Form 8936 Qualified Plug-In Electric Drive Motor Vehicle Credit

Form

8936

Department of the Treasury
Internal Revenue Service

Qualified Plug-in Electric Drive Motor Vehicle Credit
(Including Qualified Two- or Three-Wheeled Plug-in Electric Vehicles)
▶ Attach to your tax return.
▶ Information about Form 8936 and its instructions is at www.irs.gov/form8936.

OMB No. 1545-2137

2012

Attachment
Sequence No. 125

Identifying number

Name(s) shown on return

Note.
• Use this form to claim the credit for certain plug-in electric vehicles (other than certain two- or three-wheeled or low-speed fourwheeled vehicles acquired before 2012).
• Claim the credit for certain two- or three-wheeled or low-speed four-wheeled plug-in electric vehicles acquired before 2012 on
Form 8834.
• Claim the credit for certain alternative motor vehicles on Form 8910.

Part I

Tentative Credit

Use a separate column for each vehicle. If you need more columns,
use additional Forms 8936 and include the totals on lines 12 and 19.

1

Year, make, and model of vehicle .

2

Vehicle identification number (see instructions)

3
4

Enter date vehicle was placed in service (MM/DD/YYYY)
If the vehicle is a two- or three-wheeled vehicle, enter
the cost of the vehicle. If the vehicle has at least four
wheels, enter the tentative credit (see instructions) .

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1

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2

(a) Vehicle 1

(b) Vehicle 2

3

4

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

Credit for Business/Investment Use Part of Vehicle

Business/investment use percentage (see instructions)
Multiply line 4 by line 5. If the vehicle has at least four
wheels, leave lines 7 through 10 blank and enter this
amount on line 11 . . . . . . . . . . . .

5

7

Section 179 expense deduction (see instructions)

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7

8

Subtract line 7 from line 6.

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8

9

Multiply line 8 by 10% (.10) .

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9

5
6

10
11
12
13
14

16
17

%

6

Maximum credit per vehicle
10
2,500 00
If the vehicle is a two- or three-wheeled vehicle, enter
the smaller of line 9 or line 10 . . . . . . . .
11
Add columns (a) and (b) on line 11
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12
Qualified plug-in electric drive motor vehicle credit from partnerships and S
corporations . . . . . . . . . . . . . . . . . . . . . . . . .
13
Business/investment use part of credit. Add lines 12 and 13. Partnerships and S
corporations, report this amount on Schedule K. All others, report this amount on Form
3800, line 1y . . . . . . . . . . . . . . . . . . . . . . . . .
14

Part III
15

%

2,500 00

Credit for Personal Use Part of Vehicle

If you skipped Part II, enter the amount from line 4. If
you completed Part II, subtract line 6 from line 4. If the
vehicle has at least four wheels, leave lines 16 and 17
blank and enter this amount on line 18 . . . . .

15
Multiply line 15 by 10% (.10) . . . . . . . . .
16
Maximum credit per vehicle. If you skipped Part II, enter
$2,500. If you completed Part II, subtract line 11 from
line 10 . . . . . . . . . . . . . . . .
17

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 37751E

Form

8936 (2012)

Form 8936 (2012)

Part III

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Credit for Personal Use Part of Vehicle (continued)
(a) Vehicle 1

18

If the vehicle is a two- or three-wheeled vehicle, enter the
smaller of line 16 or line 17 . . . . . . . . .
18

19

Add columns (a) and (b) on line 18 .

20

Enter the amount from Form 1040, line 46, or Form 1040NR, line 44

21

Personal credits from Form 1040 or 1040NR (see instructions)

22
23

Subtract line 21 from line 20
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Personal use part of credit. Enter the smaller of line 19 or line 22 here and on Form
1040, line 53, or Form 1040NR, line 50. Check box c on that line and enter “8936” in
the space next to that box. If line 22 is smaller than line 19, see instructions . . . .

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(b) Vehicle 2

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19

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Form

8936 (2012)

Form 8936 (2012)

General Instructions
Section references are to the Internal Revenue Code.

