This article explains how to claim the maximum credit amount for business/investment use of an electric vehicle on Form 8936.
- The maximum amount of the credit for business/investment use part of an electric vehicle is $2,500.
- Additional amounts can be added to the base amount if certain conditions are met.
- The additional credit is available for vehicles with at least four wheels and a capacity of more than 5 kilowatt hours.
- The credit maximum increases incrementally $417 per additional kilowatt-hour in excess of 5 hours, up to a maximum of $7,500.
How to claim the additional credit amount
- Go to Screen 34, General Business & Vehicle Credits.
- Scroll down to the section Vehicle Credits (8910, 8936).
- Under subsection Form 8936, enter the Kilowatt hour capacity (x.xxx) for the vehicle.
For more information
- See IRC Section 30D, Plug-In Electric Drive Vehicle Credit
- For information on inputs to generate Form 8936, see Entering a Vehicle Credit for Form 8936 for a Non Two or Three-Wheeled Vehicle
