Form 8936 Qualified Plug-In Electric Drive Motor Vehicle Credit

2009 Form 8936, Qualified Plug-in Electric Drive Motor Vehicle
Credit
Purpose: This is the first circulated draft of the 2009 Form 8936, for your review
and comments. This is a new form.
TPCC Meeting: None, but one may be arranged if requested.
Other Products: Circulations of draft tax forms, instructions, notices, and
publications are posted at: http://taxforms.web.irs.gov/Circulations/index.htm
Comments: Please email, fax, call, or mail any comments to me and the
reviewer, Bill Woolf, ([email protected]) by July 24, 2009.

Mike Cyrus, Tax Law Specialist

IRS SE:W:CAR:MP:T:B:C #50-26872
Main IR, Rm. 6526
Ph: 202.927.9545 (VM)
Fax: 202.622.3262
Email: [email protected]

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Form

I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8936, PAGE 1 of 4
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

8936

Date

Name(s) shown on return

Tentative Credit

Signature

O.K. to print
Revised proofs
requested

OMB No. 1545-XXXX

Qualified Plug-in Electric Drive Motor Vehicle Credit

Department of the Treasury
Internal Revenue Service

Part I

Action

2009

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Attach to your tax return.

Attachment
Sequence No.

125

Identifying number

Use a separate column for each vehicle. If you need more columns, use
additional Forms 8936 and include the totals on lines 6 and 10.

(a) Vehicle 1

(b) Vehicle 2

(c) Vehicle 3

1

1

Year, make, and model of vehicle

2

Enter date vehicle was placed in service (MM/DD/YYYY)

2

3

Tentative credit (see instructions for amount to enter)

3

/

/

/

/

/

/

Next: If you did NOT use your vehicle for business or investment purposes and did not have a credit from a partnership or
S corporation, skip Part II and go to Part III. All others, go to Part II.

Part II

4

Credit for Business/Investment Use Part of Vehicle

Business/investment use percentage (see instructions)

5a Multiply line 3 by line 4
b For vehicles acquired after 2009, enter the amount, if any,
reported for the vehicle on line 10 of Form 8834
c Subtract line 5b from line 5a

4

%

%

5a
5b
5c

6

Add columns (a) through (c) on line 5c

6

7

Qualified plug-in electric drive motor vehicle credit from partnerships and S corporations

7

8

Business/investment use part of credit. Add lines 6 and 7. Partnerships and S corporations,
report this amount on Schedule K; all others, report this amount on Form 3800, line 1y

8

Part III

%

Credit for Personal Use Part of Vehicle

9a If you skipped Part II, enter the amount from line 3. If you
completed Part II, subtract line 5c from line 3
b For vehicles acquired after 2009, enter the amount, if any,
reported for the vehicle on line 17 of Form 8834
c Subtract line 9b from line 9a

9a
9b
9c

10

Add columns (a) through (c) on line 9c

10

11

Enter the amount from Form 1040, line 46, or Form 1040NR, line 43

11

12

Enter the total, if any, of your credits from Form 1040, lines 47 through 50 (or Form 1040NR, lines
44 through 46); Form 5695, line 11; Form 8834, line 22; Form 8910, line 21; and
Schedule R, line 24

12

13

Subtract line 12 from line 11

13

14

Personal use part of credit. Enter the smaller of line 10 or line 13 here and on Form 1040, line 53,
or Form 1040NR, line 49. Check box c on that line and enter “8936” in the space next to that box.
If line 13 is smaller than line 10, see instructions

14

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 37751E

Form

8936

(2009)

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8936, PAGE 2 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
1
FLAT SIZE: 216 mm (8 ⁄ 2 ") x 279 mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

For tax years
beginning
after
Form 8936 (2009)
2008, use

General Instructions

qualified plug-in electric drive motor
Page

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.
If you purchased a vehicle and its certification was
withdrawn on or after the date of purchase, you can rely
on such certification even if you had not placed the
vehicle in service or claimed the credit by the date the
withdrawal announcement was published by the IRS.
The IRS will not attempt to collect any understatement
of tax liability attributable to reliance on the certification
as long as you purchased the vehicle on or before the
date the IRS published the withdrawal announcement.
In addition to certification, the following requirements
must be met to qualify 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 your 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.
Exception. If you are the seller of a new vehicle to a
tax-exempt organization, governmental unit, or a foreign
person or entity, and the use of that vehicle is described
in section 50(b)(3) or (4), you can claim the credit, but
only if you clearly disclose in writing to the purchaser the
amount of the tentative credit allowable for the vehicle
(from line 3 of Form 8936).

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Section references are to the Internal Revenue Code.

Purpose of Form

2

Use Form 8936 to figure your credit for qualified plug-in
electric drive motor vehicles you placed in service during
your tax year. The credit attributable to depreciable
property (vehicles used for business or investment
purposes) is treated as a general business credit. Any
credit not attributable to depreciable property is treated
as a personal credit.
Taxpayers that are not partnerships or S corporations,
and whose only source of this credit is from those
pass-through entities, are not required to complete or
file this form. Instead, they can report this credit directly
on line 1y of Form 3800.
SEE INSERT A

