The Alternative Motor Vehicle Credit expired for vehicles purchased after 2017. If you purchased a vehicle before 2017, but placed it in service during 2018, you may still be able to claim the credit for 2018. Only Partnerships and S Corps should use the 2019 Form 8910 to claim any alternative motor vehicle credit they receive from a fiscal year partnership or S Corp whose tax year began in 2018 (when the credit was still available to them) and ended in their 2019 tax year. The entity will issue you a K-1 with amounts in Box 15 (Code P) for form 1065 or Box 13 (code P) for form 1120-S.
To qualify for the Alternative Motor Vehicle Credit, the vehicle must be a Qualified Fuel Cell Vehicle. This is a vehicle propelled by power derived from one or more cells that convert chemical energy directly into electricity by combining oxygen with hydrogen fuel, and that meets certain additional requirements.
The following requirements must also be met:
- You are the owner of the vehicle. If the vehicle is leased, only the lessor-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. AND
- You use the vehicle primarily in the United States
Most of the time, you can rely on the manufacturer’s certification that a specific make, model, and model year vehicle qualifies for the credit and the maximum amount of the credit it qualifies for.
If, however, the IRS publishes an announcement that the certification for any specific make, model, and model year vehicle has been withdrawn, you cannot rely on the certification for such a vehicle purchased after the date of publication of the withdrawal announcement.
For more information, please review the instructions for Form 8910.