Form 8834

Department of the Treasury

Internal Revenue Service

Qualified Electric Vehicle Credit OMB No. 1545-1374

Attachment

Sequence No. 111

 Attach to your tax return.

Part I

Part II

Name(s) shown on return Identifying number

Tentative Credit

Cost of vehicle

Section 179 expense deduction (see instructions)

Subtract line 3 from line 2

For a vehicle placed in service before 2006, multiply

line 4 by 10% (.10). For a vehicle placed in service in

2006, multiply line 4 by 2.5% (.025) (see instructions).

Maximum credit per vehicle. For a vehicle placed in

service before 2006, enter $4,000. For a vehicle placed

in service in 2006, enter $1,000 (see instructions).

Enter the smaller of line 5 or line 6

Add columns (a) through (c) on line 7

Passive activity credits included on line 10 (see instructions)

Subtract line 11 from line 10

Passive activity credits allowed for 2005 (see instructions)

Tentative qualified electric vehicle credit. Add lines 12 and 13 

Allowable Credit

Regular tax before credits.

● Individuals. Enter the amount from Form 1040, line 44.

● Corporations. Enter the amount from Form 1120, Schedule J, line 3.

● Other filers. Enter the regular tax before credits from your return.

Credits that reduce regular tax before the qualified electric vehicle credit:

Credits from Form 1040, lines 48 through 54

Foreign tax credit

Nonconventional source fuel credit (Form 8907, line 23)

Add lines 16a through 16d

Net regular tax. Subtract line 16e from line 15. If zero or less, do not file this form; you cannot

claim this credit

Tentative minimum tax (see instructions).

● Individuals. Enter the amount from Form 6251, line 33.

● Corporations. Enter the amount from Form 4626, line 12.

● Estates and trusts. Enter the amount from Form 1041, Schedule I, line 54.

Subtract line 18 from line 17. If zero or less, do not file this form; you cannot claim this credit

Qualified electric vehicle credit. Enter the smaller of line 14 or 19 here and on Form 1040, line

55; Form 1120, Schedule J, line 6c; Form 1041, Schedule G, line 2b; or the appropriate line of

your return. If line 19 is smaller than line 14, see instructions 

2

3

4

5

6

7

10

11

12

13

14

15

a

b

c

16

17

18

19

2

3

4

5

6

10

11

12

13



15

16a

16b

16e

17

18

19

20

(a) (b) (c)

Cat. No. 14953G Form 8834 (2005)

Possessions tax credit (Form 5735, line 17 or 27)

If you are a: Then enter the total electric vehicle credits from:

Shareholder Schedule K-1 (Form 1120S), box 13, code F, G, or U

8

9 Qualified electric vehicle credits from pass-through entities:

Add lines 8 and 9

9

8



 See instructions on back.

Partner Schedule K-1 (Form 1065), box 15, code F, G, or U

For Paperwork Reduction Act Notice, see back of form.



Use a separate column for each vehicle. If you need more columns,

use additional Forms 8834 and include the total on line 8.

d

e

16c

16d

1 Enter date vehicle placed in service (MM/DD/YYYY) 1 // // //

14

20

7

2005
Qualified Electric Vehicle

A qualified electric vehicle is any motor vehicle if all of the

following apply.

● Manufactured primarily for use on public streets, roads, and

highways, and has at least four wheels.

● Powered primarily by an electric motor drawing current from

rechargeable batteries, fuel cells, or other portable sources of

electrical current.

● Originally used by you.

● Acquired for your own use and not for resale.

Exceptions. The qualified electric vehicle credit does not apply

to vehicles that are:

● Used primarily outside the United States,

● Used by a governmental unit or agency or any foreign person

or entity, or

● Used by a tax-exempt organization (other than a section 521

farmers’ cooperative) unless the property is used mainly in an

unrelated trade or business taxed under section 511.

See section 50(b) for details and other exceptions that may

apply.

Form 8834 (2005) Page 2

Recapture of Credit

If the vehicle no longer qualifies for the credit within 3 years of

the date you placed it in service, you must recapture part or all

of the credit. Generally, no recapture occurs on the sale or other

disposition of the vehicle (including a disposition resulting from

an accident or other casualty). However, if the vehicle will be

Specific Instructions

Line 3

Line 11

Line 13

Line 18

● Operated exclusively on a rail or rails,

Unless you elect not to take the credit, you must reduce the

basis of each vehicle by the amount of the credit entered on 

line 7 for that vehicle.

