Form 8834 Qualified Electric Vehicle Credit

2007 Form 8834
Qualified Electric Vehicle Credit
Purpose:

This is the first circulated draft of the 2007 Form 8834, Qualified
Electric Vehicle Credit. The major changes are discussed below.

TPCC Meeting:

None scheduled, but may be arranged if requested.

Instructions:

The 2007 Instructions for Form 8834 are included.

Prior Revisions:

The 2006 Form 8834 and its instructions can be viewed by clicking on the
following link:
http://www.irs.gov/pub/irs-pdf/f8834.pdf

Other Products:

Circulations of draft tax forms, instructions, notices, and publications are
posted at http://taxforms.web.irs.gov/draft_products.html.

Comments:

Please call, mail, email, or fax any comments by Monday, June 11, 2007.

Major Changes 2007 Form 8834
Qualified Electric Vehicle Credit
1.

All revision dates have been changed.

2.

Lines:
1 through 8 have been deleted
9 has been renumbered line 1
10 has been deleted
11 through 20 have been renumbered 2 through 11

3.

Line 16b (new line 7b) – the line references to the credits on Forms 1040 and
1040NR have been changed to reflect the 2007 forms.
(2/6/07 WRN F 1040, 1/29/07 WRN F 1040NR)

4.

Purpose of form has changed to reflect it is to be used by individuals receiving
Schedules K-1 or by those with passive activity income to be applied to a passive
activity credit.

All changes, except for 3, are based on the expiration of IRC 30.
There is one Adobe Note that some may not be able to read. It is on line 2 of the form.
It says the line 11 statement will be rewritten as line 1.
FROM:

EMAIL:

PHONE:

FAX:

ROOM:

[email protected]

202-293-2926

202-283-7008

C7-261

Paul. W. Miller
SE:W:CAR:MP:T:I:F

DATE:

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Form

I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8834, PAGE 1 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

8834

Action

Date

O.K. to print
Revised proofs
requested

OMB No. 1545-1374

Qualified Electric Vehicle Credit
©

Name(s) shown on return

2007

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Department of the Treasury
Internal Revenue Service

Signature

Attach to your tax return.
See instructions on back.

Attachment
Sequence No.

111

Identifying number

Part I
Tentative Credit
Caution. This credit applies only to vehicles placed in service before 2007
1

Qualified electric vehicle credits from pass-through entities:
If you are a:

Then enter the total electric vehicle credits from:

Shareholder

Schedule K-1 (Form 1120S), box 13, code D, E, or P

Partner

Schedule K-1 (Form 1065), box 15, code D, E, or P

%

1

2

Passive activity credits included on line 11 (see instructions)

2

3

Subtract line 2 from line 1

3

4

Passive activity credits allowed for 2007 (see instructions)

5

Tentative qualified electric vehicle credit. Add lines 3 and 4

Part II
6

Allowable Credit

4

©

Regular tax before credits.
● Individuals. Enter the amount from Form 1040, line 44, or Form 1040NR, line 41.
● Corporations. Enter the amount from Form 1120, Schedule J, line 2.
● Other filers. Enter the regular tax before credits from your return.

%

7 Credits that reduce regular tax before the qualified electric vehicle credit:
a Credits from Form 1040, lines 47 through 50 and 52 through 54, or
7a
Form 1040NR, lines 44 and 45 and 47 through 49
7b
b Foreign tax credit
7c
c American Samoa economic development credit (Form 5735)
d Add lines 7a through 7c
8

9

5

6

7d

Net regular tax. Subtract line 7d from line 6. If zero or less, do not file this form; you cannot
claim this credit

8

Tentative minimum tax (see instructions).
● Individuals. Enter the amount from Form 6251, line 33.
● Corporations. Enter the amount from Form 4626, line 12.
● Estates and trusts. Enter the amount from Form 1041, Schedule I, line 54.

9

%

10

Subtract line 9 from line 8. If zero or less, do not file this form; you cannot claim this credit

10

11

Qualified electric vehicle credit. Enter the smaller of line 5 or 10 here and on Form 1040, line
55; Form 1040NR, line 50; Form 1120, Schedule J, line 5b; Form 1041, Schedule G, line 2b; or
©
the appropriate line of your return. If line 10 is smaller than line 5, see instructions

11

For Paperwork Reduction Act Notice, see back of form.

