The Alternative Motor Vehicle Credit expired in 2021. For tax year 2022, this credit is only available for a vehicle purchased in 2021 but not placed in service until 2022.
For tax years 2005 to 2021, taxpayers and businesses have been able to take advantage of a nonrefundable tax credit for purchasing an alternative motor vehicle. The kind of vehicle that qualified for the credit varied over the years:
- Advanced lean burn technology vehicle (2005-2011) - A vehicle with a direct injection internal combustion engine.
- Qualified hybrid vehicle (2005-2011) - A vehicle with an internal combustion or heat engine that uses consumable fuel plus a rechargeable energy storage system.
- Qualified alternative fuel vehicle (2005-2011) - A vehicle fueled by compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, any liquid that is at least 85 percent methanol, or a mixture of one of these fuels and a petroleum-based fuel.
- Qualified plug-in electric drive motor vehicle (2009-2011) - A vehicle converted to be powered by an electric motor using rechargeable batteries.
- Qualified fuel cell vehicle (2005-2021) - A vehicle powered by one or more cells using energy created by combining oxygen with hydrogen fuel.
Be sure to read the form instructions to ensure the vehicle qualifies for the credit.
If the credit is coming from a partnership or S corp, the business will file Form 8910 and report the credit to the taxpayer partner/shareholder on Schedule K-1, and the taxpayer will report it on their individual return as a general business credit on Form 3800.
This credit is unrelated to the Electric Vehicle Credit claimed on Form 8834 (available for vehicles purchased new between February 18, 2009 and December 31, 2011, and after 2011 only available as a passive activity credit carryforward from a prior year.) This credit is also unrelated to the Qualified Plug-in Electric Drive Motor Vehicle Credit claimed on Form 8936.
To complete Form 8910 in TaxSlayer ProWeb, from the Federal Section of the tax return (Form 1040) select:
- Alternative Motor Vehicle Credit (Form 8910)
Note: This article is to provide guidance on entering IRS Form 8910 in TaxSlayer ProWeb. It is not intended as tax advice.
IRS: Instructions for Form 8910
IRS: Qualified Alternative Fuel Motor Vehicles (archival material)