Generating Form 8936, Clean Vehicle Credit in ProConnect Tax

This article will help you generate Form 8936 in any tax module. If the information is for a passthrough or business activity, you need to indicate this in the program. See the additional set of instructions here.

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.

Select your desired tax module to see steps:

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.

Individual

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.

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Partnership

1. Go to the Input Return tab for the appropriate client.
2. From the table of contents, select Schedule K, then select Credits.
3. From the Credits section, select Clean Vehicle Credits.
4. Complete all fields in the Vehicle Details subsection.
5. Continue answering the questions presented in this section in the order indicated by your selections.
6. 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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Corporate

1. Go to the Input Return tab for the appropriate client.
2. From the table of contents, select Credits, then General Business Credits (3800).
3. From the General Business Credits (3800) section, select Clean Vehicle Credits.
4. Complete all fields in the Vehicle Details subsection.
5. Continue answering the questions presented in this section in the order indicated by your selections.
6. 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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S-Corp

1. Go to the Input Return tab for the appropriate client.
2. From the table of contents, select Schedule K, then select Credits.
3. From the Credits section, select Clean Vehicle Credits.
4. Complete all fields in the Vehicle Details subsection.
5. Continue answering the questions presented in this section in the order indicated by your selections.
6. 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 Kilowwatt hour capacity (x.xxx) field blank.

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