Taxpayers may file IRS Form 8910, Alternative Motor Vehicle Credit to calculate and claim the credit. If the purchased vehicle is a depreciable asset used in a business, claim the credit as a General Business Credit and attach Form 3800. If the vehicle is not a depreciable asset, claim a personal tax credit attached to Form 1040.
The alternative motor vehicle credit expired for vehicles purchased after 2017. However, if the taxpayer purchased the vehicle in 2017 but placed it in service during 2018, he / she may still be able to claim the credit for 2018.
Partnerships and S corporations must file Form 8910 to claim the credit. All other taxpayers are not required to complete or file this form if their only source for this credit is a partnership or S corporation. Instead, report this credit on line 1r in Part III of Form 3800, General Business Credit.
Alternative Motor Vehicle
An alternative motor vehicle is a vehicle with at least four wheels that qualifies as a Qualified Fuel Cell Vehicle. A Qualified Fuel Cell Vehicle is a new vehicle propelled by power derived from one or more cells that convert chemical energy directly into electricity by combining oxygen with hydrogen fuel.
The manufacturer or distributor of the vehicle can provide the taxpayer with a letter of certification for the IRS for purposes of claiming the alternative motor vehicle credit. The taxpayer can generally rely on the manufacturer's certification to the IRS that a specific make, model, and model year vehicle qualified for the credit and the amount of credit for which it qualifies.
Requirements to Claim the Credit
- The taxpayer must be the owner of the vehicle.
- The vehicle was placed in service during the tax year.
- The original use of the vehicle began with the taxpayer.
- The taxpayer acquired the vehicle for use or lease to others, and not for resale.
- The vehicle is used primarily in the United States.
Information Prior to 2018
NOTE: This credit expired December 31, 2010. It is not to be used for any vehicles purchased after that date. For detailed IRS information pertaining to the Alternative Motor Vehicle Credit, please click here. To review the instructions for Form 8910, click here.
To access Form 8910 in the tax program, from the Main Menu of the Tax Return (Form 1040) select:
- Credits Menu
- General Business Credit (3800)
- Current Year General Business Credits
- Form 8910