Form 8936-A Instructions for Form 8936-A

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2022

Instructions for Form 8936-A

Department of the Treasury
Internal Revenue Service

Qualified Commercial Clean Vehicle Credit (Including Instructions for Schedule 1
(Form 8936-A), Qualified Commercial Clean Vehicle Credit Amount)

DRAFT AS OF
December 22, 2022
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments

For the latest information about developments related to
Form 8936-A and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form8936A.

General Instructions
Purpose of Form

Use Form 8936-A to claim the credit for qualified
commercial clean vehicles you acquired after 2022. The
credit is equal to the sum of the credit amounts figured for
each qualified vehicle you placed in service during your
tax year.
Use Schedule 1 (Form 8936-A) to figure the qualified
commercial clean vehicle credit amount for each qualified
vehicle you acquired after 2022 and placed in service
during your tax year.
Partnerships and S corporations must file this form to
claim the credit. All other taxpayers are not required to
complete or file this form if their only source for this credit
is a partnership or S corporation. Instead, they can report
this credit directly on line 1zz in Part III of Form 3800,
General Business Credit.

Credit Amount

Generally, the credit amount for each qualified
commercial clean vehicle is equal to the lesser of:
• 15% of the basis of the vehicle (30% for a vehicle not
powered by a gasoline or diesel internal combustion
engine), or
• The incremental cost of the vehicle.
Incremental cost. The incremental cost of any qualified
commercial clean vehicle is an amount equal to the
excess of the purchase price for the vehicle over the price
of a comparable vehicle. A comparable vehicle is a
vehicle powered solely by a gasoline or diesel internal
combustion engine and which is comparable in size and
use to such vehicle.
Maximum per vehicle credit amount. The credit
amount is limited to $7,500 ($40,000 for a vehicle with a
gross vehicle weight rating of 14,000 pounds or more).

Qualified Commercial Clean Vehicle

This is a new vehicle with at least four wheels 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
Dec 21, 2022

vehicle with a gross vehicle weight rating 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 for vehicles placed in service by
certain tax-exempt entities); and
• Meets certain additional requirements discussed under
Certification and Other Requirements, later.
Certain new qualified fuel cell motor vehicles
(discussed next) may also be treated as qualified
commercial clean vehicles.

New Qualified Fuel Cell Motor Vehicle
This is a new vehicle with at least four wheels acquired
and placed in service after 2022 that:
• Is propelled by power derived from one or more cells
that convert chemical energy directly into electricity by
combining oxygen with hydrogen fuel;
• 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 for vehicles placed in service by
certain tax-exempt entities); and
• Meets certain additional requirements discussed under
Certification and Other Requirements, next.

Certification and Other Requirements

Generally, for qualified commercial clean vehicles, the
vehicle must have been manufacture by a qualified
manufacturer. A qualified manufacturer is a manufacturer
who has entered into a written agreement with the IRS
under which the manufacturer agrees to make periodic
written reports to the IRS providing vehicle identification
numbers (VINs) and other information about their qualified
commercial clean vehicles. Information and certifications
contained in these reports will help identify which vehicles
qualify for the qualified commercial clean vehicle credit.
The following additional 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.
• You acquired the vehicle for use or to lease to others,
and not for resale.

Cat. No. 93502V

• You use the vehicle primarily in the United States.

Line 4c

More information For details, see the following.
• IRC 45W.
• Rev. Proc. 2022-42.

See the exception discussed under Tax-Exempt Entities,
earlier.

Line 4d

Tax-Exempt Entities

See section 168(g)(4) for a list of exceptions that may
apply.

Vehicles placed in service by tax-exempt entities that are
not subject to a lease are not required to be subject to an
allowance for depreciation. This applies to a tax-exempt
entity described in clause (i), (ii), or (iv) of section 168(h)
(2)(A).

DRAFT AS OF
December 22, 2022
Line 5

For a discussion of cost or other basis, see Publication
551, Basis of Assets.

Basis Reduction

Line 6

Unless you elect not to claim the credit, you may have to
reduce the basis of each qualified vehicle by the amount
entered on line 12 of Schedule 1 (Form 8936-A) for that
vehicle.

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

Line 9

Coordination With Other Credits

See Incremental cost, earlier.

A vehicle that qualifies for the new clean vehicle credit on
Form 8936 cannot be used to claim the qualified
commercial clean vehicle credit.

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.

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
sections 45W(d)(1) and 30D(f)(5).

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.

Specific Instructions for Form 8936-A
Line 2

Enter the total qualified commercial clean vehicle credits
from:
• Schedule K-1 (Form 1065), Partner's Share of Income,
Deductions, Credits, etc., box 15 (code P); and
• Schedule K-1 (Form 1120-S), Shareholder's Share of
Income, Deductions, Credits, etc., box 13 (code P).
Partnerships and S corporations report the above
credits on line 2. All other filers reporting a separate credit
on line 1 also report the above credits on line 2. All others
not using line 1 to report a separate credit can report the
above credits directly on Form 3800, Part III, line 1zz.

The time needed to complete and file this form will vary
depending on individual circumstances. The estimated
burden for individual and business taxpayers filing this
form is approved under OMB control number 1545-0074
and 1545-0123 and is included in the estimates shown in
the instructions for their individual and business income
tax return. The estimated burden for all other taxpayers
who file this form is shown below.

Specific Instructions for Schedule 1
(Form 8936-A)

Recordkeeping . . . . . . . . . . . . . . . . . . .
Learning about the law or the form . . . . .
Preparing and sending the form to the
IRS . . . . . . . . . . . . . . . . . . . . . . . . . . .

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.

57 min.
22 min.
1 hr., 35 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.

Line 4a

See the definitions under General Instructions, earlier.

-2-

Instructions for Form 8936-A (2022)