Future Developments
For the latest information about developments related to
Form 8936 and its instructions, such as legislation
enacted after they were published, go to
www.irs.gov/form8936.

What's New
The credit is now available for certain two- or
three-wheeled vehicles acquired after 2011 and before
2014.

Purpose of Form
For tax years beginning after 2008, use Form 8936 to
figure your credit for qualified plug-in electric drive motor
vehicles you placed in service during your tax year. Also
use Form 8936 to figure your credit for certain qualified
two- or three-wheeled plug-in electric vehicles acquired
after 2011 and before 2014. 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 passthrough entities, are not required to complete or file this
form. Instead, they can report this credit directly on Form
3800.

Qualified Plug-in Electric Drive Motor Vehicle
This is a new vehicle with at least four wheels 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 4 kilowatt hours and is capable of being
recharged from an external source of electricity, and
• Has a gross vehicle weight of less than 14,000 pounds.

Qualified Two- or Three-Wheeled Plug-in
Electric Vehicle
This is a new vehicle with two or three wheels that:
• Is capable of achieving a speed of 45 miles per hour or
greater,
• Is propelled to a significant extent by an electric motor
that draws electricity from a battery that has a capacity of
not less than 2.5 kilowatt hours and is capable of being
recharged from an external source of electricity, and
• Has a gross vehicle weight of less than 14,000 pounds.

Certification and Other Requirements
Generally, 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, if applicable, the
amount of the credit for which it qualifies.
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.

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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.
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 vehicle is manufactured primarily for use on public
streets, roads, and highways;
• 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 qualified plug-in
electric drive motor vehicle or qualified two- or threewheeled plug-in electric 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 11
of Form 8936).
More information. For details, see the following.
• Section 30D.
• Notice 2009-54, 2009-26 I.R.B. 1124, available at
www.irs.gov/irb/2009-26_IRB/ar07.html.
• Notice 2009-89, 2009-48 I.R.B. 714, available at
www.irs.gov/irb/2009-48_IRB/ar09.html.
• Notice 2012-54, 2012-52 I.R.B. 773, available at
www.irs.gov/irb/2012-52_IRB/ar13.html.

Credit Phaseout
The credit for vehicles with at least four wheels 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 11 and 18 for that vehicle.

Form 8936 (2012)

Coordination With Other Credits
A vehicle that qualifies for the qualified plug-in electric
drive motor vehicle credit on this form cannot be used to
claim the alternative motor vehicle credit on Form 8910.
Also, the vehicle will not qualify for the qualified plug-in
electric motor vehicle credit on Form 8834.

Recapture of Credit
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).

Specific Instructions
Line 2
Enter the vehicle's vehicle identification number (VIN) on
line 2. The VIN of a vehicle can be obtained from the
registration, title, proof of insurance, or actual vehicle.
Generally, the VIN is 17 characters made up of numbers
and letters.

Line 4
Cost or Tentative Credit
For two- or three-wheeled vehicles, enter the cost of the
vehicle you entered on line 1. For vehicles with at least
four wheels, enter the credit allowable 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 credit allowable as
explained above.
Tentative credit amounts acknowledged by the IRS are
available at
www.irs.gov/Businesses/Qualified-Vehicles-Acquiredafter-12-31-2009. Or you can visit IRS.gov and search for
“Plug-in Electric Vehicle Credit (IRC 30 and 30D).”

Line 5
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

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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 5 (50% multiplied by 6
divided by 12).
For more information, see Pub. 463, Travel,
Entertainment, Gift, and Car Expenses.

Line 7
Enter any section 179 expense deduction you claimed for
the vehicle from Part I of Form 4562, Depreciation and
Amortization.

Line 13
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 21
Enter the total, if any, credits from Form 1040, lines 47
through 50 (or Form 1040NR, lines 45 through 47);
Form 5695, line 32; Form 8834, line 23; Form 8910, line
22; and Schedule R, line 22.

Line 23
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.
Recordkeeping . . . . . . . . . .
4 hr., 4 min.
Learning about the law or the form . . . . 35 min.
Preparing and sending the form to the IRS . 41 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.