IRS Form 8936 Clean Vehicle Tax Credit with Credit Transfer Election

Form 8936 is used to claim the Clean Vehicle Tax Credit for a qualified electric vehicle. Starting in 2024, buyers could transfer the credit amount to the dealership at the time of purchase. This resulted in the buyer being able to apply the credit directly to the purchase price of the vehicle rather than wait to tax time to file their Form 1040 and claim the clean vehicle credit.

In this example, we have a taxpayer that transferred the tax credit to the dealership because she believed her income would fall below the relevant income threshold. After completing her tax return, however, she discovered her income is too high, and she must repay the tax credit to the IRS.

0:00 Background and Fact Pattern
5:34 Form 8936 with Schedule A
15:16 Fueleconomy Website
16:31 IRS FAQs on Clean Vehicle Credits

IRS Resources:
FAQ: https://www.irs.gov/newsroom/topic-h-...
Clean Vehicle Credit: https://www.irs.gov/clean-vehicle-tax...
Fueleconomy: https://www.fueleconomy.gov/feg/tax20...

For more videos on energy tax credits:
   • Energy Efficient Credits and Incentiv...  

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