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Generating Form 8936, Clean Vehicle Credit in ProConnect Tax

SOLVED•by Intuit•10•Updated 4 weeks ago

This article will help you generate Form 8936 in any tax module. If the information is for a passthrough or business activity, you need to indicate this in the program. See the additional set of instructions here.

Select your desired tax module to see steps:

IndividualPartnershipCorporateS-Corp

New for Form 8936 for tax year 2023:

  • A new clean vehicle credit for new electric vehicles meeting specific requirements
  • A credit for previously owned clean vehicles
  • A credit for qualified commercial clean vehicles

Tax-exempt and governmental entities may also elect to treat their credits as a payment of income tax. However, credit for plug-in electric-drive motor vehicles is no longer available for vehicles placed in service after 2022 and final assembly of the vehicle must occur within North America for vehicles purchased after August 16, 2022. See here for more details.

Individual

  1. Go to the Input Return tab for the appropriate client.
  2. From the table of contents, select Credits, then select General Business and Vehicle Cr.
  3. Select the Vehicle tab to get to the Clean Vehicle Credits (8936) section.
  4. Complete all fields in the Vehicle Details subsection
  5. Continue answering the questions presented in this section in the order indicated by your selections.
  6. Follow the directions on the input screen until you complete the input and generate the form, or until you see Stop here which indicates the vehicle doesn't qualify for a credit. 
    • If Part II is needed, an entry is required for tentative credit amount to generate the form.

Partnership

  1. Go to the Input Return tab for the appropriate client.
  2. From the table of contents, select Schedule K, then select Credits.
  3. From the Credits section, select Clean Vehicle Credits.
  4. Complete all fields in the Vehicle Details subsection.
  5. Continue answering the questions presented in this section in the order indicated by your selections.
  6. Follow the directions on the input screen until you complete the input and generate the form, or until you see Stop here which indicates the vehicle doesn't qualify for a credit. 
    • If Part II is needed, an entry is required for tentative credit amount to generate the form.

Corporate

  1. Go to the Input Return tab for the appropriate client.
  2. From the table of contents, select Credits, then General Business Credits (3800).
  3. From the General Business Credits (3800) section, select Clean Vehicle Credits.
  4. Complete all fields in the Vehicle Details subsection.
  5. Continue answering the questions presented in this section in the order indicated by your selections.
  6. Follow the directions on the input screen until you complete the input and generate the form, or until you see Stop here which indicates the vehicle doesn't qualify for a credit. 

S-Corp

  1. Go to the Input Return tab for the appropriate client.
  2. From the table of contents, select Schedule K, then select Credits.
  3. From the Credits section, select Clean Vehicle Credits.
  4. Complete all fields in the Vehicle Details subsection.
  5. Continue answering the questions presented in this section in the order indicated by your selections.
  6. Follow the directions on the input screen until you complete the input and generate the form, or until you see Stop here which indicates the vehicle doesn't qualify for a credit. 

For qualified four-wheeled plug-in electric vehicles, the manufacturer may have provided the tentative credit. If this is the case, you only need to enter the Tentative credit [Override] field and should leave the Kilowwatt hour capacity (x.xxx) field blank.

  1. Go to the Input Return tab.
  2. From the left of the screen, select Credits and choose General Business and Vehicle Cr.
  3. From the top of the screen, select Vehicle.
  4. Scroll down to the Clean Vehicle Credits (8936) section.
  5. Enter a 2 in 1=alternative motor vehicle (8910), 2=plug-in electric drive motor vehicle (8936) .
  6. Complete the following fields in the Vehicle Information subsection:
    • Date placed in service
    • Vehicle identification number (VIN)
    • Year (e.g. 2016)
    • Make
    • Model
  7. Under the Clean Vehicle Credits subsection, enter information in the applicable fields for your vehicle:
    • For the Two-Wheeled plug-in electric vehicle subsection, enter the Cost of two-wheeled vehicle.
    • For the At least Four-Wheeled plug-in electric vehicle subsection, enter the Kilowatt hour capacity (x.xxx) and Tentative credit [O].

Follow these steps to enter the information as a passthrough or business activity:

  1. From the left of the screen, select Credits and choose General Business and Vehicle Cr.
  2. Under the Credits section, select the type of Form (Click on arrow to select from list).
    • Schedule C
    • Schedule E (rental/royalty)
    • Schedule F/ Form 4835
    • Schedule E (partnership)
    • Schedule E (S corporation)
    • Schedule E (estate or trust)
  3. Select the specific Activity name or number (Click on arrow to select from list) for this credit.
    • Click the plus sign (+) at the top of the screen to add additional activities.
  4. From the top of the screen, select Vehicle.
  5. Scroll down to the Clean Vehicle Credit section.
  6. Under the Vehicle Information subsection, enter the Section 179 deduction, if applicable.
  7. Under the Business or Investment Use Percentage subsection, enter information in the applicable fields:
    • Total mileage
    • Business mileage
    • Number of months of business/investment use (if not 12)
    • Plug-in electric drive motor vehicle credit from passthroughs (8936) (code 240)
  8. Follow the above instructions for your vehicle.

 

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