Instructions for IRS Form 8936 "Qualified Plug-In Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-In Electric Vehicles)"

This document contains official instructions for IRS Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-In Electric Vehicles) - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 8936 is available for download through this link.

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Download Instructions for IRS Form 8936 "Qualified Plug-In Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-In Electric Vehicles)"

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2019
Department of the Treasury
Internal Revenue Service
Instructions for Form 8936
Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified
Two-Wheeled Plug-in Electric Vehicles)
Section references are to the Internal Revenue Code
Is propelled to a significant extent by an electric motor
unless otherwise noted.
that draws electricity from a battery that has a capacity of
not less than 2.5 kilowatt hours and is capable of being
Future Developments
recharged from an external source of electricity, and
Has a gross vehicle weight of less than 14,000 pounds.
For the latest information about developments related to
Form 8936 and its instructions, such as legislation
Certification and Other Requirements
enacted after they were published, go to
IRS.gov/
Generally, you can rely on the manufacturer’s (or, in the
Form8936.
case of a foreign manufacturer, its domestic distributor’s)
What's New
certification to the IRS that a specific make, model, and
model year vehicle qualifies for the credit and, if
The credit for qualified two-wheeled plug-in electric
applicable, the amount of the credit for which it qualifies.
vehicles has been extended to cover vehicles acquired in
The manufacturer or domestic distributor should be able
2018, 2019, and 2020.
to provide you with a copy of the IRS letter acknowledging
Line 4b. Line 4b is used to reduce the credit for certain
the certification of the vehicle.
vehicles purchased after 2018. See
Credit Phaseout
and
If, however, the IRS publishes an announcement that
Line
4b.
the certification for any specific make, model, and model
General Instructions
year vehicle has been withdrawn, you cannot rely on the
certification for such a vehicle purchased after the date of
publication of the withdrawal announcement.
Purpose of Form
If you purchased a vehicle and its certification was
Use Form 8936 to figure your credit for qualified plug-in
withdrawn on or after the date of purchase, you can rely
electric drive motor vehicles you placed in service during
on such certification even if you had not placed the vehicle
your tax year. Also use Form 8936 to figure your credit for
in service or claimed the credit by the date the withdrawal
certain qualified two-wheeled plug-in electric vehicles
announcement was published by the IRS. The IRS will not
discussed under
What's
New, earlier.
attempt to collect any understatement of tax liability
The credit attributable to depreciable property (vehicles
attributable to reliance on the certification as long as you
used for business or investment purposes) is treated as a
purchased the vehicle on or before the date the IRS
general business credit. Any credit not attributable to
published the withdrawal announcement.
depreciable property is treated as a personal credit.
The following requirements must be met to qualify for
the credit.
Partnerships and S corporations must file this form to
claim the credit. All other taxpayers are not required to
You are the owner of the vehicle. If the vehicle is
leased, only the lessor and not the lessee, is entitled to
complete or file this form if their only source for this credit
is a partnership or S corporation. Instead, they can report
the credit.
You placed the vehicle in service during your tax year.
this credit directly on line 1y in Part III of Form 3800,
General Business Credit.
The vehicle is manufactured primarily for use on public
streets, roads, and highways.
Qualified Plug-in Electric Drive Motor
The original use of the vehicle began with you.
Vehicle
You acquired the vehicle for use or to lease to others,
and not for resale.
This is a new vehicle with at least four wheels that:
You use the vehicle primarily in the United States.
Is propelled to a significant extent by an electric motor
Exception. If you are the seller of a qualified plug-in
that draws electricity from a battery that has a capacity of
electric drive motor vehicle or qualified two-wheeled
not less than 4 kilowatt hours and is capable of being
plug-in electric vehicle to a tax-exempt organization,
recharged from an external source of electricity, and
governmental unit, or a foreign person or entity, and the
Has a gross vehicle weight of less than 14,000 pounds.
use of that vehicle is described in section 50(b)(3) or (4),
Qualified Two-Wheeled Plug-in
you can claim the credit, but only if you clearly disclose in
Electric Vehicle
writing to the purchaser the amount of the tentative credit
allowable for the vehicle (from line 11 of Form 8936).
