Maximize savings with the IRS energy credits online tool

As a tax professional, you’re used to clients asking about the latest credits and deductions, especially when it comes to clean energy. The IRS Energy Credits Online (ECO) tool is a new way to simplify that process for certain clients. This digital platform helps clean vehicle dealers and sellers, qualified manufacturers, businesses, tax-exempt organizations, and government entities that plan to make elective payment or transfer elections. Through ECO, they register vehicles or projects, submit required certifications and seller reports, and complete the pre-filing registration needed before claiming energy-related credits on a tax return.

Why it matters for you and your clients 

The Energy Credits Online tool helps bridge that gap. It lets manufacturers of qualified energy property register as Qualified Manufacturers (QMs), assign product identification numbers and upload the information needed to show product eligibility for the energy efficient home improvement tax credit. The IRS reviews these submissions and publishes a list of Qualified Manufacturers, but not all certifications or product-level details.

One of the biggest benefits of Energy Credits Online is accuracy. Every submission is automatically checked for missing or inconsistent information before it’s accepted. That means potentially fewer rejected credits or follow-up notices from the IRS.

Who can use ECO?

The IRS’s Energy Credits Online tool serves three primary user groups.

1. Clean vehicle dealers and sellers must register on the tool, so they can submit mandatory time-of-sale reports for qualifying new or previously owned clean vehicles and receive advance payments of the credit when they transfer it to the dealer. 
2. Taxpayers or entities using elective payment or transferability for clean energy credits, to complete pre-filing registration and manage those credits. “Elective payment and transferability” refers to entities that can claim clean energy credits and either elect direct pay (elective payment) or transfer those credits to another taxpayer for cash. This generally means businesses, tax-exempt organizations and other eligible entities holding §48/48E/45 credits, not a regular individual homeowner installing solar on their house. Individual home energy credits will still flow through the 1040 tax return and cannot use the ECO.
3. Manufacturers, businesses and tax-exempt organizations that qualify for certain clean energy credits can use the portal to register their entity, request registration numbers for each applicable credit property and complete an elective payment or transfer election even if they do not have current tax liability. Each entity uses the same portal but selects the link that corresponds to its role. In all cases, registration requires identity verification, submission of required information and ongoing access for tracking and reporting. The tool simplifies compliance and helps ensure eligible users access available credits efficiently.

Simplifying the process

The Energy Credits Online tool is available directly on the IRS website. Once logged in with existing IRS credentials, users can submit the required registration and project or product information. Manufacturers can register as Qualified Manufacturers and submit required reports electronically.  This process reduces paperwork, errors or misplaced forms.

IRS verification means the portal is safe

Security is another priority. The platform uses encrypted connections and IRS Secure Access verification to protect sensitive information. Because it’s integrated into the IRS’s e-Services system, you can trust that all submissions meet federal security standards. 

Helping clients prepare for filing

If you’re working with manufacturers, this tool is one more way to make this process smoother for their customers and yours. Encourage your manufacturers to use the tool to enter product information for certification and eligibility. Encourage your individual tax clients to keep receipts, invoices and digital copies of product certifications for any energy-related home improvements. When the filing season rolls around, you’ll have the documentation ready to support their claims, saving time and reducing audit risk.