Form 8936

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Form 8936 is now the Clean Vehicle Credit for vehicles purchased after 2022. It is available.  there are limitations on whom can claim though.

Further, certain final assembly requirements were added for vehicles purchased after August 16, 2022. That means if you bought and took delivery of a qualified electric vehicle beginning August 17, 2022 through December 31, 2022, the same rules applied but the vehicle needed to undergo final assembly in North America. The Department of Energy maintains a database for you to assess whether your model meets these assembly requirements.

You can confirm the assembly location for your specific vehicle using the VIN Decoder tool and check a list of qualifying Model Year 2022 and early Model Year 2023 EVs.

This page covers rules before and after changes under the Inflation Reduction Act of 2022.

At the time of sale, a seller must give you information about your vehicle's qualifications. Sellers must also register online and report the same information to the IRS. If they don't, your vehicle won't be eligible for the credit.

The Clean Vehicle Credit comes with income limitations for who can claim it. Eligibility is based on the lesser of your modified adjusted gross income (MAGI) for the year that the new clean vehicle was placed in service or for the preceding year. The limits are:

• if your filing status is Married Filing Jointly: Your MAGI can’t exceed $300,000
• if your filing status is Head of Household: Your MAGI can’t exceed $225,000
• if your filing status is Single or Married Filing Separately: Your MAGI can’t exceed $150,000

Clean Vehicle Credit price caps

The Clean Vehicle Credit also has price limitations on the vehicle you purchase based on the Manufacturer’s Suggested Retail Price (MSRP) on new EVs as follows: vans, SUVs, and pickup trucks can’t exceed $80,000, while sedans and other vehicle types can’t exceed $55,000.

Requirements for clean vehicles placed in service January 1 to April 17, 2023

For the first part of 2023, the Clean Vehicle Credit has a base amount for qualifying EVs and Fuel Cell Vehicles (FCVs), and an additional amount based on the vehicle's battery capacity. Specifically:

• $2,500 base amount
• plus $417 for a vehicle with at least 7 kilowatt hours of battery capacity
• plus $417 for each kilowatt hour of battery capacity beyond 5 kilowatt hours
• up to $7,500 total

In general, the minimum credit will be $3,751 ($2,500 + 3 times $417), the credit amount for a vehicle with the minimum 7 kilowatt hours of battery capacity.

Requirements for clean vehicles placed in service after April 17, 2023

For clean vehicles placed in service beginning April 18, 2023, the new Clean Vehicle Credit is made up of two requirements that total to $7,500 ($3,750 each) - battery components and critical minerals. You’ll need to meet each requirement to claim each portion of the Clean Vehicle Credit on Form 8936.