This is a new vehicle with two wheels that:
Treat all vehicles eligible for this exception as business/
Is capable of achieving a speed of 45 miles per hour or
investment property. If you elect to claim the credit, you
greater,
must reduce cost of goods sold by the amount you
entered on line 11 for that vehicle.
Jan 09, 2020
Cat. No. 67912V
2019
Department of the Treasury
Internal Revenue Service
Instructions for Form 8936
Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified
Two-Wheeled Plug-in Electric Vehicles)
Section references are to the Internal Revenue Code
Is propelled to a significant extent by an electric motor
unless otherwise noted.
that draws electricity from a battery that has a capacity of
not less than 2.5 kilowatt hours and is capable of being
Future Developments
recharged from an external source of electricity, and
Has a gross vehicle weight of less than 14,000 pounds.
For the latest information about developments related to
Form 8936 and its instructions, such as legislation
Certification and Other Requirements
enacted after they were published, go to
IRS.gov/
Generally, you can rely on the manufacturer’s (or, in the
Form8936.
case of a foreign manufacturer, its domestic distributor’s)
What's New
certification to the IRS that a specific make, model, and
model year vehicle qualifies for the credit and, if
The credit for qualified two-wheeled plug-in electric
applicable, the amount of the credit for which it qualifies.
vehicles has been extended to cover vehicles acquired in
The manufacturer or domestic distributor should be able
2018, 2019, and 2020.
to provide you with a copy of the IRS letter acknowledging
Line 4b. Line 4b is used to reduce the credit for certain
the certification of the vehicle.
vehicles purchased after 2018. See
Credit Phaseout
and
If, however, the IRS publishes an announcement that
Line
4b.
the certification for any specific make, model, and model
General Instructions
year vehicle has been withdrawn, you cannot rely on the
certification for such a vehicle purchased after the date of
publication of the withdrawal announcement.
Purpose of Form
If you purchased a vehicle and its certification was
Use Form 8936 to figure your credit for qualified plug-in
withdrawn on or after the date of purchase, you can rely
electric drive motor vehicles you placed in service during
on such certification even if you had not placed the vehicle
your tax year. Also use Form 8936 to figure your credit for
in service or claimed the credit by the date the withdrawal
certain qualified two-wheeled plug-in electric vehicles
announcement was published by the IRS. The IRS will not
discussed under
What's
New, earlier.
attempt to collect any understatement of tax liability
The credit attributable to depreciable property (vehicles
attributable to reliance on the certification as long as you
used for business or investment purposes) is treated as a
purchased the vehicle on or before the date the IRS
general business credit. Any credit not attributable to
published the withdrawal announcement.
depreciable property is treated as a personal credit.
The following requirements must be met to qualify for
the credit.
Partnerships and S corporations must file this form to
claim the credit. All other taxpayers are not required to
You are the owner of the vehicle. If the vehicle is
leased, only the lessor and not the lessee, is entitled to
complete or file this form if their only source for this credit
is a partnership or S corporation. Instead, they can report
the credit.
You placed the vehicle in service during your tax year.
this credit directly on line 1y in Part III of Form 3800,
General Business Credit.
The vehicle is manufactured primarily for use on public
streets, roads, and highways.
Qualified Plug-in Electric Drive Motor
The original use of the vehicle began with you.
Vehicle
You acquired the vehicle for use or to lease to others,
and not for resale.
This is a new vehicle with at least four wheels that:
You use the vehicle primarily in the United States.
