Instructions for Form 8936 - Clean Vehicle Credits (and Schedule A (Form 8936), Clean Vehicle Credit Amount)

Sep 19, 2026

Instructions for Form 8936 and Schedule A (Form 8936) explain how to calculate Clean Vehicle Credits for clean vehicles placed in service during the tax year. The guidance covers clean vehicle credit categories, requirements for new clean vehicles, business versus personal credit treatment, partnership and S corporation filing rules, and cautions on eligibility after September 30, 2025. It also describes vehicle “acquisition” timing, seller reporting through the IRS ECO portal, and the credit transfer process to dealers for both new and previously owned clean vehicles.

LanguageEnglish

CategoryForms

FormatPDF

Pages8

Reading Time3 min

AccessFree to download

Future Developments

What’s New

Reminders

Transfer of new clean vehicle credit

Transfer of previously owned clean vehicle credit

General Instructions Purpose of Form

New Clean Vehicle Credit

New clean vehicle defined

New qualified fuel cell motor vehicle

2025 Instructions for Form 8936 Clean Vehicle Credits (and Schedule A (Form 8936), Clean Vehicle Credit Amount) Section references are to the Internal Revenue Code unless otherwise noted. Future Developments For the latest information about developments related to Form 8936 and its instructions, such as legislation enacted after they were published, [go to](go to IRS.gov/)[ ](go to IRS.gov/)[IRS.gov/](go to IRS.gov/)[ ](go to IRS.gov/)[Form8936](Form8936.)[.](Form8936.) What’s New Clean vehicles acquired after September 30, 2025. Taxpayers cannot claim clean vehicle credits for new, previously owned, or commercial clean vehicles that they acquired after September 30, 2025. See New Clean Vehicle Credit, Previously Owned Clean Vehicle Credit, and Qualified Commercial Clean Vehicle Credit, later. For purposes of sections 25E, 30D, and 45W, a vehicle is “acquired” as of the date a written binding contract is entered into and a payment has been made. A payment includes a nominal down payment or a vehicle trade-in. For general information on modifications to sections 25E, 30D, and 45W under P.L. 119-21, [see](see IRS.gov/)[ ](see IRS.gov/)[IRS.gov/](see IRS.gov/)[ ](see IRS.gov/)[EnergyCreditFAQs](EnergyCreditFAQs.)[.](EnergyCreditFAQs.) Reminders Vehicles placed in service beginning January 1, 2024. For vehicles placed in service after December 31, 2023, the seller must file the seller report through the IRS Energy Credits Online (ECO) portal available at [IRS.gov/](IRS.gov/)[ ](IRS.gov/)[credits-deductions/energy-credits-online](credits-deductions/energy-credits-online.)[.](credits-deductions/energy-credits-online.) Transfer of new clean vehicle credit. For vehicles placed in service after 2023, you may be able to transfer the credit amount to the dealer at the time of sale and receive an immediate financial benefit in place of a tax credit claimed on your tax return. If you elect to transfer the credit, you must file Form 8936 and Schedule A (Form 8936) with your return for the tax year in which the vehicle was placed in service. For details, [go to](go to IRS.gov/)[ ](go to IRS.gov/)[IRS.gov/](go to IRS.gov/)[ ](go to IRS.gov/)[CleanVehicles](CleanVehicles.)[.](CleanVehicles.) Transfer of previously owned clean vehicle credit. For vehicles placed in service after 2023, you may be able to transfer the credit amount to the dealer at the time of sale and receive an immediate financial benefit in place of a tax credit claimed on your tax return. If you elect to transfer the credit, you must file Form 8936 and Schedule A (Form 8936) with your return for the tax year in which the vehicle was placed in service. For details, go to [IRS.gov/CleanVehicles](IRS.gov/CleanVehicles). General Instructions Purpose of Form Use Form 8936 and Schedule A (Form 8936) to figure the following credits for clean vehicles you placed in service during your tax year. • New clean vehicle credit. • Previously owned clean vehicle credit. • Qualified commercial clean vehicle credit. Caution: You must file Form 8936 and Schedule A (Form 8936) if you purchased a new or used clean vehicle from a registered dealer and reduced the amount you paid at the time of sale by transferring the credit to the dealer. New Clean Vehicle Credit Use Parts I, II, and III of Form 8936 to claim the credit for new clean vehicles. The credit is equal to the sum of the credit amounts figured for each new clean vehicle you placed in service during your tax year. Use Parts I, II, and III of Schedule A (Form 8936) to figure the clean vehicle credit amount for each new clean vehicle you placed in service during your tax year. The part of the credit attributable to business/ investment use of a new clean vehicle is treated as a general business credit. Any part of the credit not attributable to business/investment use is treated as a personal credit. Partnerships and S corporations must file this form to claim the credit. All other taxpa

FAQs

What is Form 8936 used for?

Form 8936 and Schedule A (Form 8936) are used to figure clean vehicle credits for clean vehicles placed in service during the taxpayer’s tax year, including new clean vehicle, previously owned clean vehicle, and qualified commercial clean vehicle credits.

When is a vehicle considered “acquired” for purposes of the instructions?

A vehicle is “acquired” when a written binding contract is entered into and a payment has been made. A payment can include a nominal down payment or a vehicle trade-in.

How does transferring the new clean vehicle credit work?

For vehicles placed in service after 2023, taxpayers may transfer the credit amount to the dealer at the time of sale to receive an immediate financial benefit instead of claiming it on the tax return. If the election is made, Form 8936 and Schedule A (Form 8936) must be filed with the return for the year the vehicle was placed in service.

Sep 19, 2026

Upload by Seraphina