Instructions for Form 8936

2025

Instructions for Form 8936

Clean Vehicle Credits (and Schedule A (Form 8936), Clean Vehicle Credit Amount)

Section references are to the Internal Revenue Code

unless otherwise noted.

Future Developments

For the latest information about developments related to

Form 8936 and its instructions, such as legislation

enacted after they were published, go to IRS.gov/

Form8936.

What’s New

Clean vehicles acquired after September 30, 2025.

Taxpayers cannot claim clean vehicle credits for new,

previously owned, or commercial clean vehicles that they

acquired after September 30, 2025. See New Clean

Vehicle Credit, Previously Owned Clean Vehicle Credit,

and Qualified Commercial Clean Vehicle Credit, later.

For purposes of sections 25E, 30D, and 45W, a vehicle

is “acquired” as of the date a written binding contract is

entered into and a payment has been made. A payment

includes a nominal down payment or a vehicle trade-in.

For general information on modifications to sections

25E, 30D, and 45W under P.L. 119-21, see IRS.gov/

EnergyCreditFAQs.

Reminders

Vehicles placed in service beginning January 1,

2024. For vehicles placed in service after December 31,

2023, the seller must file the seller report through the IRS

Energy Credits Online (ECO) portal available at IRS.gov/

credits-deductions/energy-credits-online.

Transfer of new clean vehicle credit. For vehicles

placed in service after 2023, you may be able to transfer

the credit amount to the dealer at the time of sale and

receive an immediate financial benefit in place of a tax

credit claimed on your tax return. If you elect to transfer

the credit, you must file Form 8936 and Schedule A (Form

8936) with your return for the tax year in which the vehicle

was placed in service. For details, go to IRS.gov/

CleanVehicles.

Transfer of previously owned clean vehicle credit.

For vehicles placed in service after 2023, you may be able

to transfer the credit amount to the dealer at the time of

sale and receive an immediate financial benefit in place of

a tax credit claimed on your tax return. If you elect to

transfer the credit, you must file Form 8936 and

Schedule A (Form 8936) with your return for the tax year in

which the vehicle was placed in service. For details, go to

IRS.gov/CleanVehicles.

Oct 14, 2025

General Instructions

Purpose of Form

Use Form 8936 and Schedule A (Form 8936) to figure the

following credits for clean vehicles you placed in service

during your tax year.

• New clean vehicle credit.

• Previously owned clean vehicle credit.

• Qualified commercial clean vehicle credit.

Caution: You must file Form 8936 and Schedule A (Form

8936) if you purchased a new or used clean vehicle from a

registered dealer and reduced the amount you paid at the

time of sale by transferring the credit to the dealer.

New Clean Vehicle Credit

Use Parts I, II, and III of Form 8936 to claim the credit for

new clean vehicles. The credit is equal to the sum of the

credit amounts figured for each new clean vehicle you

placed in service during your tax year.

Use Parts I, II, and III of Schedule A (Form 8936) to

figure the clean vehicle credit amount for each new clean

vehicle you placed in service during your tax year.

The part of the credit attributable to business/

investment use of a new clean vehicle is treated as a

general business credit. Any part of the credit not

attributable to business/investment use is treated as a

personal credit.

Partnerships and S corporations must file this form to

claim the credit. All other taxpayers are not required to

complete or file this form if their only source for this credit

is a partnership or S corporation. Instead, they can report

this credit directly on line 1y in Part III of Form 3800,

General Business Credit.

Caution: You cannot claim the new clean vehicle credit

for any vehicle acquired after September 30, 2025.

New clean vehicle defined. This is a new vehicle with at

least four wheels placed in service after 2022 that:

• Is propelled to a significant extent by an electric motor

that draws electricity from a battery that has a capacity of

not less than 7 kilowatt hours and is capable of being

recharged from an external source of electricity;

• Is manufactured primarily for use on public streets,

roads, and highways;

• Has a gross vehicle weight rating (GVWR) of less than

14,000 pounds;

• Had its final assembly within North America;

• Has a manufacturer’s suggested retail price of not more

than $55,000 ($80,000 for a van, sport utility vehicle

(SUV), or pickup truck); and

Instructions for Form 8936 (2025) Catalog Number 67912V

Department of the Treasury Internal Revenue Service www.irs.gov

• Meets certain additional requirements discussed under

New Clean Vehicle Certification and Other Requirements,

later.

