Form 8936: Clean Vehicle Credits and the September 30, 2025 Cutoff
Published November 5, 2026
Form 8936 and Schedule A (Form 8936) figure the clean vehicle credits. There are three kinds: the new clean vehicle credit, the previously owned clean vehicle credit, and the qualified commercial clean vehicle credit. The form is for vehicles you placed in service during the tax year. IRS: Form 8936 (2025)
The September 30, 2025 cutoff
You cannot claim a new, previously owned, or commercial clean vehicle credit for a vehicle acquired after September 30, 2025. The IRS lists this change under What's New in the 2025 instructions. IRS: Instructions for Form 8936 (2025), What's New
What "acquired" means
A vehicle is acquired on the date a written binding contract is entered into and a payment has been made. A payment includes a small down payment or a trade-in. So the date of the contract and the first payment matter, not only the day you drove it home. The instructions explain this in the New Clean Vehicle Credit section.
The new clean vehicle credit
The new vehicle must have a manufacturer's suggested retail amount of no more than $55,000, or $80,000 for a van, SUV, or pickup truck. It must have had final assembly in North America. It must meet the battery requirements that apply in the year it is placed in service. The income limit is $150,000 of modified adjusted gross income, $300,000 if you file jointly, and $225,000 for head of household. The form sets these limits for 2024 and 2025 income. Read Part I of Form 8936.
The previously owned credit
The previously owned credit is the lesser of $4,000 or 30% of the sales amount for the vehicle. The vehicle must have been made by a qualified manufacturer, and the form has its own income limit. Use Parts I and IV of Form 8936 and Parts I and IV of Schedule A for this credit.
Transferring the credit at the dealer
Some buyers transfer the credit to a registered dealer at the time of sale. The dealer uses it to reduce what you pay at the sale. If you did that, you still must file Form 8936 and Schedule A for the year you placed the vehicle in service. The form reconciles the amount. IRS: Instructions for Form 8936 (2025), Credit transfer
Business use
If you use the vehicle for business or to produce income, the business part of the credit is a general business credit. It goes on Form 3800, General Business Credit, Part III, instead of the personal part. Partnerships and S corporations file Form 8936 to claim the credit and pass it through. Read Form 3800 basics for how the business credit is reported.
If the vehicle stops qualifying
If the vehicle later no longer meets the rules, the instructions describe a recapture of part or all of the credit. Keep the purchase papers, the VIN, and the placed-in-service date with your tax records.
Do not mix it up with home charger credits
Charging equipment for a vehicle at a home is a different credit from the vehicle credit. Read Form 8911 for the refueling property credit. For home energy items, read the residential clean energy credit rules.
Two dates to check
The acquisition date and the placed-in-service date are different tests. A contract signed in one year and a vehicle delivered in another can point to different years. Read both rules in the instructions before you decide which tax year the credit belongs to.
Which parts of the form you use
The form and the schedule are split into parts by credit type. New vehicle credit: Parts I, II, and III of Form 8936, with Schedule A for the amount. Previously owned credit: Parts I and IV. Commercial credit: Parts I and V of Schedule A. Read the parts that match the vehicle you bought, and skip the rest.
General information, not advice about your situation.
Sources: Sources: IRS, Form 8936 (2025), Clean Vehicle Credits (https://www.irs.gov/pub/irs-pdf/f8936.pdf); IRS, Instructions for Form 8936 (2025) (https://www.irs.gov/pub/irs-pdf/i8936.pdf) This is general information, not advice about your specific return.
