What the Form Is For

Schedule A (Form 8936) is the worksheet you use to calculate the exact dollar amount of tax credit you can claim when you buy an eligible electric or hydrogen fuel cell vehicle. Think of it as your “show your work” page that breaks down the credit calculation for each individual vehicle you purchased in 2024.

You'll need to complete a separate Schedule A for each qualifying vehicle you buy, and then attach all of them to Form 8936 (the main form) when you file your tax return. Together, these forms help you claim one of three possible clean vehicle credits:

• New Clean Vehicle Credit (up to $7,500 for new EVs)
• Previously Owned Clean Vehicle Credit (up to $4,000 for used EVs)
• Qualified Commercial Clean Vehicle Credit (up to $7,500 for light-duty vehicles or $40,000 for heavier commercial vehicles)

The schedule walks you through vehicle details like the VIN (vehicle identification number), when you placed the vehicle in service, whether you're using it for business or personal purposes, and the specific credit calculations based on your situation.
Source: IRS.gov/Form8936

When You’d Use Schedule A (Late Filing or Amended Returns)

Late Filing

If you bought a qualifying clean vehicle in 2024 but forgot to claim the credit on your original return, you can still file an amended return using Form 1040-X. You'll need to attach Form 8936 and the corresponding Schedule A to claim the credit you missed. However, you generally have only three years from the original filing deadline to amend your return and claim the credit, so don't delay.

Amended Returns

If you discover an error after filing—perhaps you calculated the wrong credit amount, entered incorrect vehicle information, or your income situation changed—you can file Form 1040-X with corrected Form 8936 and Schedule A forms.

Important Caveat About Timing

If you transferred the credit to the dealer at the time of purchase (taking the discount upfront), you're required to file Form 8936 and Schedule A with your return for that tax year, even if you received the benefit immediately. This isn't optional—it's a reconciliation requirement.
If you later discover you didn't qualify for the credit (for example, your modified adjusted gross income was too high), you must repay the transferred amount to the IRS.
Source: IRS.gov/CleanVehicles

Key Rules for 2024

Income Limits Matter Most

Your modified adjusted gross income (MAGI) must fall below specific thresholds based on either your 2023 or 2024 income—whichever is lower.

• New vehicles: $300,000 (married filing jointly), $225,000 (head of household), or $150,000 (single/other filers)
• Previously owned vehicles: $150,000 (joint), $112,500 (head of household), or $75,000 (single/other)

If your MAGI exceeds these limits in both years, you're ineligible—period.
Source: IRS.gov/Instructions/i8936

Vehicle Price Caps

• New clean vehicles must have an MSRP of $55,000 or less ($80,000 for vans, SUVs, and pickups).
• Previously owned clean vehicles cannot exceed a sale price of $25,000—no exceptions.

North American Assembly Requirement

For new vehicles, final assembly must occur in North America. Imported EVs that don’t meet this are excluded from eligibility.

Battery and Critical Mineral Requirements

New clean vehicles must meet specific battery capacity minimums (at least 7 kWh) and certified sourcing requirements for components and minerals. These are verified by manufacturers.

Seller Reporting Mandate

Starting January 1, 2024, dealers must submit seller reports via the IRS Energy Credits Online (ECO) portal. You cannot claim the credit without this documentation.
Always get your copy of the Clean Vehicle Seller Report (Form 15400) before leaving the dealership.
Source: IRS.gov/CleanVehicles

One-Time Use Rules

• For new vehicles: Each VIN can qualify only once based on “original use.”
• For previously owned vehicles: The credit applies only on the first eligible transfer after August 16, 2022.
• You can only claim one previously owned clean vehicle credit every three years.

Step-by-Step: How to Complete Schedule A (High Level)

Step 1: Gather Your Documentation

Collect your Clean Vehicle Seller Report from the dealer, purchase documents, VIN information, and vehicle specifications. Verify your vehicle appears on the IRS’s qualified vehicle list.

