What is Form 8936?
Form 8936 is used by individuals and businesses to claim federal tax credits for clean vehicles. It covers the New Clean Vehicle Credit (up to $7,500), the Previously Owned Clean Vehicle Credit (up to $4,000), and the Commercial Clean Vehicle Credit. If you bought or leased a qualifying clean vehicle, filling out this form can significantly reduce your tax bill.
What is Form 8936 used for?
Form 8936 is essential for claiming clean vehicle tax credits. Here's what it's used for:
- To claim the New Clean Vehicle Credit for qualifying new EVs and plug-in hybrids.
- To claim the Previously Owned Clean Vehicle Credit for qualifying used clean vehicles.
- To claim the Commercial Clean Vehicle Credit for business-use vehicles.
- To calculate the total credit amount applied to your tax return.
How to fill out Form 8936
1. Determine which credit applies:
New Clean Vehicle Credit (section 30D): For qualifying new EVs and plug-in hybrids.
Previously Owned Clean Vehicle Credit (section 25E): For qualifying used clean vehicles purchased for $25,000 or less.
Commercial Clean Vehicle Credit (section 45W): For qualifying vehicles used in a trade or business.
2. Complete Schedule A — Vehicle information (one per vehicle):
Enter the vehicle identification number (VIN) — a 17-character code found on the registration, title, or dashboard.
Enter the year the vehicle was placed in service.
Enter the vehicle make, model, and date of purchase.
3. Calculate your credit on Schedule A:
For new clean vehicles (Part I): Determine whether the vehicle meets the critical mineral requirement ($3,750) and the battery component requirement ($3,750) for a maximum credit of $7,500. Verify the vehicle's MSRP does not exceed the limit ($80,000 for SUVs/vans/pickups, $55,000 for other vehicles).
For previously owned clean vehicles (Part II): Enter the sale price and calculate the credit — the lesser of $4,000 or 30% of the sale price. Confirm the vehicle is at least 2 model years old and priced at $25,000 or less.
For commercial clean vehicles (Part III): Enter the vehicle cost or incremental cost and calculate the credit based on the applicable percentage.
4. Verify income eligibility (new and previously owned vehicles):
For new clean vehicles: Your modified AGI must not exceed $300,000 (MFJ), $225,000 (HOH), or $150,000 (single/other).
For previously owned clean vehicles: Your modified AGI must not exceed $150,000 (MFJ), $112,500 (HOH), or $75,000 (single/other).
5. Transfer totals to Form 8936:
Part I: Enter the combined new clean vehicle credit from all Schedule A forms.
Part II: Enter the combined previously owned clean vehicle credit.
Part III: Enter the combined commercial clean vehicle credit.
6. Apply tax limitations and attach:
Calculate your tax liability limitation to determine how much credit you can use this year.
Review the completed Form 8936 and all Schedule A forms for accuracy.
Attach everything to your Form 1040, 1040-SR, 1040-NR, or business return.
Who is required to fill out Form 8936?
Individuals who purchased or leased a new or previously owned clean vehicle, and businesses that acquired commercial clean vehicles, are responsible for filling out Form 8936.
The IRS uses this form to determine eligibility based on vehicle requirements, MSRP limits, and the taxpayer's adjusted gross income.
When is Form 8936 not required?
Form 8936 is specifically designed for individuals and businesses that have purchased a new qualified clean vehicle and are claiming the credit for that purchase.
You do not need Form 8936 if your vehicle doesn't meet the clean vehicle requirements — such as final assembly in North America, MSRP limits ($80,000 for SUVs/vans/pickups, $55,000 for other vehicles), or AGI limits ($300,000 MFJ, $150,000 single for new vehicles).
Additionally, if you're leasing the vehicle rather than purchasing, the credit typically goes to the leasing company, not to you, so in this scenario, you would not need to complete Form 8936. However, if you transferred the credit to the dealer at the point of sale, you are still required to file Form 8936 and Schedule A (Form 8936) to reconcile the advance payment and confirm your eligibility.
When is Form 8936 due?
The deadline for Form 8936 is typically April 15 of the year following the tax year in which the qualified vehicle was placed in service.
If you're working on your taxes and have a qualified plug-in electric drive motor vehicle, remember to submit Form 8936 by this date to claim your credit.
How to get a blank Form 8936
We offer a blank Form 8936 template issued by the IRS (Internal Revenue Service), pre-loaded in our editor for you to fill out. This means you don't need to look elsewhere for the template. Remember, while PDF Guru helps you fill out and download this form, it cannot assist you with submission.
How to sign 8936 form online?
To sign Form 8936 online with PDF Guru, start by loading the form in the PDF editor. Fill out the required fields with your information.
Once completed, use PDF Guru's feature to create a simple electronic signature. Add this signature to the designated area on Form 8936, then download your signed form.
How to sign Form 8936 online
To sign Form 8936 online with PDF Guru, start by loading the form in the PDF editor. Fill out the required fields with your information.
Once completed, use PDF Guru's feature to create a simple electronic signature. Add this signature to the designated area on Form 8936, then download your signed form.
Where to file Form 8936?
You must attach Form 8936 to your tax return and submit it online through IRS e-file or by mail. This allows flexibility based on your preference or needs.
Choosing to submit by mail requires printing and sending the completed form to the IRS.
Other forms related to Form 8936
Form 8910 - Alternative Motor Vehicle Credit
It's used to claim the Alternative Motor Vehicle Credit for certain qualifying alternative-fuel or fuel-cell vehicles placed in service. It is a separate credit from the Form 8936 clean vehicle credit, but it may appear on the same return if a taxpayer has both types of qualifying vehicles.
Who uses it: Individuals and businesses purchasing qualifying alternative fuel vehicles.
Form 8834 - Qualified Electric Vehicle Credit
Form 8834 is used to claim qualified electric vehicle passive-activity credits and certain prior-year carryovers, often in partnership or S corporation contexts. It is not the current-year clean-vehicle credit form; that is now handled by Form 8936.
Who uses it: Individuals and businesses with passive-activity or carryover credits related to qualified electric vehicles.
Form 3800 - General Business Credit
It's the summary form for various general business credits, including the credits calculated on Form 8936 and Form 8910. It is used by businesses (and certain pass-through entities) to consolidate, limit, and carry forward these credits.
Who uses it: Businesses claiming multiple business-related tax credits, including the electric and alternative vehicle credits.
