Updated October 18, 2026. Quick answer: Part II is the business or investment use part of the new clean vehicle credit, and Part V is the qualified commercial clean vehicle credit. On line 6 and line 19 you enter the totals figured on Schedule A. Lines 7 and 20 pick up credits passed through from a partnership or S corporation.
Part II: lines 6 to 8
Part II is headed “Credit for Business/Investment Use Part of New Clean Vehicles”. Line 6 reads “Enter the total credit amount figured in Part II of Schedule(s) A (Form 8936)” and line 7 reads “New clean vehicle credit from partnerships and S corporations (see instructions)”. Line 8 adds lines 6 and 7: “Partnerships and S corporations, stop here and report this amount on Schedule K.” “All others, report this amount on Form 3800, Part III, line 1y”.
Line 7: credits passed through
The instructions say “Enter the total new clean vehicle credits from:” Schedule K-1 (Form 1065), “box 15 (code AY)”, and Schedule K-1 (Form 1120-S), “box 13 (code AY)”. They continue: “Partnerships and S corporations report the above credits on line 7.” “All others not using line 6 to figure a separate credit can report the above credits directly on Form 3800, Part III, line 1y.”
Why the business part matters
The instructions explain the treatment: “The part of the credit attributable to business/investment use of a new clean vehicle is treated as a general business credit.” A tip in the Part III instructions adds “A taxpayer claiming a credit amount for the personal use part of a new clean vehicle must fill out Part II, even if they are not claiming a credit amount for business/investment use.” The personal part is on the Part III, lines 9 to 13 page.
Part V: lines 19 to 21
Part V is headed “Credit for Qualified Commercial Clean Vehicles”. The instructions say “Use Part V of Form 8936 to claim the credit for qualified commercial clean vehicles.” “Use Parts I and V of Schedule A (Form 8936) to figure the credit amount for each qualified commercial clean vehicle you placed in service during your tax year.”
Line 19 reads “Enter the total credit amount figured in Part V of Schedule(s) A (Form 8936)”, line 20 reads “Qualified commercial clean vehicle credit from partnerships and S corporations (see instructions)”, and line 21 says “Add lines 19 and 20.” “All others, report this amount on Form 3800, Part III, line 1aa”. For line 20 the instructions point to “box 15 (code AZ)” of Schedule K-1 (Form 1065) and “box 13 (code AZ)” of Schedule K-1 (Form 1120-S), and say “Partnerships and S corporations report the above credits on line 20.”
Who must file for a pass-through credit
For both credits the instructions say “Partnerships and S corporations must file this form to claim the credit.” “All other taxpayers are not required to complete or file this form if their only source for this credit is a partnership or S corporation.” On the acquisition cutoff, the commercial credit instructions state “You cannot claim the qualified commercial clean vehicle credit for any vehicle acquired after September 30, 2025.”
Not the same vehicle twice
The instructions say “A vehicle that anyone has claimed for the new clean vehicle credit in Part II of Form 8936 cannot be used to claim the qualified commercial clean vehicle credit in Part V of Form 8936.” “If your vehicle qualifies for both credits, you may choose which of those credits to claim.”
Where it goes next
Neither Part carries a figure to Schedule 3. Line 8 and line 21 go to Schedule K or Form 3800, as quoted above. The personal use and previously owned credits are on the Part III, lines 9 to 13 and Part IV, lines 14 to 18 pages, and the whole form is walked through 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
- Treating the line 7 amount as extra income to enter on line 6. The instructions say “Partnerships and S corporations report the above credits on line 7.”
- Using one vehicle for both credits. The instructions say “cannot be used to claim the qualified commercial clean vehicle credit in Part V of Form 8936.”
- Claiming the commercial credit for a late vehicle. The instructions say “You cannot claim the qualified commercial clean vehicle credit for any vehicle acquired after September 30, 2025.”
Related: Form 8936, Schedule 3 lines 6f to 6k, Schedule C, and Form 4562.
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.