Form 8834

Department of the Treasury

Internal Revenue Service

Qualified Electric Vehicle Credit OMB No. 1545-1374

Attachment

Sequence No. 96

© 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 2 from line 1

Multiply line 3 by 10% (.10)

Maximum credit per vehicle

Enter the smaller of line 4 or line 5

Current year qualified electric vehicle credit. Add line 6, columns (a) through (c)

Passive activity credits included on line 9. See instructions

Subtract line 10 from line 9

Passive activity credits allowed for 1997. See instructions

Tentative qualified electric vehicle credit. Add lines 11 and 12 ©

Tax Liability Limitation

Regular tax before credits:

● Individuals. Enter the amount from Form 1040, line 39.

● 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:

Credit for child and dependent care expenses (Form 2441, line 9)

Credit for the elderly or the disabled (Schedule R (Form 1040),

line 20)

Mortgage interest credit (Form 8396, line 11)

Foreign tax credit (Form 1116, line 32, or Form 1118, Sch. B, Part III,

line 12)

Credit for fuel from a nonconventional source

Add lines 15a through 15h

Net regular tax. Subtract line 15i from line 14. 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 26.

● Corporations. Enter the amount from Form 4626, line 13.

● Estates and trusts. Enter the amount from Form 1041, Schedule I, line 38.

Excess of net regular tax over tentative minimum tax. Subtract line 17 from line 16. If zero or

less, do not file this form; you cannot claim this credit ©

Qualified electric vehicle credit. Enter the smaller of line 13 or line 18. Also enter on Form

1040, line 44; Form 1120, Schedule J, line 4c; Form 1041, Schedule G, line 2b; or the appropriate

line of other income tax returns. See instructions ©

1

2

3

4

5

6

7

10

11

12

13

14

15

a

b

c

f

h

i

16

17

18

19

1

2

3

4

5

6

7

10

11

12

13

%

14

15a

15b

15c

15f

15h

15i

16

17

18

19

(a) (b) (c)

4,000 4,000 4,000

Cat. No. 14953G Form 8834 (1997)

g Possessions tax credit (Form 5735) 15g

If you are a— Then enter total of current year qualified electric vehicle credit(s) from—

Shareholder Schedule K-1 (Form 1120S), lines 12d through 13

8 Credits from flow-through entities:

9 Total current year credit. Add lines 7 and 8 9

8 %

© See instructions on back.

Partner Schedule K-1 (Form 1065), lines 12c through 13

For Paperwork Reduction Act Notice, see back of form.

%

97

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

use additional Forms 8834 and include the total on line 7.

d Adoption credit (Form 8839, line 10)

e District of Columbia first-time homebuyer credit (Form 8859)

15d

15e
Qualified Electric Vehicle

A qualified electric vehicle is any motor vehicle that is:

● 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; and

● 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 (1997) 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.

Specific Instructions

Line 2

Line 10

Line 12

Line 17

● 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 6 for that vehicle.

Enter the amount of any credits included on line 9 that are

from a passive activity.

Enter the qualified electric vehicle passive activity credits

allowed for 1997 from Form 8582-CR or Form 8810. See the

instructions for the applicable form for more information.

Enter the tentative minimum tax that was figured on the

appropriate alternative minimum tax form. Although you may

not owe alternative minimum tax, you must still figure the

tentative minimum tax to figure your credit.

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 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

average time is:

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 19

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

liability limitation, 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

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 modified after you dispose of it so that it no longer

qualifies for the credit, the credit may be subject to

recapture. For details, see Pub. 535, Business Expenses.

Enter any section 179 expense deduction you claimed for

this vehicle from Part I of Form 4562, Depreciation and

Amortization.

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 more details.

The credit is 10% of the cost of the qualified electric vehicle.

The maximum credit you may take for each vehicle is

$4,000.

Recordkeeping 6 hr., 42 min.

Learning about the law or the form 30 min.

Preparing, copying, assembling, and

sending the form to the IRS 38 min.