Form 8910 Instructions: Alternative Motor Vehicle Credit

Form 8910, the Alternative Motor Vehicle Credit, is a tax form for claiming a credit for specific alternative motor vehicles placed in service. This credit was an incentive for adopting certain environmentally friendly vehicles. The Alternative Motor Vehicle Credit expired for vehicles purchased after 2021 and was replaced by the Clean Vehicle Credit. For vehicles purchased from 2022 onward, taxpayers should use Form 8936. Form 8910 may still be relevant for those who purchased a qualifying vehicle in 2021 but placed it in service in a later year.

Determining Eligibility for the Credit

To claim the Alternative Motor Vehicle Credit, the person claiming the credit must be the original owner of the vehicle. This means the original use of the vehicle begins with you, and you did not acquire it for the purpose of resale. If a vehicle is leased, only the lessor, not the person leasing the vehicle, is entitled to claim the credit. The vehicle must also be used primarily within the United States.

For recent tax years, the only vehicles that qualify are new qualified fuel cell vehicles. A fuel cell vehicle is propelled by power derived from one or more cells that convert chemical energy into electricity by combining oxygen with hydrogen. The vehicle must have at least four wheels.

You can rely on the vehicle manufacturer’s certification to the IRS that a specific make, model, and model year qualifies for the credit. Manufacturers or their domestic distributors should provide a copy of the IRS letter that acknowledges this certification. This certification will also state the tentative credit amount for that specific vehicle.

Information and Calculations for Form 8910

To complete Form 8910, you will need the following information:

• The vehicle’s year, make, model, and Vehicle Identification Number (VIN)
• The date you placed the vehicle in service, which is the date it was ready for its specific use
• The vehicle’s basis, which is its cost
• The manufacturer’s certification letter stating the tentative credit amount

Part I is used to calculate the tentative credit. You will enter the vehicle information and the tentative credit amount from the manufacturer’s certification. This initial amount is then subject to limitations based on how the vehicle was used.

Part II of the form deals with the portion of the credit attributable to personal use. You must determine the percentage of the vehicle’s total mileage that was for personal purposes during the year. This percentage is multiplied by the tentative credit amount to find the personal use portion. This amount is then subject to limitations based on your overall tax liability, as it is a nonrefundable credit.

Part III is for calculating the business or investment use portion of the credit. You will determine the percentage of the vehicle’s mileage used for business purposes and multiply it by the tentative credit. This business portion of the credit becomes part of the general business credit, which has its own set of rules and limitations. If the vehicle was used for both personal and business purposes, you will complete both Part II and Part III.

Filing Form 8910 with Your Tax Return

The final credit amounts calculated on the form are transferred to different parts of your main tax return depending on the vehicle’s use. The personal portion of the credit, calculated in Part II, is reported on Schedule 3 (Form 1040), Additional Credits and Payments.

The business and investment use portion of the credit from Part III is reported on Form 3800, General Business Credit. Form 3800 is used to claim various business credits and has its own instructions and limitations. The total from Form 3800 then flows to the appropriate line on your primary tax return.

Form 8910 must be attached to your return. If you are filing electronically through tax preparation software, the software will generate and attach the form automatically based on the information you provide. If filing a paper return, you must print the completed Form 8910 and physically attach it to your primary tax form.