Is propelled to a significant extent by an electric motor
Exception. If you are the seller of a qualified plug-in
that draws electricity from a battery that has a capacity of
electric drive motor vehicle or qualified two-wheeled
not less than 4 kilowatt hours and is capable of being
plug-in electric vehicle to a tax-exempt organization,
recharged from an external source of electricity, and
governmental unit, or a foreign person or entity, and the
Has a gross vehicle weight of less than 14,000 pounds.
use of that vehicle is described in section 50(b)(3) or (4),
Qualified Two-Wheeled Plug-in
you can claim the credit, but only if you clearly disclose in
Electric Vehicle
writing to the purchaser the amount of the tentative credit
allowable for the vehicle (from line 11 of Form 8936).
This is a new vehicle with two wheels that:
Treat all vehicles eligible for this exception as business/
Is capable of achieving a speed of 45 miles per hour or
investment property. If you elect to claim the credit, you
greater,
must reduce cost of goods sold by the amount you
entered on line 11 for that vehicle.
Jan 09, 2020
Cat. No. 67912V
More information. For details, see the following.
Tesla. Enter the following percentage if the vehicle was
Section 30D.
manufactured by Tesla.
Notice 2009-89, 2009-48 I.R.B. 714, available at
100% if you purchased it before January 1, 2019.
IRS.gov/irb/2009-48_IRB#NOT-2009-89.
50% if you purchased it after December 31, 2018, but
Notice 2013-67, 2013-45 I.R.B. 470, available at
before July 1, 2019.
IRS.gov/irb/2013-45_IRB#NOT-2013-67.
25% if you purchased it after June 30, 2019, but before
Notice 2016-51, 2016-37 I.R.B. 344, available at
January 1, 2020.
IRS.gov/irb/2016-37_IRB#NOT-2016-51.
The credit is not available for Tesla vehicles purchased
after December 31, 2019.
Credit Phaseout
General Motors. Enter the following percentage if the
The credit for vehicles with at least four wheels is subject
vehicle was manufactured by General Motors.
to a phaseout (reduction) once the vehicle manufacturer
100% if you purchased it before April 1, 2019.
(or, for a foreign manufacturer, its U.S. distributor) sells
50% if you purchased it after March 31, 2019, but
200,000 of these vehicles to a retailer for use in the United
before October 1, 2019.
States after 2009. The phaseout begins in the second
25% if you purchased it after September 30, 2019, but
calendar quarter after the quarter in which the 200,000th
before April 1, 2020.
vehicle was sold. Then the phaseout allows 50% of the full
credit for 2 quarters, 25% of the full credit for 2 additional
The credit is not available for General Motors vehicles
quarters, and no credit thereafter.
purchased after March 31, 2020.
Basis Reduction
Line 5
Unless you elect not to claim the credit, you may have to
Enter the percentage of business/investment use.
reduce the basis of each vehicle by the sum of the
Enter 100% if the vehicle is used solely for business
amounts entered on lines 11 and 18 for that vehicle.
purposes or you are claiming the credit as the seller of the
Coordination With Other Credits
vehicle.
A vehicle that qualifies for the qualified plug-in electric
If the vehicle is used for both business purposes and
drive motor vehicle credit on this form cannot be used to
personal purposes, determine the percentage of business
claim the alternative motor vehicle credit on Form 8910.
use by dividing the number of miles the vehicle is driven
Recapture of Credit
during the year for business purposes or for the
production of income (not to include any commuting
If the vehicle no longer qualifies for the credit, you may
mileage) by the total number of miles the vehicle is driven
have to recapture part or all of the credit. For details, see
for all purposes. Treat vehicles used by your employees
section 30D(f)(5).
as being used 100% for business/investment purposes if
the value of personal use is included in the employees’
Specific Instructions
gross income, or the employees reimburse you for the
personal use. If you report the amount of personal use of
Line 2
the vehicle in your employee’s gross income and withhold
the appropriate taxes, enter “100%” for the percentage of
Enter the vehicle's vehicle identification number (VIN) on
business/investment use.
line 2. The VIN of a vehicle can be obtained from the
registration, title, proof of insurance, or actual vehicle.