• Additional information is required if you transferred the

credit to the dealer. See Regulations section 1.30D-5 for

credit transfer rules.

Note: The battery that a new clean vehicle draws the

significant portion of its electricity from must meet the

critical mineral and battery component requirements in

section 30D(e) for the calendar year the vehicle is placed

in service, and it does not contain battery components

manufactured or assembled by a Foreign Entity of

Concern (FEOC).

Certain new qualified fuel cell motor vehicles

(discussed next) may also be treated as new clean

vehicles.

The following additional requirements must be met to

qualify you for the credit.

• You are the owner of the vehicle. If the vehicle is leased,

only the lessor and not the lessee is entitled to the credit.

• You placed the vehicle in service during the tax year.

• The original use of the vehicle began with you.

• You acquired the vehicle for use or to lease to others,

and not for resale.

New qualified fuel cell motor vehicle. This is a new

vehicle with at least four wheels placed in service after

2022 that:

• Is propelled by power derived from one or more cells

that convert chemical energy directly into electricity by

combining oxygen with hydrogen fuel, and satisfies the

requirements of section 30B(b)(3);

• Is manufactured primarily for use on public streets,

roads, and highways;

• Had its final assembly within North America;

• Has a manufacturer’s suggested retail price of not more

than $55,000 ($80,000 for a van, SUV, or pickup truck);

and

• Meets certain additional requirements discussed under

New Clean Vehicle Certification and Other Requirements,

later.

New Clean Vehicle Certification and

Other Requirements

Generally, for new clean vehicles (other than qualified fuel

cell motor vehicles), the vehicle must have been

manufactured by a qualified manufacturer. A qualified

manufacturer is a manufacturer who has entered into a

written agreement with the IRS under which the

manufacturer agrees to make periodic written reports to

the IRS providing vehicle identification numbers (VINs)

and other information about their new clean vehicles.

Information and certifications contained in these reports

will help identify which vehicles qualify you for the new

clean vehicle credit. Manufacturers of qualified fuel cell

vehicles are also encouraged to file these reports.

Tip: Information about new clean vehicles reported by

qualified manufacturers to the IRS is available at

Fueleconomy.gov/feg/tax2023.shtml

The dealer/seller of a new clean vehicle (including a

qualified fuel cell vehicle) must provide a report to you and

the IRS providing information required to claim the credit,

including the following.

• Your name and taxpayer identification number (TIN).

• The vehicle’s VIN.

• The battery capacity of the vehicle.

• Verification that the original use of the vehicle begins

with you.

• The maximum new clean vehicle credit allowable for the

vehicle.

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Caution: You cannot claim the clean vehicle credit for any

vehicle acquired after September 30, 2025.

• You use the vehicle primarily in the United States. If you

use the vehicle primarily outside the United States, see

section 168(g)(4) for a list of exceptions that may apply.

• Your modified adjusted gross income (AGI) for 2024 or

2025 is not more than $150,000 ($300,000 if married filing

jointly or a qualifying surviving spouse; $225,000 if head

of household). Use Part I of Form 8936 to figure your

modified AGI. For additional information, see Part I under

Specific Instructions for Form 8936, later.

Credit transfer election. You elect to transfer the credit

of a new clean vehicle after December 31, 2024, to an

eligible entity (a registered dealer) in exchange for a

financial benefit (that is, reduced final cost) from the

eligible entity equal to the amount of the credit, whether in

cash, in the form of a partial payment, or as a down

payment for the purchase of such vehicle. The tax credit

can be applied at the point of sale to reduce the cost of

the purchase by the amount of the credit. You must report

the transfer on your tax return and attach a Form 8936 and

Schedule A (Form 8936) to reconcile the advance

payment of the credit and your eligibility for the credit.

Eligible taxpayers who purchase an eligible vehicle may

choose to wait and claim the tax credit on their return

instead of transferring a new clean vehicle tax credit.