Cat. No. 14953G

Form

8834

(2007)

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8834, PAGE 2 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8834 (2007)

General Instructions

Page

2

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Specific Instructions

Section references are to the Internal Revenue Code.

Line 2

Purpose of Form

Enter the amount of any credits included on line 11 that are from
a passive activity. Generally, a passive activity is a business
activity in which you did not materially participate. Rental
activities are generally passive activities, whether or not you
materially participate. See Form 8582-CR, Passive Activity Credit
Limitations, or Form 8810, Corporate Passive Activity Loss and
Credit Limitations, for details.

Use Form 8834 to claim the qualified electric vehicle credit as
shown on Schedule K-1 from a partnership or S corporation.
Form 8834 is also used to claim any passive activity credits.

Qualified Electric Vehicle

A qualified electric vehicle is any motor vehicle if all of the
following apply.

Line 4

● Manufactured primarily for use on public streets, roads, and
highways, and has at least four wheels.

Enter the qualified electric vehicle passive activity credits allowed
for 2007 from Form 8582-CR or Form 8810. See the instructions
for the applicable form for more information.

● Powered primarily by an electric motor drawing current from
rechargeable batteries, fuel cells, or other portable sources of
electrical current.
● Originally used by you.

● Acquired for your own use and not for resale.

Exceptions. The qualified electric vehicle credit does not apply
to vehicles that are:
● Operated exclusively on a rail or rails,
● Used primarily outside the United States,

Although you may not owe alternative minimum tax (AMT), you
generally must still figure the tentative minimum tax (TMT) to
figure your credit. For a small corporation exempt from the AMT
under section 55(e), enter -0-. Otherwise, complete and attach the
applicable AMT form or schedule and enter the TMT on line 9.

Line 11

● Used by a governmental unit or agency or any foreign person
or entity, or
● Used by a tax-exempt organization (other than a section 521
farmers’ cooperative) unless the property is used mainly in an
unrelated trade or business taxed under section 511.
See section 50(b) for details and other exceptions that may
apply.

CAUTION

Line 9

Alternative motor vehicles that are not powered
primarily by an electric motor are not qualified
electric vehicles. However, they may qualify for the
alternative motor vehicle credit. See Form 8910,
Alternative Motor Vehicle Credit, for more details.

Basis Reduction
Unless you elect not to take the credit, you must reduce the
basis of each vehicle by the amount of the credit entered on
line 7 for that vehicle.

Recapture of Credit
If the vehicle no longer qualifies for the credit within 3 years of
the date you placed it in service, you must recapture part or all
of the credit. The property will cease to qualify if it is changed in
either of the following ways.
1. The vehicle is modified so that it is no longer primarily
powered by electricity.
2. It becomes nonqualifying property.
Generally, no recapture occurs on the sale or other disposition
of the vehicle (including a disposition resulting from an accident
or other casualty). However, if the vehicle will be modified
afteryou dispose of it so that it no longer qualifies for the credit,
the credit may be subject to recapture.

If you cannot use part of the credit because of the tax liability
limit, the unused credit is lost. The unused or excess credit
cannot be carried back or forward to other tax years.
Paperwork Reduction Act Notice. We ask for the information
on this form 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 will vary
depending on individual circumstances. The estimated burden
for individual taxpayers filing this form is approved under OMB
control number 1545-0074 and is included in the estimates
shown in the instructions for their individual income tax return.
The estimated burden for all other taxpayers who file this form is
shown below.
Recordkeeping

5 hr., 58 min.

Learning about the law or the form

30 min.

Preparing, copying, assembling, and
sending the form to the IRS

37 min.

If you have comments concerning the accuracy of these time
estimates or suggestions for making this form simpler, we would
be happy to hear from you. See the instructions for the tax
return with which this form is filed.

For more information on the recapture of the credit, see
Regulations section 1.30-1(b).

Printed on recycled paper