Clean Vehicle Credit on TurboTax Business 2023

[XEN0]

TurboTax Business Desktop 2023 doesn't seem to have any questions related to Clean Vehicle Credit if an electric car is purchased by the S-Corp? I thought S-Corps need to file the Form 8936 to claim the 7.5K credit, is that correct?

And does the income threshold of 150K also apply to the S-Corp or its shareholders, even if it's a 100% business vehicle?

[AmeliesUncle · Accepted solution]

The last I checked, you are correct that the S-corporation program does not have the required form.  You might need to use different software or go to a tax professional.

The credit is passed to the shareholders via the K-1.  It is on their personal tax return (Form 1040) where the AGI limit is applied to see if they qualify for the credit or not.

[XEN0]

If the credit is passed to the shareholders personal Form 1040 via the K-1, then would the North America Final Assembly Requirements also apply in addition to the AGI Income Limit, even though it's a commercial vehicle purchased by the S-Corp?

[AmeliesUncle]

Now you seem to be asking about the "Qualified Commercial Clean Vehicle Credit" on Form 8936-A, which is slightly different than the Clean Vehicle Credit on Form 8936.

I'm not sure if that is in the 1120-S program or not.