Basis reduction. You must reduce the basis of each

vehicle by the amount entered on line 9 of Schedule A

(Form 8936) for that vehicle if:

1. You claim the credit for that vehicle, or

2. You transferred the credit to the dealer at the time of

sale for that vehicle.

Coordination with other credits. A vehicle that anyone

has claimed for the new clean vehicle credit in Part II of

Form 8936 cannot be used to claim the qualified

commercial clean vehicle credit in Part V of Form 8936. If

your vehicle qualifies for both credits, you may choose

which of those credits to claim.

Repayment of credit. If you purchased a new clean

vehicle from a registered dealer and reduced the amount

you paid at the time of sale by transferring the credit to the

dealer and you no longer qualify for the credit when you

file your tax return, you must repay the amount of the

credit that you transferred to the dealer.

Recapture of credit. If the vehicle no longer qualifies for

the credit, you may have to recapture part or all of the

credit. See Regulations section 1.30D-4.

Instructions for Form 8936 (2025)

More information. For details, see the following.

• Section 30D.

• IRS.gov/CleanVehicles.

• Meets certain additional requirements discussed under

Previously Owned Clean Vehicle Certification and Other

Requirements, later.

Use Parts I and IV of Form 8936 to claim the credit for

previously owned clean vehicles. The credit is equal to the

lesser of $4,000 or 30% of the sales price of a previously

owned clean vehicle you acquired and placed in service

during your tax year.

Generally, for previously owned clean vehicles (other than

qualified fuel cell motor vehicles), the vehicle must have

been manufactured by a qualified manufacturer. A

qualified manufacturer is a manufacturer who has entered

into a written agreement with the IRS under which the

manufacturer agrees to make periodic written reports to

the IRS providing vehicle identification numbers (VINs)

and other information about their previously owned clean

vehicles. Information and certifications contained in these

reports will help identify which vehicles qualify you for the

previously owned clean vehicle credit. Manufacturers of

qualified fuel cell vehicles are also encouraged to file

these reports.

Previously Owned Clean Vehicle

Credit

Use Parts I and IV of Schedule A (Form 8936) to figure

the previously owned clean vehicle credit amount.

Previously owned clean vehicle defined. This is a

previously owned vehicle with at least four wheels that you

acquired and placed in service after 2022 that:

• Has a model year that is at least 2 years earlier than the

calendar year in which you acquire the vehicle;

• Had its original use begin with a person other than you;

• Has a sales price that does not exceed $25,000;

• Was purchased from a dealer and was the first transfer

since August 16, 2022, to an individual eligible to claim

the credit;

• Is propelled to a significant extent by an electric motor

that draws electricity from a battery that has a capacity of

not less than 7 kilowatt hours and is capable of being

recharged from an external source of electricity;

• Is manufactured primarily for use on public streets,

roads, and highways;

• Has a gross vehicle weight rating (GVWR) of less than

14,000 pounds; and

• Meets certain additional requirements discussed under

Previously Owned Clean Vehicle Certification and Other

Requirements, later.

Caution: You cannot claim the previously owned clean

vehicle credit for any vehicle acquired after September 30,

2025.

Certain previously owned qualified fuel cell motor

vehicles (discussed next) may also be treated as

previously owned clean vehicles.

Previously owned qualified fuel cell motor vehicle.

This is a previously owned vehicle with at least four

wheels that you acquired and placed in service after 2022

that:

• Has a model year that is at least 2 years earlier than the

calendar year in which you acquire the vehicle;

• Had its original use begin with a person other than you;

• Has a sales price that does not exceed $25,000;

• Was purchased from a dealer and was the first transfer

since August 16, 2022, to an individual eligible to claim

the credit;

• Is propelled by power derived from one or more cells

that convert chemical energy directly into electricity by

combining oxygen with hydrogen fuel;

• Is manufactured primarily for use on public streets,

roads, and highways;

• Has a GVWR of less than 14,000 pounds and satisfies

the requirements of section 30B(b)(3); and

Instructions for Form 8936 (2025)

Previously Owned Clean Vehicle

Certification and Other Requirements

Tip: Information about previously owned clean vehicles

reported by qualified manufacturers to the IRS is available

at Fueleconomy.gov/feg/taxused.shtml.

