Page 121 - IRS Business Tax Credits Guide

10:55 - 16-Feb-2023
Page 2 of 4
Fileid: … ns/i8936/202301/a/xml/cycle06/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
on such certification even if you had not placed the vehicle in • Had its final assembly within North America;
service or claimed the credit by the date the withdrawal • Has a manufacturer's suggested retail price of not more
announcement was published by the IRS. The IRS will not than $55,000 ($80,000 for a van, SUV, or pickup truck); and
attempt to collect any understatement of tax liability • Meets certain additional requirements discussed under
attributable to reliance on the certification as long as you New Clean Vehicle Certification and Other Requirements,
acquired the vehicle on or before the date the IRS published later.
the withdrawal announcement. New Clean Vehicle Certification and

The following additional requirements must be met to Other Requirements
qualify for the credit.
• You are the owner of the vehicle. If the vehicle is leased, Generally, for new clean vehicles (other than new qualified
only the lessor and not the lessee is entitled to the credit. fuel cell motor vehicles), the vehicle must have been
• You placed the vehicle in service during the tax year. manufactured by a qualified manufacturer. A qualified
• The original use of the vehicle began with you. manufacturer is a manufacturer who has entered into a
• You acquired the vehicle for use or to lease to others, and written agreement with the IRS under which the manufacturer
not for resale. agrees to make periodic written reports to the IRS providing
• You use the vehicle primarily in the United States. vehicle identification numbers (VINs) and other information
• For vehicles purchased after August 16, 2022, the final about their new clean vehicles. Information and certifications
assembly of the vehicle must occur within North America. For contained in these reports will help identify which vehicles
more information, go to IRS.gov/pluginvehiclecreditamounts qualify for the new clean vehicle credit. Manufacturers of fuel
and select vehicles purchased in 2022 or before. cell vehicles are also encouraged to file these reports.
Exception. If you are the seller of a qualified plug-in electric The seller of new clean vehicles (including fuel cell
drive motor vehicle or qualified two-wheeled plug-in electric vehicles) will provide a report to the purchaser providing
vehicle to a tax-exempt organization, a governmental unit, or information needed to claim the credit including the following.
a foreign person or entity, and the use of that vehicle is • The purchaser’s name and taxpayer identification number.
described in section 50(b)(3) or (4), you can claim the credit, • The vehicle’s VIN.
but only if you clearly disclose in writing to the purchaser the • Verification that the original use of the vehicle begins with
amount of the tentative credit allowable for the vehicle (from the purchaser.
line 11 of Form 8936). Treat all vehicles eligible for this • The maximum new clean vehicle credit allowable for the
exception as business/investment property. If you elect to vehicle.
claim the credit, you must reduce cost of goods sold by the
The following additional requirements must be met to
amount you entered on line 11 for that vehicle. qualify for the credit.
More information. For details, see the following. • You are the owner of the vehicle. If the vehicle is leased,
• Notice 2009-89, 2009-48 I.R.B. 714, available at only the lessor and not the lessee is entitled to the credit.
IRS.gov/irb/2009-48_IRB#NOT-2009-89. • You placed the vehicle in service during the tax year.
• Notice 2013-67, 2013-45 I.R.B. 470, available at • The original use of the vehicle began with you.
IRS.gov/irb/2013-45_IRB#NOT-2013-67. • You acquired the vehicle for use or to lease to others, and
• Notice 2016-51, 2016-37 I.R.B. 344, available at not for resale.
IRS.gov/irb/2016-37_IRB#NOT-2016-51. • You use the vehicle primarily in the United States.
New Clean Vehicle More information. For details, see the following.
• Section 30D (as amended by the Inflation Reduction Act of
This is a new vehicle with at least four wheels placed in 2022).
service after 2022 that: • IRS.gov/pluginvehiclecreditamounts.
• Is propelled to a significant extent by an electric motor that
draws electricity from a battery that has a capacity of not less Credit Phaseout
than 7 kilowatt hours and is capable of being recharged from
an external source of electricity; The credit for qualified plug-in electric drive motor vehicles
• Is manufactured primarily for use on public streets, roads, sold before 2023 is subject to a phaseout (reduction) once
and highways; the vehicle manufacturer (or, for a foreign manufacturer, its
• Has a gross vehicle weight of less than 14,000 pounds; U.S. distributor) sells 200,000 of these vehicles to a retailer
• Had its final assembly within North America; for use in the United States after 2009. The phaseout begins
in the second calendar quarter after the quarter in which the
• Has a manufacturer's suggested retail price of not more
than $55,000 ($80,000 for a van, sport utility vehicle (SUV), 200,000th vehicle was sold. Then the phaseout allows 50%
or pickup truck); and of the full credit for 2 quarters, 25% of the full credit for 2
additional quarters, and no credit thereafter. The phaseout
• Meets certain additional requirements discussed under
New Clean Vehicle Certification and Other Requirements, does not apply to vehicles sold after 2022.
later. Basis Reduction
New Qualified Fuel Cell Motor Vehicle Unless you elect not to claim the credit, you may have to
This is a new vehicle with at least four wheels placed in reduce the basis of each vehicle by the sum of the amounts
entered on lines 11 and 18 for that vehicle.
service after 2022 that:
• Is propelled by power derived from one or more cells that Coordination With Other Credits
convert chemical energy directly into electricity by combining
oxygen with hydrogen fuel; A vehicle that qualifies for the credit on this form cannot be
• Is manufactured primarily for use on public streets, roads, used to claim the alternative motor vehicle credit on Form
and highways;

-2- Instructions for Form 8936 (Rev. 1-2023)