Updated October 18, 2026. Quick answer: Part III is the personal use part of the new clean vehicle credit. Line 9 is the total from Schedule A, lines 10 to 12 test it against the tax on your return, and line 13 is the smaller of line 9 or line 12. Line 13 goes to Schedule 3, line 6f.
What lines 9 to 13 ask for
Part III is headed “Credit for Personal Use Part of New Clean Vehicles”. Line 9 reads “Enter the total credit amount figured in Part III of Schedule(s) A (Form 8936)”. Line 10 reads “Enter the amount from Form 1040, 1040-SR, or 1040-NR, line 18” and line 11 reads “Personal credits from Form 1040, 1040-SR, or 1040-NR (see instructions)”. The instructions describe the Part as one of three used together: “Use Parts I, II, and III of Form 8936 to claim the credit for new clean vehicles.”
Where the numbers come from
Line 9 comes from Schedule A. Line 10 is the line 18 amount on your return, explained at Form 1040 lines 17 and 18. For line 11 the instructions say “Enter the total, if any, credits from Schedule 3 (Form 1040), lines 1 through 4, 5b, 6d, 6I, and 6m.” Those Schedule 3 lines are covered on the Schedule 3 lines 6f to 6k page. A tip says “must fill out Part II, even if they are not claiming a credit amount for business/investment use.” That is the Parts II and V page.
Lines 12 and 13
Line 12 says “Subtract line 11 from line 10.” “If zero or less, enter -0- and stop here. You can’t claim the personal use part of the credit”. Line 13 says “Personal use part of credit. Enter the smaller of line 9 or line 12 here and on Schedule 3 (Form 1040), line 6f.” “If line 12 is smaller than line 9, see instructions”.
If part of the credit goes unused
The line 13 instructions say “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.”
Vehicle rules the instructions list
The instructions list conditions you must meet, including “You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee is entitled to the credit.” “You placed the vehicle in service during the tax year.” “The original use of the vehicle began with you.” On the date, they say “You cannot claim the new clean vehicle credit for any vehicle acquired after September 30, 2025.” The vehicle definition, including its price cap, is printed in the instructions under New Clean Vehicle Credit, and the dealer’s seller report is described there too.
Where it goes next
Line 13 goes to Schedule 3, line 6f, which then flows to the credits section of your return, covered at Form 1040 lines 19, 20 and 21. The previously owned vehicle credit has its own lines on the Part IV, lines 14 to 18 page. The whole form is at Form 8936.
Edition and line numbers
This page reads the 2025 Form 8936, Clean Vehicle Credits and its 2025 instructions, the current files irs.gov served on 2026-10-18. They are the files for the tax year 2025 return, filed in 2026. The form’s own header says “Attach to your tax return.” Check the tax year printed on the form you are filling in and use the line numbers on that year’s form, because a different year’s form can number or word its lines differently.
Common mistakes
- Entering the full Schedule A amount when the tax limit bites. Line 13 says “Enter the smaller of line 9 or line 12 here and on Schedule 3 (Form 1040), line 6f.”
- Expecting to use an unused amount later. The instructions say “The unused personal portion of the credit cannot be carried back or forward to other tax years.”
- Skipping Part II. The tip says “A taxpayer claiming a credit amount for the personal use part of a new clean vehicle must fill out Part II”.
Related: Form 8936, Schedule 3 lines 6f to 6k, Form 1040 lines 17 and 18, and Form 1040 lines 19, 20 and 21.
Sources
- Instructions for Form 8936, Clean Vehicle Credits (and Schedule A (Form 8936), Clean Vehicle Credit Amount) (2025): https://www.irs.gov/pub/irs-pdf/i8936.pdf
- Form 8936, Clean Vehicle Credits (2025): https://www.irs.gov/pub/irs-pdf/f8936.pdf
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.