The dealer/seller of a previously owned clean vehicle

(including a qualified fuel cell vehicle) must provide a

report to you and the IRS providing information required to

claim the credit, including the following.

• Your name and taxpayer identification number (TIN).

• The vehicle’s VIN.

• The battery capacity of the vehicle.

• The sales price.

• The maximum previously owned clean vehicle credit

allowable for the vehicle.

• Additional information is required if you transferred the

credit to the dealer. See Regulation section 1.25E-3 for

credit transfer rules.

The following additional requirements must be met to

qualify you for the credit.

• You are an individual.

• You are the owner of the vehicle. If the vehicle is leased,

only the lessor and not the lessee is entitled to the credit.

• You placed the vehicle in service during the tax year.

• You acquired the vehicle for use, and not for resale.

Caution: You cannot claim the previously owned clean

vehicle credit for any vehicle acquired after September 30,

2025.

• You can’t be claimed as a dependent by another

taxpayer.

• You have not claimed another previously owned clean

vehicle credit in the 3 years before the purchase date.

• You use the vehicle primarily in the United States. If you

use the vehicle primarily outside the United States, see

section 168(g)(4) for a list of exceptions that may apply.

• Your modified adjusted gross income (AGI) for 2024 or

2025 is not more than $75,000 ($150,000 if married filing

jointly or a qualifying surviving spouse; $112,500 if head

of household). Use Part I of Form 8936 to figure your

modified AGI.

Credit transfer election. You elect to transfer the credit

for a previously owned clean vehicle after December 31,

2024, to an eligible entity (a registered dealer) in

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exchange for a financial benefit (that is, reduced final cost)

from the eligible entity equal to the amount of the credit,

whether in cash, in the form of a partial payment, or as a

down payment for the purchase of such vehicle. The tax

credit can be applied at the point of sale to reduce the

cost of the purchase by the amount of the credit. You must

report the transfer on your tax return and attach a Form

8936 and Schedule A (Form 8936) to reconcile the

advance payment of the credit and your eligibility for the

credit.

Eligible taxpayers who purchase an eligible vehicle may

choose to wait and claim the tax credit on their return

instead of transferring a previously owned clean vehicle

tax credit.

Basis reduction. You must reduce the basis of each

vehicle by the amount entered on line 17 of Schedule A

(Form 8936) for that vehicle if:

1. You claim the credit for that vehicle, or

2. You transferred the credit to the dealer at the time of

sale for that vehicle.

Repayment of credit. If you purchased a previously

owned clean vehicle from a registered dealer and reduced

the amount you paid at the time of sale by transferring the

credit to the dealer and you no longer qualify for the credit

when you file your tax return, you must repay the amount

of the credit that you transferred to the dealer.

Recapture of credit. If the vehicle no longer qualifies for

the credit, you may have to recapture part or all of the

credit. See Regulations sections 1.25E-2 and 1.30D-4.

More information. For details, see the following.

• Section 25E.

• IRS.gov/CleanVehicles.

Qualified Commercial Clean Vehicle

Credit

Use Part V of Form 8936 to claim the credit for qualified

commercial clean vehicles. The credit is equal to the sum

of the credit amounts figured for each qualified

commercial clean vehicle you placed in service during

your tax year.

Use Parts I and V of Schedule A (Form 8936) to figure

the credit amount for each qualified commercial clean

vehicle you placed in service during your tax year.

Caution: You cannot claim the qualified commercial

clean vehicle credit for any vehicle acquired after

September 30, 2025.

Partnerships and S corporations must file this form to

claim the credit. All other taxpayers are not required to

complete or file this form if their only source for this credit

is a partnership or S corporation. Instead, they can report

this credit directly on line 1aa in Part III of Form 3800,

General Business Credit.

Credit amount. Generally, the credit amount for each

qualified commercial clean vehicle is equal to the lesser

of:

• 15% of the basis of the vehicle (30% for a vehicle not

powered by a gasoline or diesel internal combustion

engine), or

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• The incremental cost of the vehicle.

