Form 8936 (2023): Clean Vehicle Credits
Form 8936, also known as the Clean Vehicle Credits form, helps taxpayers claim tax credits for purchasing new or previously owned electric vehicles (EVs) and fuel cell vehicles (FCVs) in tax year 2023.
What you can claim:
A. New Clean Vehicle Credit: This credit applies to new EVs and FCVs placed in service after December 31, 2022. The credit amount depends on the vehicle's battery capacity, starting at $3,751.
B. Previously Owned Clean Vehicle Credit: This credit applies to used EVs and FCVs acquired and placed in service after December 31, 2022. The credit is capped at the lesser of $4,000 or 30% of the vehicle's sales price.
Who is eligible?
Individuals with a Modified Adjusted Gross Income (MAGI) below certain thresholds:
- Single filers and Married Filing Separately: $150,000
- Married Filing Jointly and Qualifying Widows/Widowers: $300,000
- Head of Household: $225,000Tax-exempt and government entities under specific circumstances.
Key Points to Remember About Form 8836:
A. Transferable Credit: Starting in 2024, you might be able to transfer the new clean vehicle credit to the dealer for an immediate financial benefit instead of claiming it on your tax return.
B. Separate Schedules: Complete a separate Schedule A (Form 8936) for each clean vehicle you're claiming a credit for.
C. Supporting Documentation: Keep documents like the vehicle's Vehicle Identification Number (VIN) and sales receipt for verification.