IRS Form 8834 Instructions for EV & Fuel Credits

Taxpayers use specific IRS forms to claim tax benefits for clean energy transportation. The Clean Vehicle Credit is claimed using Form 8936, while the Alternative Fuel Vehicle Refueling Property Credit is claimed using Form 8911. These forms are the primary documents for calculating the allowed credit amounts before the final figures are transferred to your main tax return.

Determining Eligibility for the Credits

To claim the Clean Vehicle Credit, the vehicle must meet several requirements. The rules apply to new and used clean vehicles, including cars and trucks. Key qualifications are tied to the manufacturer’s suggested retail price (MSRP), the buyer’s modified adjusted gross income, and sourcing requirements for the vehicle’s battery components and critical minerals.

The Alternative Fuel Vehicle Refueling Property Credit applies to the equipment used to power these vehicles. This credit is available for property placed in service that dispenses alternative fuels like electricity, ethanol, natural gas, or hydrogen. For personal use, the refueling property must be located at your main home. To qualify for the full 30% credit, the property must be located in a low-income community or a non-urban area.

How to Claim the Credits

Before you can complete the necessary forms, you must gather specific documents and information. For the Clean Vehicle Credit, you will need the vehicle identification number (VIN), the date you placed the vehicle in service, its cost, and information from the seller. For the refueling property, you will need the property’s address, the date it was placed in service, and its total cost.

The form for the clean vehicle credit guides you through the calculations based on the vehicle’s specifics and applies limitations based on your tax liability.

The calculation for the refueling property credit differs based on whether the property is for personal or business use. For business-use property, the credit is part of the general business credit. For personal-use property, it is a non-refundable personal credit.

Filing the Forms with Your Tax Return

For individuals, the personal portion of the credits from Form 8936 and Form 8911 is carried to Schedule 3 (Form 1040), Additional Credits and Payments. For businesses, the credit is generally reported on Form 3800, General Business Credit.

After transferring the credit amount, you must attach the completed forms to your income tax return. Whether you are filing a Form 1040 for personal income tax or a business tax return, the forms become part of the total package submitted to the IRS. This applies to both electronic and paper filings. Ensuring the forms are properly attached is necessary for the IRS to process the credit claim correctly.