Still active for part of 2025 despite repeal
The credit expires for vehicles purchased on or after October 1, 2025.
📄 What Is Form 8936?
Form 8936, Clean Vehicle Credits, is used to calculate and claim three types of federal clean‑vehicle tax credits:
- 🔋 New Clean Vehicle Credit
- 🔁 Previously Owned Clean Vehicle Credit
- 🏢 Qualified Commercial Clean Vehicle Credit
⚠️ 2025 Credit Expiration (OBBBA Update)
📅 Signed July 4, 2025, the One Big Beautiful Bill Act (OBBBA) accelerates the expiration of the Clean Vehicle Credit to:
❌ September 30, 2025
To be eligible:
- 🛒 The vehicle must be purchased before October 1, 2025.
- 📆 Vehicles placed in service after 2022 may still qualify on 2022–2024 returns if all requirements are met.
🧍♂️ Who Qualifies for a Clean Vehicle Credit?
To claim the credit, the dealer must provide you and the IRS a seller’s report including:
- 🧾 Your name & TIN
- 🚗 Vehicle Identification Number (VIN)
- 🔋 Battery capacity
- 🆕 Verification original use begins with you (for new vehicles)
- 💲 Maximum credit allowable
- 🔄 Additional data if the credit is transferred to the dealer
✔️ Additional requirements for the taxpayer
You must:
- 🚘 Own (not lease) the vehicle
- 📅 Place it in service during the tax year
- 🏁 Acquire it for use, not resale
- 🇺🇸 Use it primarily in the United States
- 💰 Meet Modified AGI limits
💵 Income Limits
🆕 New Clean Vehicles – Modified AGI Caps
- 👩❤️👨 $300,000 – Married Filing Jointly / Surviving Spouse
- 👤 $225,000 – Head of Household
- 🧍 $150,000 – Single / MFS / other
🔁 Previously Owned Clean Vehicles – Modified AGI Caps
- 👩❤️👨 $150,000 – MFJ / Surviving Spouse
- 👤 $112,500 – HOH
- 🧍 $75,000 – All other filers
🚘 What Qualifies as a New Clean Vehicle?
A new clean vehicle must:
- 🔋 Have ≥ 7 kWh battery capacity
- 🔌 Be rechargeable from an external source
- 🛣️ Be designed for public road use
- ⚖️ Have GVWR < 14,000 lbs
- 🏭 Complete final assembly in North America
- 💲 Meet MSRP limits:
- ≤ $55,000 – cars
- ≤ $80,000 – SUVs, vans, pickups
🔁 What Qualifies as a Previously Owned Clean Vehicle?
Must meet ALL of these:
- 📅 Model year at least 2 years older than purchase year
- 🧑🔧 Original use began with someone else
- 💲 Sales price ≤ $25,000
- 🏷️ Purchased from a dealer
- 🔁 First resale since August 16, 2022
- 🔋 Battery of ≥ 7 kWh
- 🛣️ Made for public road use
- ⚖️ GVWR < 14,000 lbs
🏢 What Qualifies as a Clean Commercial Vehicle?
Must be:
- 🔋 Battery capacity:
- ≥ 15 kWh (GVWR ≥ 14,000 lbs)
- ≥ 7 kWh (GVWR < 14,000 lbs)
- 🔌 Rechargeable from external source
- 🛣️ For public road use or qualifying mobile machinery
- 📉 Depreciable property (except certain tax‑exempt/government uses)
💰 Credit Amounts
🆕 New Clean Vehicle Credit
💵 Up to $7,500
🔁 Previously Owned Clean Vehicle Credit
💵 Lesser of:
- $4,000
- 30% of sales price
🏢 Commercial Clean Vehicle Credit
💵 Up to $7,500
🔄 Credit Transfer (Point‑of‑Sale Option)
Starting January 1, 2024, you may transfer your clean vehicle credit directly to the dealer in exchange for:
- 💵 Cash
- 💸 Down payment assistance
- 📉 Immediate purchase price reduction
You may also choose NOT to transfer and simply claim the credit on your return.
🖥️ How to Enter Form 8936 in the Program
- 📁 Go to Federal
- 📄 Select Deductions (Select My Forms)
- 💳 Choose Credits
- 🚗 Select Form 8936 – Clean Vehicle Credit