Incremental cost. The incremental cost of any qualified

commercial clean vehicle is an amount equal to the

excess of the purchase price for the vehicle over the price

of a comparable vehicle. A comparable vehicle is a vehicle

powered solely by a gasoline or diesel internal combustion

engine and which is comparable in size and use to such

vehicle.

2025 safe harbor. Notice 2025-9 provides a safe

harbor regarding the incremental cost of certain qualified

commercial clean vehicles (including qualified fuel cell

motor vehicles) placed in service in calendar year 2025.

The IRS will accept the use of $7,500 as the incremental

cost for all street vehicles (other than compact car plug-in

hybrid electric vehicles (PHEVs)) with a gross vehicle

weight rating (GVWR) of less than 14,000 pounds to figure

the credit amount for vehicles placed in service during

calendar year 2025. For compact car PHEVs and certain

vehicles with a GVWR of 14,000 pounds or more, the IRS

will accept the incremental cost for the appropriate vehicle

class determined by the Department of Energy (DOE)

2025 Incremental Purchase Cost Methodology and

Results for Clean Vehicles. For details, see Notice 2025-9,

available at IRS.gov/irb/2025-06_IRB#NOT-2025-9.

Maximum per vehicle credit amount. The credit

amount is limited to $7,500 ($40,000 for a vehicle with a

GVWR of 14,000 pounds or more).

Qualified commercial clean vehicle. This is a vehicle

acquired and placed in service after 2022 that:

• Is propelled to a significant extent by an electric motor

that draws electricity from a battery that has a capacity of

not less than 15 kilowatt hours (7 kilowatt hours for a

vehicle with a GVWR of less than 14,000 pounds) and is

capable of being recharged from an external source of

electricity;

• Is either manufactured primarily for use on public

streets, roads, and highways, or is mobile machinery, as

defined in section 4053(8) (including vehicles that are not

designed to perform a function of transporting a load over

public highways);

• Is of a character subject to the allowance for

depreciation (except for vehicles not subject to a lease

placed in service by certain tax-exempt and governmental

entities); and

• Meets certain additional requirements discussed under

Qualified Commercial Clean Vehicle Certification and

Other Requirements, later.

Certain qualified fuel cell motor vehicles (discussed

next) may also be treated as qualified commercial clean

vehicles.

Qualified fuel cell motor vehicle. This is a vehicle

acquired and placed in service after 2022 that:

• Is propelled by power derived from one or more cells

that convert chemical energy directly into electricity by

combining oxygen with hydrogen fuel;

• Is either manufactured primarily for use on public

streets, roads, and highways, or is mobile machinery, as

defined in section 4053(8) (including vehicles that are not

designed to perform a function of transporting a load over

public highways);

Instructions for Form 8936 (2025)

• Is of a character subject to the allowance for

depreciation (except for vehicles not subject to a lease

placed in service by certain tax-exempt and governmental

entities); and

• Meets certain additional requirements discussed under

Qualified Commercial Clean Vehicle Certification and

Other Requirements, later.

Tax-Exempt and Governmental

Entities

Certain tax-exempt and governmental entities that

generally don’t benefit from income tax credits can elect to

treat the qualified commercial clean vehicle credit as a

payment of income tax. Resulting overpayments may

result in refunds.

An applicable entity is defined as any of the following.

• An organization exempt from the tax imposed by

subtitle A by reason of subchapter F of chapter 1 of

subtitle A;

• The government of any U.S. territory or political

subdivision or instrumentality thereof;

• Any state, the District of Columbia, or a political

subdivision or instrumentality thereof;

• The Tennessee Valley Authority;

• An Indian tribal government or subdivision or

instrumentality thereof;

• Any Alaska Native Corporation (as defined in section 3

of the Alaska Native Claims Settlement Act (43 U.S.C.

1602(m))); and

• Any corporation operating on a cooperative basis that is

engaged in furnishing electric energy to persons in rural

areas.

For details, see section 6417 and the related

regulations.

Tax-exempt and governmental entities making the

elective payment election for the qualified commercial

clean vehicle credit must file the following.