Qualified Plug-in Electric Drive Motor
Vehicle

A qualified plug-in electric drive motor vehicle is a new
vehicle:
● The original use of which commences with the
taxpayer;
● Which is acquired for use or lease by the taxpayer
and not for resale;
● Which is made by a manufacturer;
● Which is treated as a motor vehicle for purposes of
title II of the Clean Air Act;
● Which has a gross vehicle weight rating of less than
14,000 pounds; and
● Which is propelled to a significant extent by an
electric motor which draws electricity from a battery
which (1) has a capacity of not less than 4 kilowatt
hours, and (2) is capable of being recharged from an
external source of electricity.
Motor Vehicle. Motor vehicle means any vehicle which
is manufactured primarily for use on public streets,
roads, and highways (not including a vehicle operated
exclusively on a rail or rails) and which has at least 4
wheels.
Manufacturer. Manufacturer has the same meaning
given the term in regulations prescribed by the
Administrator of the Envvironmental Protection Agency
for purposes of the administration of title II of the Clean
Air Act (42 U.S.C. 7521 et seq.).
Battery capacity. Battery capacity means the quantity
of electricity which the battery is capable of storing,
expressed in kilowatt hours, as meansured from a 100
percent state of charge to a 9 percent state of charge.
Generally, for a qualified plug-in electric drive motor
vehicle, you can rely on the manufacturer’s (or, in the
case of a foreign manufacturer, its domestic
distributor’s) certification that a specific make, model,
and model year vehicle qualifies for the credit and the
maximum amount of the credit for which it qualifies.

Certification and other requirements.

Credit Phaseout delete text
The credit for vehicles is subject to a phaseout
(reduction) once the vehicle manufacturer (or, for a
foreign manufacturer, its U.S. distributor) sells 200,000
of these vehicles to a retailer for use in the United
States after 2009. The phaseout begins in the second
calendar quarter after the quarter in which the
200,000th vehicle was sold. Then the phaseout allows
50% of the full credit for 2 quarters, 25% of the full
credit for 2 additional quarters, and no credit
thereafter.

Basis Reduction
Unless you elect not to claim the credit, you may have to
reduce the basis of each vehicle by the sum of the
amounts entered on lines 5c and 9c for that vehicle.

Recapture of Credit

SEE INSERT B

If the vehicle no longer qualifies for the credit, you may
have to recapture part or all of the credit. For details, see
section 30D(f)(5).

More information. For details, see section 30D and
Notice 2009-54. You can find Notice 2009-54 on page
1124 of Internal Revenue Bulletin (IRB) 2009-26 at
www.irs.gov/pub/irs-irbs/irb09-26.pdf.

INSERT A
For vehicles acquired before 2010, this is a new vehicle that:
● Draws propulsion using a traction battery with at least 4 kilowatts of capacity,
and
● Uses an offboard source of energy to recharge the battery.
For vehicles acquired after 2009, this is a new vehicle that:
● Has a gross vehicle weight of less than 14,000 pounds, and
● Is propelled to a significant extent by an electric motor that draws electricity
from a battery that has a capacity of not less than 4 kilowatt hours and is capable
of being recharged from an external source of electricity.
INSERT B
Coordination With Other Credits
If a vehicle qualifies for the qualified plug-in electric drive motor vehicle credit:
● The vehicle does not qualify for the alternative motor vehicle credit on Form
8910,
● For vehicles acquired before 2010, the vehicle does not qualify for the plug-in
electric vehicle credit on Form 8834, and
● For vehicles acquired after 2009, the qualified plug-in electric drive motor
vehicle credit must be reduced by any plug-in electric vehicle credit allowed on
lines 10 or 17 of Form 8834 for the vehicle.

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8936, PAGE 3 of 4 (PAGE 4 IS BLANK)
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
1
FLAT SIZE: 216 mm (8 ⁄ 2 ") x 279 mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8936 (2009)

Specific Instructions
Line 3

Page

Line 7

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Enter the credit allowable (before reduction under the
phaseout rules) for the year, make, and model of vehicle
you entered on line 1. You can generally rely on the
manufacturer’s (or domestic distributor’s) certification of
the maximum credit allowable as explained above.

This list contains information from IRS news
releases available at the time this form went
to print. To check for information on model
Line
4 year 2009 vehicles or for later IRS news
CAUTION
releases that may update this list, visit www.irs.gov and
search for “hybrid.”

Line 4

3

Enter the percentage of business/investment use.
Enter 100% if the vehicle is used solely for business
purposes or you are claiming the credit as the seller of
the vehicle.
If the vehicle is used for both business purposes and
personal purposes, determine the percentage of
business use by dividing the number of miles the vehicle
is driven during the year for business purposes or for the
production of income (not to include any commuting
mileage) by the total number of miles the vehicle is
driven for all purposes. Treat vehicles used by your
employees as being used 100% for business/investment
purposes if the value of personal use is included in the
employees’ gross income, or the employees reimburse
you for the personal use. If you report the amount of
personal use of the vehicle in your employee’s gross
income and withhold the appropriate taxes, enter
100% for the percentage of business/investment use.
If during the tax year you convert property used solely
for personal purposes to business/investment use (or
vice versa), figure the percentage of business/
investment use only for the number of months you use
the property in your business or for the production of
income. Multiply that percentage by the number of
months you use the property in your business or for the
production of income and divide the result by 12. For
example, if you converted a vehicle to 50% business
use for the last 6 months of the year, you would enter
25% on line 6 (50% multiplied by 6 divided by 12).
For more information, see Pub. 463, Travel,
Entertainment, Gift, and Car Expenses.

Enter total qualified plug-in electric drive motor vehicle
credits from:
● Schedule K-1 (Form 1065), box 15 (code P) , and
● Schedule K-1 (Form 1120S), box 13 (code P) .

Line 14

If you cannot use part of the personal portion of the
credit because of the tax liability limit, the unused
credit is lost. The unused personal portion of the 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.
X hr., X min.
Recordkeeping
Learning about the law
or the form
X min.
Preparing and sending
the form to the IRS
X 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.

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