PDF document

- 1 -

Userid: CPM Schema: Leadpct: 100% Pt. size: 9.5 Draft Ok to Print
instrx
AH XSL/XML Fileid: … ns/i8936/202301/a/xml/cycle06/source (Init. & Date) _______

Page 1 of 4 10:55 - 16-Feb-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Department of the Treasury
Internal Revenue Service
Instructions for Form 8936

(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
prior revisions of the form for earlier tax years. All revisions
For the latest information about developments related to
are available at IRS.gov/Form8936.
Form 8936 and its instructions, such as legislation enacted
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
these vehicles is now available under the credit for new clean Electric Vehicle
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
greater;
Phaseout for Toyota vehicles. See the instructions for
Line 4b. • Is propelled to a significant extent by an electric motor that
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;
and
General Instructions • Meets certain additional requirements discussed under
Certification and Other Requirements, later.
Purpose of Form
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
IRS that a specific make, model, and model year vehicle
The credit attributable to depreciable property (vehicles 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

- 2 -

Page 2 of 4 Fileid: … ns/i8936/202301/a/xml/cycle06/source 10:55 - 16-Feb-2023

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
qualify for the credit. Other Requirements
• 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.
This is a new vehicle with at least four wheels placed in • Section 30D (as amended by the Inflation Reduction Act of
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
The credit for qualified plug-in electric drive motor vehicles
an external source of electricity;
sold before 2023 is subject to a phaseout (reduction) once
• Is manufactured primarily for use on public streets, roads,
the vehicle manufacturer (or, for a foreign manufacturer, its
and highways;
U.S. distributor) sells 200,000 of these vehicles to a retailer
• Has a gross vehicle weight of less than 14,000 pounds;
for use in the United States after 2009. The phaseout begins
• Had its final assembly within North America;
in the second calendar quarter after the quarter in which the
• Has a manufacturer's suggested retail price of not more
200,000th vehicle was sold. Then the phaseout allows 50%
than $55,000 ($80,000 for a van, sport utility vehicle (SUV),
of the full credit for 2 quarters, 25% of the full credit for 2
or pickup truck); and
additional quarters, and no credit thereafter. The phaseout
• Meets certain additional requirements discussed under
does not apply to vehicles sold after 2022.
New Clean Vehicle Certification and Other Requirements,
later. Basis Reduction
New Qualified Fuel Cell Motor Vehicle Unless you elect not to claim the credit, you may have to
reduce the basis of each vehicle by the sum of the amounts
This is a new vehicle with at least four wheels placed in
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)

- 3 -

Page 3 of 4 Fileid: … ns/i8936/202301/a/xml/cycle06/source 10:55 - 16-Feb-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

8910 or the qualified commercial clean vehicle credit on GM. Enter the following percentage if the vehicle was
Form 8936-A. manufactured by GM.
• 0% if you purchased it before 2023.
Recapture of Credit 100% if you purchased it after 2022.
•
If the vehicle no longer qualifies for the credit, you may have
to recapture part or all of the credit. For details, see section Line 5
30D(f)(5). Enter the percentage of business/investment use.
Enter 100% if the vehicle is used solely for business
Specific Instructions purposes or you are claiming the credit as the seller of the
vehicle.
Line 2
Enter the vehicle's VIN on line 2. The VIN of a vehicle can be If the vehicle is used for both business purposes and
obtained from the registration, title, proof of insurance, or personal purposes, determine the percentage of business
actual vehicle. Generally, the VIN is 17 characters made up use by dividing the number of miles the vehicle was driven
of numbers and letters. during the year for business purposes or for the production of
income (not to include any commuting mileage) by the total
Line 3 number of miles the vehicle was driven for all purposes. Treat
Enter 08/15/2022 if you qualify and elect to apply the vehicles used by your employees as being used 100% for
transition rule discussed below. business/investment purposes if the value of personal use is
included in the employees’ gross income, or the employees
Transition rule. If you purchased, or entered into a written
reimburse you for the personal use. If you report the amount
binding contract to purchase, a qualified plug-in electric drive
of personal use of the vehicle in your employee’s gross
motor vehicle after 2021 and before August 16, 2022, you
income and withhold the appropriate taxes, enter “100%” for
may elect to treat such vehicle as having been placed in
the percentage of business/investment use.
service on August 15, 2022, the day before the enactment
date of the Inflation Reduction Act of 2022. If during the tax year you convert property used solely for
personal purposes to business/investment use (or vice
Line 4a versa), figure the percentage of business/investment use
For two-wheeled vehicles, enter the cost of the vehicle you only for the number of months you use the property in your
entered on line 1. For vehicles with at least four wheels, enter business or for the production of income. Multiply that
the credit allowable for the year, make, and model of vehicle percentage by the number of months you use the property in
you entered on line 1. You can generally rely on the your business or for the production of income and divide the
manufacturer’s (or domestic distributor’s) certification to the result by 12. For example, if you converted a vehicle to 50%
IRS of the credit allowable as explained above. business use for the last 6 months of the year, you would
Tentative credit amounts acknowledged by the IRS for enter 25% on line 5 (50% multiplied by 6 divided by 12).
qualified plug-in electric drive motor vehicles are available at
IRS.gov/pluginvehiclecreditamounts by selecting vehicles For more information, see Pub. 463, Travel, Gift, and Car
purchased in 2022 or before. Tentative credit amounts for Expenses.
new clean vehicles are provided to the purchaser by the
seller at the time the vehicle is sold, and later forwarded to Line 7
the IRS. See New Clean Vehicle Certification and Other Enter any section 179 expense deduction you claimed for the
Requirements, earlier. vehicle from Part I of Form 4562, Depreciation and
Amortization.
For any vehicles subject to a reduced credit
! (discussed next), enter the original unreduced credit Line 13
CAUTION amount on line 4a.
Enter the total qualified plug-in electric drive motor vehicle
credits and any clean vehicle credits from:
Line 4b • Schedule K-1 (Form 1065), Partner's Share of Income,
Enter 100% unless the vehicle was a vehicle with at least four Deductions, Credits, etc., box 15 (code P); and
wheels manufactured by Toyota, Tesla, or GM (Chevrolet • Schedule K-1 (Form 1120-S), Shareholder's Share of
Bolt EV, etc.). Income, Deductions, Credits, etc., box 13 (code P).
Toyota. Enter the following percentage if the vehicle was Partnerships and S corporations report the above credits
manufactured by Toyota. on line 13. All other filers figuring a separate credit on earlier
• 100% if you purchased it before October 1, 2022. lines also report the above credits on line 13. All others not
• 50% if you purchased it after September 30, 2022, but using earlier lines to figure a separate credit can report the
before 2023. above credits directly on Form 3800, Part III, line 1y.
• 100% if you purchased it after 2022.
Tesla. Enter the following percentage if the vehicle was Line 18
manufactured by Tesla. Use the Line 18 Modified Adjusted Gross Income (MAGI)
• 0% if you purchased it before 2023. Limitation Worksheet to figure the amount to enter on line 18
• 100% if you purchased it after 2022. for a vehicle placed in service after 2022.

