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• You acquired the vehicle for use or to lease to others, and not for resale. • You use the vehicle primarily in the United States. Exception. If you are the seller of a qualified plug-in electric drive motor vehicle or qualified two-wheeled plug-in electric vehicle to a tax-exempt organization, governmental unit, or a foreign person or entity, and the use of that vehicle is described in section 50(b)(3) or (4), you can claim the credit, but only if you clearly disclose in writing to the purchaser the amount of the tentative credit allowable for the vehicle (from line 11 of Form 8936). Treat all vehicles eligible for this exception as business/ investment property. If you elect to claim the credit, you must reduce cost of goods sold by the amount you entered on line 11 for that vehicle. More information. For details, see the following. • Section 30D. • Notice 2009-89, 2009-48 I.R.B. 714, available at IRS.gov/irb/2009-48_IRB#NOT-2009-89. • Notice 2013-67, 2013-45 I.R.B. 470, available at IRS.gov/irb/2013-45_IRB#NOT-2013-67. • Notice 2016-51, 2016-37 I.R.B. 344, available at IRS.gov/irb/2016-37_IRB#NOT-2016-51. Credit Phaseout The credit for vehicles with at least four wheels is subject to a phaseout (reduction) once the vehicle manufacturer (or, for a foreign manufacturer, its U.S. distributor) sells 200,000 of these vehicles to a retailer for use in the United States after 2009. The phaseout begins in the second calendar quarter after the quarter in which the 200,000th vehicle was sold. Then the phaseout allows 50% of the full credit for 2 quarters, 25% of the full credit for 2 additional quarters, and no credit thereafter. Basis Reduction Unless you elect not to claim the credit, you may have to reduce the basis of each vehicle by the sum of the amounts entered on lines 11 and 18 for that vehicle. Coordination With Other Credits A vehicle that qualifies for the qualified plug-in electric drive motor vehicle credit on this form cannot be used to claim the alternative motor vehicle credit on Form 8910. Recapture of Credit If the vehicle no longer qualifies for the credit, you may have to recapture part or all of the credit. For details, see section 30D(f)(5). Specific Instructions Line 2 Enter the vehicle's vehicle identification number (VIN) on line 2. The VIN of a vehicle can be obtained from the registration, title, proof of insurance, or actual vehicle. Generally, the VIN is 17 characters made up of numbers and letters. Line 4a For two-wheeled vehicles, enter the cost of the vehicle you entered on line 1. For vehicles with at least four wheels, enter the credit allowable for the year, make, and model of vehicle you entered on line 1. You can generally rely on the manufacturer’s (or domestic distributor’s) certification to the IRS of the credit allowable as explained above. Tentative credit amounts acknowledged by the IRS are available at IRS.gov/pluginvehiclecreditamounts. For any vehicles subject to a reduced credit (discussed next), enter the original unreduced credit amount on line 4a. Line 4b Enter 100% unless the vehicle was a vehicle with at least four wheels manufactured by Tesla or General Motors (Chevrolet Bolt EV, etc.). Tesla. The credit is not available for Tesla vehicles acquired after December 31, 2019. For more information, see Notice 2018-96, 2018-52 I.R.B.1061, available at IRS.gov/irb/2018-52_IRB#NOT-2018-96. General Motors. The credit is not available for General Motors vehicles acquired after March 31, 2020. For more information, see Notice 2019-22, 2019-14 I.R.B. 931, available at IRS.gov/irb/2019-14_IRB#NOT-2019-22. Line 5 Enter the percentage of business/investment use. Enter 100% if the vehicle is used solely for business purposes or you are claiming the credit as the seller of the vehicle. If the vehicle is used for both business purposes and personal purposes, determine the percentage of business use by dividing the number of miles the vehicle is driven during the year for business purposes or for the production of income (not to include any commuting mileage) by the total number of miles the vehicle is driven for all purposes. Treat vehicles used by your employees as being used 100% for business/investment purposes if the value of personal use is included in the employees’ gross income, or the employees reimburse you for the personal use. If you report the amount of personal use of the vehicle in your employee’s gross income and withhold the appropriate taxes, enter “100%” for the percentage of business/investment use. If during the tax year you convert property used solely for personal purposes to business/investment use (or vice versa), figure the percentage of business/investment use only for the number of months you use the property in your business or for the production of income. Multiply that percentage by the number of months you use the property in your business or for the production of income and divide the result by 12. For example, if you converted a vehicle to 50% business use for the last 6 months of the year, you would enter 25% on line 5 (50% multiplied by 6 divided by 12). For more information, see Pub. 463, Travel, Gift, and Car Expenses. CAUTION ! -2- Instructions for Form 8936 (Rev. 1-2022)