• Schedule(s) A (Form 8936), Clean Vehicle Credit

Amount.

• Form 8936, Clean Vehicle Credits.

• Form 3800, General Business Credit.

• Form 990-T, Exempt Organization Business Income Tax

Return, or other applicable income tax return.

The IRS has established a pre-filing registration

process that must be completed prior to electing payment

of the qualified commercial clean vehicle credit. To

register, go to IRS.gov/Credits-Deductions/Register-forElective-Payment-or-Transfer-of-Credits. See Pub. 5884,

Inflation Reduction Act (IRA) and CHIPS Act of 2022

(CHIPS) Pre-Filing Registration Tool, for more information.

Also see Registering for and Making Elective Payment

and Transfer Elections in the Instructions for Form 3800.

Qualified Commercial Clean Vehicle

Certification and Other Requirements

Generally, for qualified commercial clean vehicles, the

vehicle must have been manufactured by a qualified

manufacturer. A qualified manufacturer is a manufacturer

who has entered into a written agreement with the IRS

under which the manufacturer agrees to make periodic

written reports to the IRS providing vehicle identification

Instructions for Form 8936 (2025)

numbers (VINs) and other information about their qualified

commercial clean vehicles. Information and certifications

contained in these reports will help identify which vehicles

qualify you for the qualified commercial clean vehicle

credit.

The following additional requirements must be met to

qualify you for the credit.

• You are the owner of the vehicle. If the vehicle is leased,

only the lessor and not the lessee is entitled to the credit.

• You placed the vehicle in service during the tax year.

• You acquired the vehicle for use or to lease to others,

and not for resale.

Caution: You cannot claim the qualified commercial

clean vehicle credit for any vehicle acquired after

September 30, 2025.

• You use the vehicle primarily in the United States. If you

use the vehicle primarily outside the United States, see

section 168(g)(4) for a list of exceptions that may apply.

Basis reduction. You must reduce the basis of each

vehicle by the amount entered on line 26 of Schedule A

(Form 8936) for that vehicle if:

1. You claim the credit for that vehicle, or

2. You transferred the credit to the dealer at the time of

sale for that vehicle.

Coordination with other credits. A vehicle that anyone

has claimed for the new clean vehicle credit in Part II of

Form 8936 cannot be used to claim the qualified

commercial clean vehicle credit in Part V of Form 8936. If

your vehicle qualifies for both credits, you may choose

which of those credits to claim.

Recapture of credit. If the vehicle no longer qualifies for

the credit, you may have to recapture part or all of the

credit. For details, see Regulations sections 1.30D-4 and

section 45W(d)(1).

More information. For details, see the following.

• Section 45W.

• IRS.gov/CleanVehicles.

Specific Instructions for Form

8936

Part I—Modified Adjusted Gross

Income (MAGI) Amount

Lines 1a and 3a

Enter your modified AGI for the current and prior tax

year. For 2025, there is a limitation on the modified AGI. If

there was a change from your filing status on your 2024

tax return, see Special rule for change in filing status, later

in this section.

There are specific instructions for estates and trusts.

For additional information, see Estates and trusts, later in

this section.

Special rule for change in filing status. If your filing

status changes between the preceding year and the

current year, you may claim the new clean vehicle credit

and previously owned clean vehicle credit if your modified

AGI is less than or equal to the threshold applicable to

5

your filing status for the preceding year or current year.

Note that, except in the case of pass-through entities, the

credit may be claimed on only one tax return (including on

a joint return filed by two spouses), even if the vehicle is

placed in service by multiple taxpayers.

For example, a newly married couple jointly purchases

and places in service a new clean vehicle that qualifies for

the credit and puts both of their names on the title. The

couple files separate federal income tax returns by using

the married filing separately filing status for the year they

purchase the new clean vehicle. Because the spouses are

filing two returns and not one joint return, only one spouse

may claim the credit with respect to the new clean vehicle

on that spouse’s respective return, and the other spouse

may not claim any amount of the credit with respect to that

new clean vehicle. The spouse that claims the credit must

be the same spouse listed on the seller report. In the year

that the spouses purchase the vehicle, the spouse listed

on the seller report claims the credit with a modified AGI of

$200,000, which exceeds the threshold applicable to the

current year for married filing separately filing status

($150,000). But the spouse claiming the credit had a

modified AGI in the prior year of $140,000 and a filing

status of single ($150,000 threshold), so that spouse

meets the modified AGI requirement to claim the credit.

