving within 72 hours of submission.
Key Features of the Clean Vehicle ECO Tool as Outlined in Publication 6059
Based on the latest revision (Rev. 01-2025), Publication 6059 details several enhanced features that expand capabilities for clean vehicle dealers and manufacturers. These include streamlined reporting and search functions to improve efficiency and accuracy in claiming tax credits. Here’s a breakdown of the core features:
- Clean Vehicle Returns and Cancellations: Dealers can report returned vehicles and return advance payments directly through the ECO tool. This feature allows for voiding time-of-sale reports within 48 hours if a vehicle isn’t placed in service, or canceling reports for returns after that period. It ensures compliance when deals fall through, preventing erroneous credit claims.
- Enhanced Time-of-Sale Search Capability: Dealers can search time-of-sale reports more effectively, filtering by various criteria to review past submissions quickly. This helps in auditing and correcting records on the fly.
- Advance Payment Registration and Processing: Licensed dealers can register for advance payments when buyers transfer their credit at the point of sale, reducing the vehicle price instantly. Payments are processed swiftly, often within 72 hours, and the tool generates required reports for tax filing.
- Secure Two-Way Messaging: A built-in messaging system allows dealers to communicate directly with the IRS for queries or clarifications, enhancing support without external channels.
- Report Review and Editing: Users can review, edit, and update submitted reports, ensuring accuracy before finalizing. This is particularly useful for commercial clean vehicle credits under IRC 45W.
These features make the ECO tool indispensable for handling the complexities of clean vehicle tax incentives, such as critical mineral and battery component requirements that determine credit amounts.
How to Register and Use the ECO Tool?
Registration is straightforward and mandatory for dealers handling clean vehicle sales from 2024 onward. Follow these steps based on IRS guidelines:
- Access the Portal: Visit the IRS ECO portal via IRS.gov and select “Vehicle Dealers and Sellers.”
- Identity Verification: Use ID.me to verify your identity with a photo ID.
- Business Registration: Provide your EIN, business details, dealership license (if applicable), and bank information for advance payments.
- Submit Reports: Once registered, submit time-of-sale reports including vehicle VIN, buyer details, and credit transfer elections.
Authorized users can delegate access to employees, and the portal supports both new and returning users. For visual aids, refer to IRS-provided guides like Publication 5863 for step-by-step screenshots.
Recent Updates and Phase-Out Considerations in 2026
As of February 2026, the ECO tool continues to operate but with key phase-out timelines due to OBBB changes. Federal clean vehicle credits (30D, 25E, 45W) are no longer available for vehicles acquired after September 30, 2025, shifting focus to when the vehicle is “acquired” rather than delivered. Additionally:
- Effective February 1, 2026: No more edits, returns, or cancellations for 2024 sales via the portal.
- Effective March 1, 2026: Late time-of-sale reports for 2024 are disallowed.
Dealers should act promptly on any pending 2024 items. State incentives may still apply, so check local resources for ongoing EV support. The IRS recommends subscribing to e-News for future updates.
Conclusion: Leveraging Publication 6059 for Sustainable Tax Savings
IRS Publication 6059 empowers stakeholders in the clean vehicle market by detailing the ECO tool’s robust features, from return handling to rapid payments. As tax credits evolve in 2026, staying informed through trusted IRS sources ensures compliance and maximizes benefits. Download the publication directly from the IRS website for the full details, and consult a tax professional for personalized advice.
For more on qualifying vehicles, explore the IRS’s fuel economy database. Transitioning to clean vehicles not only supports environmental goals but also offers financial incentives—act now before phase-outs fully take effect.