Enter the amount of any credits included on line 10 that are from

a passive activity. Generally, a passive activity is a business

activity in which you did not materially participate. Rental

activities are generally passive activities, whether or not you

materially participate. See Form 8582-CR, Passive Activity Credit

Limitations, or Form 8810, Corporate Passive Activity Loss and

Credit Limitations, for details.

Enter the qualified electric vehicle passive activity credits allowed

for 2005 from Form 8582-CR or Form 8810. See the instructions

for the applicable form for more information.

Although you may not owe alternative minimum tax (AMT), you

generally must still figure the tentative minimum tax (TMT) to

figure your credit. For a small corporation exempt from the AMT

under section 55(e), enter -0-. Otherwise, complete and attach the

applicable AMT form or schedule and enter the TMT on line 18.

Printed on recycled paper

General Instructions

Section references are to the Internal Revenue Code.

Purpose of Form

Use Form 8834 to figure the credit for qualified electric vehicles

placed in service during the tax year.

Paperwork Reduction Act Notice. We ask for the information

on this form to carry out the Internal Revenue laws of the United

States. You are required to give us the information. We need it

to ensure that you are complying with these laws and to allow us

to figure and collect the right amount of tax.

The time needed to complete and file this form will vary

depending on individual circumstances. The estimated burden

for individual taxpayers filing this form is approved under OMB

control number 1545-0074 and is included in the estimates

shown in the instructions for their individual income tax return.

The estimated burden for all other taxpayers who file this form is

shown below.

If you have comments concerning the accuracy of these time

estimates or suggestions for making this form simpler, we would

be happy to hear from you. See the instructions for the tax

return with which this form is filed.

Line 20

If you cannot use part of the credit because of the tax liability

limit, the unused credit is lost. The unused or excess credit

cannot be carried back or forward to other tax years.

You are not required to provide the information requested on

a form that is subject to the Paperwork Reduction Act unless the

form displays a valid OMB control number. Books or records

relating to a form or its instructions must be retained as long as

their contents may become material in the administration of any

Internal Revenue law. Generally, tax returns and return

information are confidential, as required by section 6103.

Amount of Credit

Basis Reduction

Enter any section 179 expense deduction you claimed for this

vehicle from Part I of Form 4562, Depreciation and Amortization.

Recordkeeping 5 hr., 58 min.

Learning about the law or the form 30 min.

Preparing, copying, assembling, and

sending the form to the IRS 37 min.

Gasoline/electric hybrid vehicles that are not

powered primarily by an electric motor are not

qualified electric vehicles. These hybrid vehicles

include the Ford Escape Hybrid, Honda Accord

Hybrid, Honda Insight, Honda Civic Hybrid, Lexus

RX 400h, Mercury Mariner Hybrid, Toyota Highlander Hybrid, and

Toyota Prius. However, for vehicles placed in service in 2005,

part of the cost of these vehicles (up to $2,000 for a vehicle with

a gross vehicle weight rating that does not exceed 10,000

pounds) may qualify for the deduction for clean-fuel vehicles,

even if you do not use the vehicle for business purposes. See

Pub. 535, Business Expenses, for more details.

The credit for each qualified electric vehicle is:

What’s New

For qualified electric vehicles placed in service in 2006, the

credit is reduced by 75%.

modified after you dispose of it so that it no longer qualifies for

the credit, the credit may be subject to recapture. See Pub. 535

for details.

CAUTION

● 10% of the vehicle’s cost reduced by any section 179

deduction, up to a maximum credit of $4,000, for each qualified

electric vehicle placed in service before 2006, and

● 2.5% of the vehicle’s cost reduced by any section 179

deduction, up to a maximum credit of $1,000, for each qualified

electric vehicle placed in service in 2006.

Lines 5 and 6

Do not claim the credit for a vehicle placed in service in 2006

unless you are a fiscal year taxpayer who placed the vehicle in

service before the end of your 2005-2006 fiscal year.