Page 120 - IRS Business Tax Credits Guide

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Instructions for Form 8936 Pt. size: 9.5 10:55 - 16-Feb-2023
Department of the Treasury
Internal Revenue Service
(Rev. January 2023)
Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified
Two-Wheeled Plug-in Electric Vehicles and New Clean Vehicles)
Section references are to the Internal Revenue Code unless Which Revision To Use
otherwise noted. Use the January 2023 revision of Form 8936 for tax years
Future Developments beginning in 2022 or later, until a later revision is issued. Use
For the latest information about developments related to prior revisions of the form for earlier tax years. All revisions
Form 8936 and its instructions, such as legislation enacted are available at IRS.gov/Form8936.
after they were published, go to IRS.gov/Form8936. Qualified Plug-in Electric Drive Motor
What’s New Vehicle

Qualified plug-in electric drive motor vehicles. The This is a new vehicle with at least four wheels placed in
credit for qualified plug-in electric drive motor vehicles is not service before 2023 that:
available for vehicles placed in service after 2022. See • Is propelled to a significant extent by an electric motor that
Qualified Plug-in Electric Drive Motor Vehicle, later. draws electricity from a battery that has a capacity of not less
than 4 kilowatt hours and is capable of being recharged from
New clean vehicles. The credit for new clean vehicles is an external source of electricity;
available for vehicles placed in service after 2022. See New • Is manufactured primarily for use on public streets, roads,
Clean Vehicle, later. and highways;
Two-wheeled vehicles. The credit for qualified • Has a gross vehicle weight of less than 14,000 pounds;
two-wheeled plug-in electric vehicles expired for vehicles and
acquired after 2021. However, if you acquired the • Meets certain additional requirements discussed under
two-wheeled vehicle in 2021, but placed it in service during Certification and Other Requirements, later.
2022, you may still be able to claim the credit for 2022. Qualified Two-Wheeled Plug-in
New qualified fuel cell motor vehicles. The credit for Electric Vehicle
these vehicles is now available under the credit for new clean
vehicles for vehicles placed in service after 2022. A credit for This is a new vehicle with two wheels acquired before 2022
these vehicles was formerly allowed on Form 8910, that:
Alternative Motor Vehicle Credit. • Is capable of achieving a speed of 45 miles per hour or
Phaseout for Toyota vehicles. See the instructions for greater;
• Is propelled to a significant extent by an electric motor that
Line 4b. draws electricity from a battery that has a capacity of not less
Phaseout ending after 2022. Toyota, Tesla, and General than 2.5 kilowatt hours and is capable of being recharged
Motors (GM) vehicles sold after 2022 will no longer be from an external source of electricity;
subject to a credit phaseout. • Is manufactured primarily for use on public streets, roads,
Transition rule. See the instructions for Line 3. and highways;
• Has a gross vehicle weight of less than 14,000 pounds;
General Instructions and
• Meets certain additional requirements discussed under
Purpose of Form Certification and Other Requirements, later.
Use Form 8936 to figure your credit for qualified plug-in Certification and Other Requirements
electric drive motor vehicles you placed in service during Generally, for qualified plug-in electric drive motor vehicles
your tax year. Also use Form 8936 to figure your credit for and qualified two-wheeled plug-in electric vehicles, you can
certain qualified two-wheeled plug-in electric vehicles and rely on the manufacturer’s (or, in the case of a foreign
new clean vehicles discussed under What's New, earlier. manufacturer, its domestic distributor’s) certification to the
The credit attributable to depreciable property (vehicles IRS that a specific make, model, and model year vehicle
qualifies for the credit and, if applicable, the amount of the
used for business or investment purposes) is treated as a credit for which it qualifies. The manufacturer or domestic
general business credit. Any credit not attributable to distributor should be able to provide you with a copy of the
depreciable property is treated as a personal credit. IRS letter acknowledging the certification of the vehicle.

Partnerships and S corporations must file this form to If, however, the IRS publishes an announcement that the
claim the credit. All other taxpayers are not required to certification for any specific make, model, and model year
complete or file this form if their only source for this credit is a vehicle has been withdrawn, you cannot rely on the
partnership or S corporation. Instead, they can report this certification for such a vehicle acquired after the date of
credit directly on line 1y in Part III of Form 3800, General publication of the withdrawal announcement.
Business Credit.
If you acquired a vehicle and its certification was
withdrawn on or after the date you acquired it, you can rely

Feb 16, 2023 Cat. No. 67912V