Step 2: Complete Part I (Vehicle Details)

Enter:

• Your name and taxpayer ID
• The vehicle’s VIN
• Date placed in service
• Whether you made a credit transfer election
• Type of vehicle (new, used, commercial)

Step 3: Calculate Modified AGI (on Form 8936, Part I)

Enter your modified AGI for both 2024 and 2023. You qualify only if both years are below the applicable income threshold.
Source: IRS.gov/Instructions/i8936

Step 4: Calculate Credit Amount (Parts II–V of Schedule A)

Complete the appropriate part based on your vehicle type:

• Part II: Business/investment use for new clean vehicles
• Part III: Personal use for new clean vehicles (includes income phaseout)
• Part IV: Previously owned clean vehicles (lesser of $4,000 or 30% of price)
• Part V: Qualified commercial clean vehicles (15% or 30% of cost or incremental cost difference)

Step 5: Apply Business Use Percentage (if applicable)

If your vehicle has both personal and business use, divide business miles by total miles driven. This determines what portion of the credit qualifies as a business credit.

Step 6: Transfer to Form 8936

Transfer the totals from each Schedule A to the main Form 8936, and attach both to your Form 1040.

Common Mistakes and How to Avoid Them

Mistake #1: Assuming You Qualify Without Checking Both Years’ Income

Solution: Verify your modified AGI for both 2023 and 2024 before purchase.

Mistake #2: Leaving the Dealership Without the Seller Report

Solution: Ensure your dealer generates and files the Clean Vehicle Seller Report immediately.
Source: IRS.gov/Credits-Deductions

Mistake #3: Entering Incorrect VIN Information

Solution: Double-check every VIN character. Remember, VINs never contain “O,” “Q,” or “I.”

Mistake #4: Not Understanding Credit Transfer Implications

Solution: Even if you transferred the credit, you must still file Form 8936 and Schedule A. Treat the credit as an “advance” subject to reconciliation.

Mistake #5: Confusing Unused Personal Credit with Business Credit

Solution: Personal credits cannot be refunded or carried forward. Estimate your tax liability beforehand.

Mistake #6: Claiming the Wrong Vehicle Type

Solution: Choose carefully between the new clean vehicle credit and the commercial vehicle credit.
Source: IRS.gov/Instructions/i8936

Mistake #7: Not Reducing Vehicle Basis

Solution: Reduce your vehicle’s basis by the credit amount claimed. This prevents future depreciation or gain calculation errors.

What Happens After You File

Normal Processing

The IRS processes your clean vehicle credit with your return. Expect normal refund timing—typically 21 days for e-filed returns.

Verification and Audits

The IRS may verify your VIN and seller report via the ECO database. Discrepancies may trigger documentation requests or adjustments.

Transfer Reconciliation

If you transferred the credit to a dealer, the IRS reconciles your eligibility. If you didn’t qualify, you’ll have to repay the transferred amount as additional tax.
Source: IRS.gov/Credits-Deductions

Recapture Events

In rare cases (e.g., converting business to personal use), part or all of the credit may be recaptured and repaid later.

Basis Reduction Impact

Your credit reduces your vehicle’s basis, which affects depreciation and gain/loss calculations when selling the vehicle.

FAQs

Q1: Can I claim the clean vehicle credit if I lease rather than purchase?

No. Only the lessor (leasing company) can claim the credit, though they may pass savings to you via lease terms.
Source: IRS.gov/Instructions/i8936

Q2: What happens if I buy a vehicle in December 2024 but don’t receive it until January 2025?

The credit applies when the vehicle is placed in service—usually when you take possession. You’d claim it on your 2025 tax return.

Q3: I transferred the credit to the dealer but now realize my income is too high. What do I do?

You must file Form 8936 and Schedule A to show the transfer, but you’ll need to repay the credit as additional tax on Schedule 2 (Form 1040), line 1b.
Source: IRS.gov/Instructions/i8936

Q4: Can married couples filing separately both claim the credit for the same vehicle?

No. Only one taxpayer can claim the credit per vehicle, regardless of whose name is on the title.

Q5: What if my vehicle qualifies for both the new and commercial clean vehicle credits?

You must choose one. Generally, the commercial credit is better for heavier vehicles or higher incremental costs.

Q6: I bought a used EV for $20,000. Do I get a $4,000 or $6,000 credit?

The credit is the lesser of $4,000 or 30% of the sale price. Here, you’d claim $4,000.

Q7: Can I claim the previously owned clean vehicle credit more than once?

Yes, but only once every three years. Each VIN can qualify only once under the “previously owned” credit.
Source: IRS.gov/Credits-Deductions