Form 8936, with Schedule A, is the IRS form for the new clean vehicle credit, the previously owned clean vehicle credit and the qualified commercial clean vehicle credit. The 2025 instructions add a hard stop: you can't claim any of the three for a vehicle acquired after September 30, 2025. A vehicle counts as acquired once a written binding contract is signed and a payment is made, and a nominal down payment or a trade-in counts as a payment.
So the form still matters for 2025 returns, and for anyone who locked in a deal on or before that date. Everything below comes from the IRS Instructions for Form 8936 and Schedule A (2025), checked in October 2026.
The three credits at a glance
| New clean vehicle | Previously owned clean vehicle | |
|---|---|---|
| Form parts | Form 8936 Parts I, II and III; Schedule A Parts I to III | Form 8936 Parts I and IV; Schedule A Parts I and IV |
| Price cap | MSRP up to $55,000, or $80,000 for a van, SUV or pickup | Sales price up to $25,000 |
| Credit amount | Figured per vehicle on Schedule A | The lesser of $4,000 or 30% of the sales price |
| Income limit (modified AGI) | $150,000; $300,000 joint or surviving spouse; $225,000 head of household | $75,000; $150,000 joint or surviving spouse; $112,500 head of household |
| Acquired after September 30, 2025 | No credit | No credit |
The qualified commercial clean vehicle credit is a business credit with its own rules. Its amount per vehicle is limited to $7,500, or $40,000 for a vehicle with a gross vehicle weight rating of 14,000 pounds or more, and the same September 30, 2025 acquisition cutoff applies.
All figures are as of October 2026. For the new and used credits, the income test uses your modified AGI for the current year or the year before, so a high-income year doesn't knock you out if the other year was under the limit.
What qualifies as a new clean vehicle
- At least four wheels and placed in service after 2022.
- Propelled to a significant extent by an electric motor drawing from a battery of at least 7 kilowatt hours that can be recharged from an external source.
- Made mainly for use on public streets, roads and highways, with a gross vehicle weight rating under 14,000 pounds.
- Final assembly in North America.
- An MSRP within the cap, and the critical mineral and battery component requirements checked on the manufacturer's report.
What qualifies as a used clean vehicle
- A model year at least 2 years earlier than the calendar year you acquire it.
- Its original use began with someone other than you.
- A sales price of no more than $25,000.
- Bought from a dealer, and the first transfer since August 16, 2022 to an individual eligible to claim the credit.
- The same battery, road-use and weight rules as a new vehicle, from a qualified manufacturer that reports VINs to the IRS.
If you took the credit at the dealership
For vehicles placed in service after 2023, you could transfer the credit to a registered dealer and get the benefit as a lower price, a partial payment or a down payment, instead of waiting for your refund. The instructions are firm about what happens next: if you transferred the credit, you must still file Form 8936 and Schedule A with your return for the year the vehicle was placed in service.
That's also where the income limit bites. The instructions say that if you transferred the credit to the dealer and you no longer qualify when you file, for example because your modified AGI was over the limit, you must repay the amount of the credit you transferred. Check the numbers before you file rather than assuming the dealer handled everything.
How to claim it
- Get the seller's report. The dealer must give you and the IRS a report with your name and taxpayer number, the vehicle's VIN and other details needed for the credit. Since 2024, sellers file it through the IRS Energy Credits Online portal.
- Confirm the acquisition date: a written binding contract and a payment on or before September 30, 2025.
- Complete Part I of Form 8936 to figure modified AGI for the current and prior year.
- Complete Schedule A for each vehicle, then carry the totals to the right part of Form 8936.
- Split business and personal use. The business part of a new clean vehicle credit is a general business credit; the rest is a personal credit.
- Attach Form 8936 and Schedule A to your return.
The business part ends up on Form 3800 with your other general business credits. If you bought a qualifying vehicle and left the credit off a return you've already filed, Form 1040-X is how you add it.
Two rules couples and buyers miss
- Only one return can claim the credit for a vehicle. The IRS example: a newly married couple puts both names on the title but files separately, so only one spouse can claim it.
- If the vehicle stops qualifying, you may have to recapture part or all of the credit under the section 30D regulations.
- Partnerships and S corporations file the form themselves; their partners and shareholders can report the credit straight on Form 3800 instead if that's their only source of it.
The verdict
If you acquired an electric or plug-in vehicle by September 30, 2025, check three things before filing: the date your contract and payment were made, your modified AGI in both years, and the seller's report. If any of those is off, fix it now. If you're shopping for a vehicle today, the instructions are plain that there's no federal clean vehicle credit for a purchase made after that date.
Upgrades to the house have a separate credit, and our guide to home energy credits explains what ends now.
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Frequently asked questions
What is Form 8936 used for?
To figure the new clean vehicle credit, the previously owned clean vehicle credit and the qualified commercial clean vehicle credit, with Schedule A for each vehicle.
Can I claim the EV credit for a car bought in 2026?
No. The 2025 instructions say you can't claim any clean vehicle credit for a vehicle acquired after September 30, 2025.
When is a vehicle acquired for the clean vehicle credit?
When a written binding contract is entered into and a payment has been made. A nominal down payment or a trade-in counts as a payment.
What are the income limits for the new clean vehicle credit?
Modified AGI of $150,000, or $300,000 married filing jointly or qualifying surviving spouse, or $225,000 head of household, in either the current or prior year.
How much is the used clean vehicle credit?
The lesser of $4,000 or 30% of the sales price, and the sales price can't be more than $25,000.
Do I file Form 8936 if the dealer gave me the credit?
Yes. If you transferred the credit to the dealer, you must file Form 8936 and Schedule A with your return for the year the vehicle was placed in service.