Instructions for Form 8936 (Rev. 1-2023) -3-

- 4 -

Page 4 of 4        Fileid: … ns/i8936/202301/a/xml/cycle06/source                                                                10:55 - 16-Feb-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Line 18 Modified Adjusted Gross Income (MAGI)
Limitation Worksheet                                                                                                             Keep for Your Records

1.  Enter $150,000 ($300,000 if married filing jointly or a qualifying surviving spouse; $225,000 if head of 
    household) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.  
2a. Enter the amount from line 11 of your 2022 Form 1040, 1040-SR, or 1040-NR  . . . . . . . . . . . . . .                       2a.  
b.  Enter any income from Puerto Rico you excluded  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      2b.  
c.  Enter any amount from Form 2555, line 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2c.  
d.  Enter any amount from Form 2555, line 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2d.  
e.  Enter any amount from Form 4563, line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e.  
3.  Add lines 2a through 2e  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         3.  
4a. Enter the amount from line 11 of your 2021 Form 1040, 1040-SR, or 1040-NR . . . . . . . . . . . . . . .                      4a.  
b.  Enter any income from Puerto Rico you excluded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     4b.  
c.  Enter any amount from Form 2555, line 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4c.  
d.  Enter any amount from Form 2555, line 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4d.  
e.  Enter any amount from Form 4563, line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4e.  
5.  Add lines 4a through 4e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        5.  
6.  Enter the smaller of line 3 or line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          6.  
7.  Subtract line 6 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      7.  
    If line 7 is: 
    • Less than zero, enter -0- on line 18.
    • Zero or more, enter the amount from line 15 on line 18.

                                                                       tax returns and return information are confidential, as 
Line 21
                                                                       required by section 6103.
Enter the total, if any, credits from Schedule 3 (Form 1040), 
lines 1 through 4, 6d, 6e, and 6I; and Form 5695, line 30.             The time needed to complete and file this form will vary 
                                                                       depending on individual circumstances. The estimated 
Line 23                                                                burden for individual and business taxpayers filing this form 
If you cannot use part of the personal portion of the credit           is approved under OMB control number 1545-0074 and 
because of the tax liability limit, the unused credit is lost. The     1545-0123 and is included in the estimates shown in the 
unused personal portion of the credit cannot be carried back           instructions for their individual and business income tax 
or forward to other tax years.                                         return. The estimated burden for all other taxpayers who file 
                                                                       this form is shown below.
Paperwork Reduction Act Notice. We ask for the 
information on this form to carry out the Internal Revenue             Recordkeeping . . . . . . . . . . . . . . . . . . .                                                         4 hr., 4 min.
laws of the United States. You are required to give us the             Learning about the law or the form. . . . . . .                                                             35 min.
information. We need it to ensure that you are complying with          Preparing and sending the form to the IRS. .                                                                41 min.
these laws and to allow us to figure and collect the right 
amount of tax.
You are not required to provide the information requested 
on a form that is subject to the Paperwork Reduction Act               If you have comments concerning the accuracy of these 
unless the form displays a valid OMB control number. Books             time estimates or suggestions for making this form simpler, 
or records relating to a form or its instructions must be              we would be happy to hear from you. See the instructions for 
retained as long as their contents may become material in              the tax return with which this form is filed.
the administration of any Internal Revenue law. Generally, 

                                                                   -4-                     Instructions for Form 8936 (Rev. 1-2023)

PDF file checksum: 1202527791

(Plugin #1/9.12/13.0)