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Entering corporate Qualified Plug-in Electric Drive Motor Vehicle Credit information in Lacerte

SOLVEDby Intuit11Updated 2 days ago

This article will assist you with entering information related to the Qualified Plug-in Electric Drive Motor Vehicle Credit in the Corporate module of Lacerte.

 

NOTE: Changes made to Form 8936 for TY23 include:

  • A new clean vehicle credit for new electric vehicles meeting specific requirements
  • A credit for previously owned clean vehicles
  • A credit for qualified commercial clean vehicles

Tax-exempt and governmental entities may also elect to treat their credits as a payment of income tax. However, credit for plug-in electric-drive motor vehicles is no longer available for vehicles placed in service after 2022 and final assembly of the vehicle must occur within North America for vehicles purchased after August 16, 2022. See here for more details.

 

There aren't any inputs related to this credit in Screen 21, Depreciation.

Follow these steps to enter information about the Qualified Plug-in Electric Drive Motor Vehicle Credit :

For tax year 2023

  1. Go to Screen 28.1, General Business Credits.
  2. Locate the Clean Vehicle Credit (8936) section.
  3. Begin by entering the Part I: Vehicle Details: Year (e.g. 2023), MakeModelVehicle identification number (VIN), __ and Date placed in service.
  4. Continue by answering the questions presented on Screen 34 in order, one at a time.
  5. If at any point the answer selected says to Go to the next questionGo to Part IIGo to Part IV, or Go to Part V, follow these 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 tax year 2022 and earlier

  1. Go to Screen 28, General Business Credits.
  2. Select  Clean Vehicle Credit (8936) from the left Sections list.
  3. Enter the applicable information in the Vehicle information, date placed in service, Kilowatt hour capacity, phaseout and business use (Ctrl+E) field.
  4. Enter an override for the credit amount in the Qualified plug-in electric drive motor vehicle credit [O] field, if applicable.

For tax year 2023, Form 3800 is undergoing a major IRS rewrite that expands the form to 8 pages. This form is still in development, pending a future release. Form 1120S and 1065 filers that require Form 3800 may want to consider filing extensions.

New for tax year 2023:

  • Pre-filing registration requirement. If you intend to make an elective payment election and/or a transfer election on Form 3800, you must complete a pre-filing registration before you file your tax return.
  • Elective payment election. Beginning with tax year 2023, certain applicable entities and electing taxpayers can elect to treat certain IRA 2022 business credits as elective payments. Certain eligible taxpayers can elect to treat CHIPS 2022 credits as elective payments. Any overpayments may result in refunds.
  • Transferring credits. Taxpayers may make an election to transfer all or a portion of certain IRA 2022 credits.
  • See IRS instructions for 3800 for more information.

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