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