Estates and trusts. An estate or nongrantor trust is

treated as having modified adjusted gross income above

the threshold amount for any year in which the estate or

nongrantor trust is not in existence. Enter $150,001 for

any year the estate or nongrantor trust was not in

existence. Otherwise, enter the amount from line 17 of

Form 1041.

Grantor trusts. For a new clean vehicle placed in service

by a grantor trust, the modified adjusted gross income

limitation applies based on the modified adjusted gross

income of the grantor or other deemed owner of the trust,

and not the modified adjusted gross income of the trust or

any beneficiary of the trust other than the grantor or other

deemed owner.

Caution: The modified adjusted gross income limitation

does not apply in the case of a new clean vehicle placed

in service by a corporation or by a taxpayer that is not an

individual, estate, trust, or entity.

If a new clean vehicle is placed in service by a

partnership or an S corporation, and the new clean vehicle

credit is claimed by individuals who are direct or indirect

partners of that partnership or shareholders of that S

corporation, the modified AGI limitation applies to those

partners or shareholders.

Part II—Credit for Business/

Investment Use Part of New Clean

Vehicles

Line 7

Enter the total new clean vehicle credits from:

• Schedule K-1 (Form 1065), Partner’s Share of Income,

Deductions, Credits, etc., box 15 (code AY); and

• Schedule K-1 (Form 1120-S), Shareholder’s Share of

Income, Deductions, Credits, etc., box 13 (code AY).

6

Partnerships and S corporations report the above

credits on line 7. All other filers figuring a separate credit

on line 6 also report the above credits on line 7. All others

not using line 6 to figure a separate credit can report the

above credits directly on Form 3800, Part III, line 1y.

Part III—Credit for Personal Use Part

of New Clean Vehicles

Tip: A taxpayer claiming a credit amount for the personal

use part of a new clean vehicle must fill out Part II, even if

they are not claiming a credit amount for business/

investment use.

Line 11

Enter the total, if any, credits from Schedule 3 (Form

1040), lines 1 through 4, 5b, 6d, 6I, and 6m.

Line 13

If you cannot use part of the personal portion of the credit

because of the tax liability limit, the unused credit is lost.

The unused personal portion of the credit cannot be

carried back or forward to other tax years.

Part IV—Credit for Previously Owned

Clean Vehicles

Line 16

Enter the total, if any, credits from Schedule 3 (Form

1040), lines 1 through 4, 5b, 6d, and 6I.

Line 18

If you cannot use part of the credit because of the tax

liability limit, the unused credit is lost. The unused credit

cannot be carried back or forward to other tax years.

Part V—Credit for Qualified

Commercial Clean Vehicles

Line 20

Enter the total qualified commercial clean vehicle credits

from:

• Schedule K-1 (Form 1065), Partner’s Share of Income,

Deductions, Credits, etc., box 15 (code AZ); and

• Schedule K-1 (Form 1120-S), Shareholder’s Share of

Income, Deductions, Credits, etc., box 13 (code AZ).

Partnerships and S corporations report the above

credits on line 20. All other filers reporting a separate

credit on line 19 also report the above credits on line 20.

All others not using line 19 to report a separate credit can

report the above credits directly on Form 3800, Part III,

line 1aa.

Specific Instructions for Schedule A

(Form 8936)

Part I—Vehicle Details

Line 2

You must enter the vehicle’s VIN on line 2. The VIN of a

vehicle can be obtained from the registration, title, proof of

Instructions for Form 8936 (2025)

insurance, or actual vehicle. Generally, the VIN is 17

characters made up of numbers and letters.

Line 3

The date the vehicle was placed in service is the date the

taxpayer takes possession of the vehicle.

