Form 8936 (2025): 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 2025.
What You Can Claim:
A. New Clean Vehicle Credit: This credit applies to new EVs and FCVs placed in service after December 31, 2023. The credit is worth up to $7,500, depending on the vehicle's battery components and critical minerals requirements.
B. Previously Owned Clean Vehicle Credit: This credit applies to qualifying used EVs and FCVs purchased from a licensed dealer for $25,000 or less. The credit equals 30% of the sale price, up to a maximum of $4,000.
Who Is Eligible?
Individuals with a Modified Adjusted Gross Income (MAGI) below the following thresholds may qualify:
- Single or Married Filing Separately: $150,000
- Head of Household: $225,000
- Married Filing Jointly or Qualifying Widow(er): $300,000
Key Points to Remember About Form 8936:
A. Transferable Credit: Starting in 2024 (and continuing in 2025), you can transfer your new or used clean vehicle credit to the dealer for an immediate discount at the time of purchase.
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 such as the vehicle's Vehicle Identification Number (VIN) and the sales receipt for verification.