Form 8936-A Instructions for Form 8936-A

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)

Future Developments

PHEVs and certain vehicles with a GVWR of 14,000
pounds or more, the IRS will accept the incremental cost
for the appropriate vehicle class determined by the
Department of the Energy (DOE) 2022 Incremental
Purchase Cost Methodology and Results for Clean
Vehicles. For details, see Notice 2023-9, available at
IRS.gov/irb/2023-03_IRB#NOT-2023-9.

General Instructions

Maximum per vehicle credit amount. The credit
amount is limited to $7,500 ($40,000 for a vehicle with a
gross vehicle weight rating (GVWR) of 14,000 pounds or
more).

Section references are to the Internal Revenue Code
unless otherwise noted.
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.

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.
Safe harbor. Notice 2023-9 provides a safe harbor
regarding the incremental cost of certain qualified
commercial clean vehicles (including new qualified fuel
cell motor vehicles) placed in service in calendar year
2023. The IRS will accept the use of $7,500 as the
incremental cost for all street vehicles (other than
compact car plug-in hybrid electric vehicles (PHEVs)) with
a gross vehicle weight rating (GVWR) of less than 14,000
pounds to figure the credit amount for vehicles placed in
service during calendar year 2023. For compact car
Mar 15, 2023

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
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.

Cat. No. 93502V

Certification and Other Requirements

Specific Instructions for Form 8936-A

Generally, for qualified commercial clean vehicles, the
vehicle must have been manufactured 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 the tax year.
• You acquired the vehicle for use or to lease to others,
and not for resale.
• You use the vehicle primarily in the United States.

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.

Specific Instructions for Schedule 1
(Form 8936-A)
Line 2

More information. For details, see the following.
• Section 45W.
• Rev. Proc. 2022-42, 2022-52 I.R.B. 565, available at
IRS.gov/irb/2022-52_IRB#REV-PROC-2022-42.
• IRS.gov/credits-deductions/commercial-clean-vehiclecredit.

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 4a

Tax-Exempt Entities

See the definitions under General Instructions, earlier.

Vehicles placed in service by a tax-exempt entity that are
not subject to a lease are not required to be subject to an
allowance for depreciation. For this purpose, tax-exempt
entity means:
• The United States, any state or political subdivision
thereof, any possession of the United States, or any
agency or instrumentality of any of the foregoing;
• An organization (other than a cooperative described in
section 521) that is exempt from tax imposed by chapter 1
of the Internal Revenue Code; or
• Any Indian tribal government described in section
7701(a)(40).
For this purpose, an Indian tribal government referred
to in the last bullet shall be treated in the same manner as
a state.

Line 4c

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

Line 4d

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

Line 4e

A qualified commercial clean vehicle (including a new
qualified fuel cell motor vehicle) is not required to be
powered solely by an electric motor to qualify for the
credit. The vehicle may also be powered by a gasoline or
diesel internal combustion engine. However, if it is also
powered by a gas or diesel engine, the credit rate is
reduced from 30% to 15%. For more information, see the
vehicle definitions earlier.

Basis Reduction

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.

Line 5

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

Coordination With Other Credits

Line 6

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

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

Recapture of Credit

Line 9

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).

See Incremental cost, earlier.

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Instructions for Form 8936-A (2022)

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

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.

Instructions for Form 8936-A (2022)

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