Generating Form 8936, Clean Vehicle Credit in ProConnect Tax

Table of contents:

Beginning in tax year 2025:

Taxpayers can't claim clean vehicle credits for new, previously owned, or commercial clean vehicles that they acquired after September 30, 2025. See the IRS instructions here for more information.

Beginning in 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.

Generating Form 8936 is a Individual return in tax year 2023 to 2025:

1. Go to Input Return ⮕ General Business and Vehicle Cr.
2. If this is related to a business activity, in the Credits section, enter the Form (Click on arrow to select from list) using the dropdown, the Activity name or number, and Taxpayer, Spouse, or Joint (if applicable).
   • If this is not related to a business activity, continue to step 3.
3. Select the Vehicle tab to get to the Clean Vehicle Credits (8936) section.
4. For tax year 2024 start by entering the Modified Adjusted Gross Income. This is required for 2024 returns.
5. Complete all fields in the Vehicle Details subsection
6. Continue answering the questions presented in this section in the order indicated by your selections.
7. Follow the directions on the input screen until you complete the input and generate the form, or until you see Stop here which indicates the vehicle doesn't qualify for a credit.
   • If Part II is needed, an entry is required for tentative credit amount to generate the form.
8. If using the Elective Payment option, use the new Elective Payment fields.
   • If filing an elective payment on the Form 3800 the IRS requires a registration number that you must complete before filing the tax return. See here for more information.

For more Schedule C resources, check out our Tax topics page for Schedule C where you'll find answers to the most commonly asked questions.

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Generating Form 8936 is a S Corporation return in tax year 2023 to 2025:

1. Go to Input Return ⮕ Schedule K ⮕ Credits
2. Select Clean Vehicle Credits.
3. Complete all fields in the Vehicle Details subsection.
4. Continue answering the questions presented in this section in the order indicated by your selections.
5. Follow the directions on the input screen until you complete the input and generate the form, or until you see Stop here which indicates the vehicle doesn't qualify for a credit. 

For qualified four-wheeled plug-in electric vehicles, the manufacturer may have provided the tentative credit. If this is the case, you only need to enter the Tentative credit [Override] field and should leave the Kilowatt hour capacity (x.xxx) field blank.

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Generating Form 8936 is a Partnership return in tax year 2023 to 2025:

1. Go to Input Return ⮕ Schedule K ⮕ Credits
2. Select Clean Vehicle Credits.
3. Complete all fields in the Vehicle Details subsection.
4. Continue answering the questions presented in this section in the order indicated by your selections.
5. Follow the directions on the input screen until you complete the input and generate the form, or until you see Stop here which indicates the vehicle doesn't qualify for a credit.
   • If Part II is needed, an entry is required for tentative credit amount to generate the form.

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Generating Form 8936 is a Corporate return in tax year 2023 to 2025:

This form won't generate unless there are entries for the Cost of other basis of the vehicle and Incremental cost of the the vehicle.

1. Go to Input Return ⮕ General Business Credits (3800)
2. Select Clean Vehicle Credits.
3. Complete all fields in the Vehicle Details subsection.
4. Continue answering the questions presented in this section in the order indicated by your selections.
5. Follow the directions on the input screen until you complete the input and generate the form, or until you see Stop here which indicates the vehicle doesn't qualify for a credit. 

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Entering the information as a passthrough or business activity

1. Go to Input Return ⮕ Credits ⮕ General Business and Vehicle Cr.
2. Under the Credits section, select the type of Form (Click on arrow to select from list).
   • Schedule C
   • Schedule E (rental/royalty)
   • Schedule F/ Form 4835
   • Schedule E (partnership)
   • Schedule E (S corporation)
   • Schedule E (estate or trust)
3. Select the specific Activity name or number (Click on arrow to select from list) for this credit.
   • Click the plus sign (+) at the top of the screen to add additional activities.
4. From the top of the screen, select Vehicle.
5. Scroll down to the Clean Vehicle Credit section.
6. Under the Vehicle Information subsection, enter the Section 179 deduction, if applicable.
7. Under the Business or Investment Use Percentage subsection, enter information in the applicable fields:
   • Total mileage
   • Business mileage
   • Number of months of business/investment use (if not 12)
   • Plug-in electric drive motor vehicle credit from passthroughs (8936) (code 240)
8. Follow the above instructions for your vehicle.

 Note: If you've filled out the applicable information and you see it calculating on the form but the form is still not generating, check for income tax.  You can only use credit to offset tax.  

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Instructions for tax year 2022 and earlier

1. Go to Input Return ⮕ Credits ⮕ General Business and Vehicle Cr.
2. Select the Vehicle tab.
3. Scroll down to the Clean Vehicle Credits (8936) section.
4. Enter a 2 in 1=alternative motor vehicle (8910), 2=plug-in electric drive motor vehicle (8936) .
5. Complete the following fields in the Vehicle Information subsection:
   • Date placed in service
   • Vehicle identification number (VIN)
   • Year (e.g. 2016)
   • Make
   • Model
6. Under the Clean Vehicle Credits subsection, enter information in the applicable fields for your vehicle:
   • For the Two-Wheeled plug-in electric vehicle subsection, enter the Cost of two-wheeled vehicle.
   • For the At least Four-Wheeled plug-in electric vehicle subsection, enter the Kilowatt hour capacity (x.xxx) and Tentative credit [O].

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