Use 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
Who qualifies for clean vehicle credits?
The dealer/seller of a clean vehicle (including qualified fuel cell vehicles) 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 credit allowed for the vehicle
- Additional information is required if you transferred the credit to the dealer. See section 1.30D-5 for credit transfer rules.
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, and not for resale.
- You use the vehicle primarily in the United States. If you use the vehicle primarily outside of the United States, see section 168(g)(5) for a list of exceptions that may apply.
For new clean vehicles your modified adjusted gross income (AGI) for 2023 or 2024 is no more than:
- $300,000 if married filing jointly or a qualifying surviving spouse
- $225,000 if head of household
- $150,000 for all other filing statuses
For previously owned clean vehicles, your modified adjusted gross income (AGI) for 2023 or 2024 is no more than:
- $150,000 if married filing jointly or qualified surviving spouse
- $112,000 if head of household
- $75,000 for all other filing statuses
What qualifies as a new clean vehicle?
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
What qualifies as a previously owned vehicle?
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, highways;
- Has a gross vehicle weight rating (GVWR) of less than 14,000 pounds
What qualifies as a clean commercial vehicle?
This is a vehicle acquired and placed in service after 2022 that:
- Is propelled to a significant extent by an electric motor which 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 the public highways);
- Is of a character subject to the allowance for depreciation (except vehicles not subject to a lease placed in service by certain tax exempt and governmental entities)
What is the credit amount?
- For new clean vehicles you may qualify for up to $7,500.
- For previously owned vehicles the credit is equal to the lessor of $4,000 or 30% of the sales price of a previously owned vehicle you acquired and placed in service during your tax year.
- For qualified commercial vehicles, the credit amount is limited to $7,500.
Credit Transfer Election
You can elect to transfer the credit of a new or previously-owned clean vehicle after December 31, 2023, 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 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.
Eligible taxpayers who purchase an eligible vehicle may choose to claim the tax credit on their return instead of transferring a new or previously-owned clean vehicle tax credit.
Program Entry
- Federal
- Deductions (select my forms)
- Credits
- Clean Vehicle Credits