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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 4

Cost or Tentative Credit

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 www.irs.gov/Businesses/Qualified-Vehicles-Acquired-after-12-31-2009. Or you can visit IRS.gov and search for “Plug-In Electric Drive Vehicle Credit (IRC 30D).

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, Entertainment, Gift, and Car Expenses.

Line 7

Enter any section 179 expense deduction you claimed for the vehicle from Part I of Form 4562, Depreciation and Amortization.

Line 13

Enter total qualified plug-in electric drive motor vehicle credits from:

  • Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc., box 15 (code P); and

  • Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc., box 13 (code P).

Partnerships and S corporations must always report the above credits on line 13. All other filers figuring a separate credit on earlier lines must also report the above credits on line 13. All others not using earlier lines to figure a separate credit can report the above credits directly on Form 3800, Part III, line 1y.

Line 21

Enter the total, if any, credits from Form 1040, lines 48 through 51 (or Form 1040NR, lines 46 through 48); Form 5695, line 30; Form 8910, line 15; and Schedule R, line 22.

Line 23

If you cannot use part of the personal portion of the credit because of the tax liability limit, the unused credit is lost. The unused personal portion of the credit cannot be carried back or forward to other tax years.


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