Line 4

Answer “Yes” if you made a credit transfer election and

enter the amount of the credit transferred to the dealer at

the time of sale. You can find this amount on the seller’s

report. If directed by line 8a, 8d, 13a, or 13c, you must

report this amount on Schedule 2 (Form 1040), line 1b.

Line 5

See the definitions under New Clean Vehicle Credit,

earlier.

Tip: If your vehicle qualifies for this credit, as well as for

the qualified commercial clean vehicle credit, you can

choose which of those credits to claim.

Line 6

See the definitions under Previously Owned Clean Vehicle

Credit, earlier.

Line 7

See the definitions under Qualified Commercial Clean

Vehicle Credit, earlier.

Tip: If your vehicle qualifies for this credit as well as for

the new clean vehicle credit, you can choose which of

those credits to claim.

Part II—Credit Amount for Business/

Investment Use Part of New Clean

Vehicle

Lines 8c and 8d

For additional information, see Part I under Specific

Instructions for Form 8936, earlier.

For additional information, see Transfer of new clean

vehicle credit, earlier.

Line 9

Tentative credit amounts for new clean vehicles are

provided to the purchaser by the seller at the time the

vehicle is sold, and later forwarded to the IRS. Generally,

this amount will be the maximum credit amount listed in

the seller’s report for the vehicle. See New Clean Vehicle

Certification and Other Requirements, earlier.

Line 10

Enter the percentage of business/investment use.

Enter 100% if the vehicle is used solely for business

purposes.

Instructions for Form 8936 (2025)

If the vehicle is used for both business purposes and

personal purposes, determine the percentage of business

use by dividing the number of miles the vehicle was driven

during the year for business purposes or for the

production of income (not to include any commuting

mileage) by the total number of miles the vehicle was

driven for all purposes. Treat vehicles used by your

employees as being used 100% for business/investment

purposes if the value of personal use is included in the

employees’ gross income, or the employees reimburse

you for the personal use. If you report the amount of

personal use of the vehicle in your employee’s gross

income and withhold the appropriate taxes, enter “100%”

for the percentage of business/investment use.

If, during the tax year, you convert property used solely

for personal purposes to business/investment use (or vice

versa), figure the percentage of business/investment use

only for the number of months you use the property in your

business or for the production of income. Multiply that

percentage by the number of months you use the property

in your business or for the production of income and

divide the result by 12. For example, if you converted a

vehicle to 50% business use for the last 6 months of the

year, you would enter 25% on line 10 (50% multiplied by 6

divided by 12).

For more information, see Pub. 463, Travel, Gift, and

Car Expenses.

Part V—Credit Amount for Qualified

Commercial Clean Vehicle

Line 18b

See the exception discussed in the vehicle definitions

under Qualified Commercial Clean Vehicle Credit, earlier.

Line 18d

A qualified commercial clean vehicle (including a new

qualified fuel cell motor vehicle) is not required to be

powered in part solely by an electric motor to qualify for

the credit. The vehicle may also be powered in part by a

gasoline or diesel internal combustion engine. However, if

it is also powered by a gas or diesel engine, the credit rate

is reduced from 30% to 15%. For more information, see

the vehicle definitions earlier.

Line 19

For a discussion of cost or other basis, see Pub. 551,

Basis of Assets.

Line 20

Enter any section 179 expense deduction you claimed for

the vehicle from Part I of Form 4562, Depreciation and

Amortization.

Line 23

See Incremental cost, earlier.

7

Paperwork Reduction Act Notice. We ask for the information on this form and related schedule to carry out the

Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are

complying with 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

unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be

retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax

returns and return information are confidential, as required by section 6103.

The time needed to complete and file this form and related schedule will vary depending on individual circumstances.

The estimated burden for individual and business taxpayers filing this form is approved under OMB control number

1545-0074 and 1545-0123 and is included in the estimates shown in the instructions for their individual and business

income tax return. The estimated burden for all other taxpayers who file this form is shown below.

Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Learning about the law or the form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Preparing and sending the form to the IRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 hr., 15 min.

27 min.

1 hr., 25 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form and

related schedule simpler, we would be happy to hear from you. See the instructions for the tax return with which this form

is filed.

8

Instructions for Form 8936 (2025)