If during the tax year you convert property used solely
Generally, the VIN is 17 characters made up of numbers
for personal purposes to business/investment use (or vice
and letters.
versa), figure the percentage of business/investment use
Line 4a
only for the number of months you use the property in your
business or for the production of income. Multiply that
For two-wheeled vehicles, enter the cost of the vehicle
percentage by the number of months you use the property
you entered on line 1. For vehicles with at least four
in your business or for the production of income and
wheels, enter the credit allowable for the year, make, and
divide the result by 12. For example, if you converted a
model of vehicle you entered on line 1. You can generally
vehicle to 50% business use for the last 6 months of the
rely on the manufacturer’s (or domestic distributor’s)
year, you would enter 25% on line 5 (50% multiplied by 6
certification to the IRS of the credit allowable as explained
divided by 12).
above.
For more information, see Pub. 463, Travel, Gift, and
Tentative credit amounts acknowledged by the IRS are
Car Expenses.
available at
IRS.gov/Businesses/Qualified-Vehicles-
Line 7
Acquired-After-12-31-2009. Or you can visit IRS.gov and
search for “Plug-in Electric Drive Vehicle Credit (IRC
Enter any section 179 expense deduction you claimed for
30D).”
the vehicle from Part I of Form 4562, Depreciation and
Line 4b
Amortization.
Line 13
Enter 100% unless the vehicle was a vehicle with at least
four wheels manufactured by Tesla or General Motors
Enter total qualified plug-in electric drive motor vehicle
(Chevrolet Bolt EV, etc.).
credits from:
-2-
Instructions for Form 8936 (2019)
Schedule K-1 (Form 1065), Partner's Share of Income,
You are not required to provide the information
Deductions, Credits, etc., box 15 (code P); and
requested on a form that is subject to the Paperwork
Schedule K-1 (Form 1120-S), Shareholder's Share of
Reduction Act unless the form displays a valid OMB
Income, Deductions, Credits, etc., box 13 (code P).
control number. Books or records relating to a form or its
instructions must be retained as long as their contents
Partnerships and S corporations report the above credits
may become material in the administration of any Internal
on line 13. All other filers figuring a separate credit on
Revenue law. Generally, tax returns and return
earlier lines also report the above credits on line 13. All
information are confidential, as required by section 6103.
others not using earlier lines to figure a separate credit
can report the above credits directly on Form 3800, Part
The time needed to complete and file this form will vary
III, line 1y.
depending on individual circumstances. The estimated
Line 21
burden for individual and business taxpayers filing this
form is approved under OMB control number 1545-0074
Enter the total, if any, credits from Schedule 3 (Form 1040
and 1545-0123 and is included in the estimates shown in
or 1040-SR), lines 1 through 4 (or Form 1040-NR, lines 46
the instructions for their individual and business income
through 48); Form 5695, line 30; Form 8910, line 15; and
tax return. The estimated burden for all other taxpayers
Schedule R, line 22.
who file this form is shown below.
Line 23
Recordkeeping
4 hr., 4 min.
. . . . . . . . . . . . . . . . . . .
If you cannot use part of the personal portion of the credit
Learning about the law or the form
35 min.
. . . . .
because of the tax liability limit, the unused credit is lost.
Preparing and sending the form to the
41 min.
The unused personal portion of the credit cannot be
IRS
. . . . . . . . . . . . . . . . . . . . . . . . . . .
carried back or forward to other tax years.
Paperwork Reduction Act Notice. We ask for the
If you have comments concerning the accuracy of
information on this form to carry out the Internal Revenue
these time estimates or suggestions for making this form
laws of the United States. You are required to give us the
simpler, we would be happy to hear from you. See the
information. We need it to ensure that you are complying
instructions for the tax return with which this form is filed.
with these laws and to allow us to figure and collect the
right amount of tax.
-3-
Instructions for Form 8936 (2019)
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