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Basis Reduction

last 6 months of the year, you would enter 25% on line 5 (50%

multiplied by 6 divided by 12).

Unless you elect not to claim the credit, you may have to reduce

the basis of each vehicle by the sum of the amounts entered on

For more information, see Pub. 463, Travel, Entertainment,

lines 11 and 18 for that vehicle.

Gift, and Car Expenses.

Coordination With Other Credits

Line 7

A vehicle that qualifies for the qualified plug-in electric drive

Enter any section 179 expense deduction you claimed for the

motor vehicle credit on this form cannot be used to claim the

vehicle from Part I of Form 4562, Depreciation and Amortization.

alternative motor vehicle credit on Form 8910.

Line 13

Recapture of Credit

Enter total qualified plug-in electric drive motor vehicle credits

If the vehicle no longer qualifies for the credit, you may have to

from:

recapture part or all of the credit. For details, see section 30D(f)

(5).

Schedule K-1 (Form 1065), Partner's Share of Income,

Deductions, Credits, etc., box 15 (code P); and

Specific Instructions

Schedule K-1 (Form 1120S), Shareholder's Share of Income,

Deductions, Credits, etc., box 13 (code P).

Line 2

Partnerships and S corporations must always report the above

credits on line 13. All other filers figuring a separate credit on

Enter the vehicle's vehicle identification number (VIN) on line 2.

earlier lines must also report the above credits on line 13. All

The VIN of a vehicle can be obtained from the registration, title,

others not using earlier lines to figure a separate credit can

proof of insurance, or actual vehicle. Generally, the VIN is 17

report the above credits directly on Form 3800, Part III, line 1y.

characters made up of numbers and letters.

Line 21

Line 4

Enter the total, if any, credits from Form 1040, lines 48 through

Cost or Tentative Credit

51 (or Form 1040NR, lines 46 through 48); Form 5695, line 30;

Form 8910, line 15; and Schedule R, line 22.

For two-wheeled vehicles, enter the cost of the vehicle you

Line 23

entered on line 1. For vehicles with at least four wheels, enter

the credit allowable for the year, make, and model of vehicle you

If you cannot use part of the personal portion of the credit

entered on line 1. You can generally rely on the manufacturer’s

because of the tax liability limit, the unused credit is lost. The

(or domestic distributor’s) certification to the IRS of the credit

unused personal portion of the credit cannot be carried back or

allowable as explained above.

forward to other tax years.

Tentative credit amounts acknowledged by the IRS are

Paperwork Reduction Act Notice. We ask for the information

available at

on this form to carry out the Internal Revenue laws of the United

Acquired-after-12-31-2009. Or you can visit IRS.gov and search

States. You are required to give us the information. We need it to

for “Plug-In Electric Drive Vehicle Credit (IRC 30D).”

ensure that you are complying with these laws and to allow us to

Line 5

figure and collect the right amount of tax.

Enter the percentage of business/investment use.

You are not required to provide the information requested on

a form that is subject to the Paperwork Reduction Act unless the

Enter 100% if the vehicle is used solely for business

form displays a valid OMB control number. Books or records

purposes or you are claiming the credit as the seller of the

relating to a form or its instructions must be retained as long as

vehicle.

their contents may become material in the administration of any

Internal Revenue law. Generally, tax returns and return

If the vehicle is used for both business purposes and

information are confidential, as required by section 6103.

personal purposes, determine the percentage of business use

by dividing the number of miles the vehicle is driven during the

The time needed to complete and file this form will vary

year for business purposes or for the production of income (not

depending on individual circumstances. The estimated burden

to include any commuting mileage) by the total number of miles

for individual and business taxpayers filing this form is approved

the vehicle is driven for all purposes. Treat vehicles used by your

under OMB control number 1545-0074 and 1545-0123 and is

employees as being used 100% for business/investment

included in the estimates shown in the instructions for their

purposes if the value of personal use is included in the

individual and business income tax return. The estimated burden

employees’ gross income, or the employees reimburse you for

for all other taxpayers who file this form is shown below.

the personal use. If you report the amount of personal use of the

vehicle in your employee’s gross income and withhold the

appropriate taxes, enter “100%” for the percentage of business/

Recordkeeping

4 hr., 4 min.

. . . . . . . . . . . . . . . . . . . .

investment use.

Learning about the law or the form

35 min.

. . . . . . . .

Preparing and sending the form to the IRS

41 min.

. . .

If during the tax year you convert property used solely for

personal purposes to business/investment use (or vice versa),

figure the percentage of business/investment use only for the

If you have comments concerning the accuracy of these time

number of months you use the property in your business or for

estimates or suggestions for making this form simpler, we would

the production of income. Multiply that percentage by the

be happy to hear from you. See the instructions for the tax return

number of months you use the property in your business or for

with which this form is filed.

the production of income and divide the result by 12. For

example, if you converted a vehicle to 50% business use for the

-2-

Instructions for Form 8936 (2016)

Instructions For Form 8936 - Qualified Plug-In Electric Drive Motor Vehicle Credit - 2016 Page 2

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