Filing Form 8936 and calculating plug-in electric drive vehicle credits in ProSeries

New for Form 8936 for tax year 2024:

• For vehicles placed in service after December 31, 2023, the seller must file the seller report through the IRS Energy Credits Online (ECO) portal.
• Transfer of new clean vehicle credit. For vehicles placed in service after 2023, you may be able to transfer the credit amount to the dealer. See the IRS instructions for more information. If you elect to transfer the credit, you must file Form 8936 and Schedule A (Form 8936) with your return for the tax year in which the vehicle was placed in service.

To generate Form 8936 in tax year 2023 and newer:

1. Open the tax return.
2. Press F6 to bring up Open Forms.
3. Type 8936A to highlight the Form 8936-A and click OK.
4. On the Create new copy line, enter the description of the vehicle and select Create.
   • Once you complete the 8936-A for the first vehicle, you can select the QuickZoom to another Qualified Plug-in Electric Drive Motor Vehicle Credit Worksheet at the top of the 8936-A to add another vehicle.
5. Check the I certify the VIN number is correct checkbox at the top of the form.
6. Complete the Vehicle Detail Information Smart Worksheet.
7. Complete Part I through Part V as needed.
8. For 2024 returns, go to the 8936 and review the entries in Part I for the new Modified Adjusted Gross Income Amount.

To generate Form 8936 in tax year 2022 and prior:

1. Open the tax return.
2. Press F6 to bring up Open Forms.
3. Type 8936W to highlight the Form 8936 Wks and click OK.
4. On the Create New Copy line enter the description of the vehicle and select Create.
5. In Part I, Part II, Part III and Part IV enter the information about the vehicle.

When filing Form 8936, your client thought their plug-in electric vehicle qualified for a $7,500 credit, but the program is calculating a lesser amount. 

How ProSeries calculates electric vehicle credits

Here's a breakdown of how the program calculates electric vehicle credits:

The credit's current value of $2,500

• Plus $417 (if the battery stores at least 5 Kilowatt hours (KWh))
• Plus $417 for each KWh exceeding 5 KWhs

= your total vehicle credit.

For example, a car with a 10 KWh battery would be eligible for a credit of $5,002.

For more information about Form 8936, see About Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit.

You can find tentative credit amounts at Plug-In Electric Drive Vehicle Credit.