8910 Alternative Motor Vehicle Credit

2007 Form 8910, Alternative Motor Vehicle Credit
Purpose: This is the first circulated draft of the 2007 Form 8910, Alternative Motor
Vehicle Credit, for your review and comments. The major changes are listed
below.
TPCC Meeting: None, but one may be arranged if requested.
Prior Version: The 2006 Form 8910 is available at:
http://www.irs.gov/pub/irs-pdf/f8910.pdf
Other Products: Circulations of draft tax forms, instructions, notices, and
publications are posted at:
http://taxforms.web.irs.gov/draft_products.html
Comments: Please email, fax, call, or mail any comments to me and email the
reviewer, William Woolf, Jr. @ William.P.Woolf@irs.gov by June 29, 2007.

Mike Cyrus
Tax Forms and Publications
SE:W:CAR:MP:T:B:C
Email: Michael.R.Cyrus@irs.gov
Ph: 202.927.9545
Fax: 202.622.3262

2007 Form 8910 Major Changes
On the Form
1] The Form 3800 line reference on line 10 is changed from to "1v" to "1s"
because the lines on the 2007 Form 3800 are renamed.
2] Two changes regarding lines 14a and 14b:
• Lines 14a and 14b (representing the foreign tax credit and the personal tax
credits from Forms 1040 (or 1040NR)) are switched in place (re-ordered)
because IRC 26(a)(2) does not (yet) provide for the old ordering of the
credits/lines. If/when the Congress passes legislation to again offset the AMT,
Forms 1040 and 1040NR will be revised again and we will switch these line
numbers back to (or close to) their 2006 values.
• Line 14a (old line 14b), is changed to reflect the new line references on the
2007 Forms 1040 and 1040NR due to IRC 26(a)(1).
3] All references to 2006 are changed to 2007.
In the Instructions
1] The What’s New area is removed. The paragraph which was therein is now
moved under Purpose of Form as the second paragraph.
2] In the 2nd column, page 2, under the heading Exception, information on
heavy-duty hybrid vehicles is added. Essentially, the 8,500 pound classification is
added for both cars and heavy-duty vehicles, per Notice 2007-46. We made a related
change at the bottom of column 1.
3] Under Credit Phaseout, we added "(reduction)" at the suggestion of a TAP
Ad Hoc Committee review.
4] On page 3, the first Caution is deleted since guidance on all currently available
vehicles has been issued.
5] On page 3 the Model Year 2005 information is deleted and the Model Year
2008 information is added. The 2006 Honda Civic GX and Saturn Aura Hybrid
models are added to the lists of eligible cars.
6] In the Line 6 instructions, the examples of likely personal use vehicles are
removed because they were misleading.
7] Line 9 instructions are added at the suggestion of a TAP Ad Hoc Committee review.
8] We expect the American Honda Motor Company, Inc. to hit the phaseout level
this year. We will revise the instructions once an announcement is made.
9]The year references are updated, where necessary.

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Date

Form

I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8910, PAGE 1 of 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

8910

Action

Date

O.K. to print
Revised proofs
requested

OMB No. 1545-1998

Alternative Motor Vehicle Credit
©

2007

Attach to your tax return.

Attachment
Sequence No.

Department of the Treasury
Internal Revenue Service

Name(s) shown on return

Part I

Tentative Credit

Year, make, and model of vehicle
Enter date vehicle was placed in service (MM/DD/YYYY)
Maximum credit allowable (see instructions)
Phaseout percentage (see instructions)
Tentative credit. Multiply line 3 by line 4

Part II
6
7
8
9
10

1
2
3
4
5

(a)

/

(b)

/

/

(c)

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/

%

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%

%

%

%

Credit for Business/Investment Use Part of Vehicle

6
%
Business/investment use percentage (see instructions)
7
Multiply line 5 by line 6
Add columns (a) through (c) on line 7
Alternative motor vehicle credit from partnerships and S corporations
Business/investment use part of credit. Add lines 8 and 9. Partnerships and S corporations, report
this amount on Schedule K; all others, report this amount on Form 3800, line 1s

Part III

152

Identifying number

Use a separate column for each vehicle. If you need more columns, use
additional Forms 8910 and include the totals on lines 8 and 12.

1
2
3
4
5

Signature

8
9
10

Credit for Personal Use Part of Vehicle

11
11 Subtract line 7 from line 5
12 Add columns (a) through (c) on line 11
13 Regular tax before credits:
● Individuals. Enter the amount from Form 1040, line 44 (or Form 1040NR,
line 41)
● Other filers. Enter the regular tax before credits from your return
14 Credits that reduce regular tax before the alternative motor vehicle credit:
a Credits from Form 1040, lines 47 through 50 and 52 through 54 (or Form
14a
1040NR, lines 44, 45, and 47 through 49)
14b
b Foreign tax credit
14c
c Qualified electric vehicle credit (Form 8834, line 20)
d Add lines 14a through 14c
15 Net regular tax. Subtract line 14d from line 13. If zero or less, stop here; do not file this form unless
you are claiming a credit on line 10
16 Tentative minimum tax (see instructions):
● Individuals. Enter the amount from Form 6251, line 33
● Other filers. Enter the tentative minimum tax from your alternative minimum tax form or schedule
17 Subtract line 16 from line 15. If zero or less, stop here; do not file this form unless you are claiming
a credit on line 10
18 Personal use part of credit. Enter the smaller of line 12 or 17 here and on Form 1040, line 55; Form
1040NR, line 50; or the appropriate line of your return. If line 17 is smaller than line 12, see instructions
For Paperwork Reduction Act Notice, see instructions.

Cat. No. 37720F

12

13

14d
15

%

16

17
18
Form

8910

(2007)

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8910, PAGE 2 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
1
FLAT SIZE: 216 mm (8 ⁄ 2 ") x 279 mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8910 (2007)

General Instructions

Page

If, however, the Internal Revenue Service publishes an
announcement that the certification for any specific
make, model, and model year vehicle has been
withdrawn, you cannot rely on the certification for such a
vehicle purchased after the date of publication of the
withdrawal announcement.
If you purchased a vehicle and its certification was
withdrawn on or after the date of purchase, you can rely
on such certification even if you had not placed the
vehicle in service or claimed the credit by the date the
withdrawal announcement was published by the IRS.
The IRS will not attempt to collect any understatement
of tax liability attributable to reliance on the certification
as long as you purchased the vehicle on or before the
date the IRS published the withdrawal announcement.
In addition to certification, the following requirements
must be met to qualify for the credit:
● You placed the vehicle in service after 2005;
● The original use of the vehicle began with you;
● You acquired the vehicle for your use or to lease to
others, and not for resale; and
● You use the vehicle primarily in the United States.
Exception. If you are the seller of a new vehicle to a
tax-exempt organization, governmental unit, or a foreign
person or entity, and the use of that vehicle is described
in section 50(b)(3) or (4), you can claim the credit, but
only if you clearly disclose in writing to the purchaser the
amount of the tentative credit allowable for the vehicle
(from line 5 of Form 8910).
For details, see section 30B, Notice 2006-9 (qualified
hybrid vehicles weighing 8,500 pounds or less and
advanced lean burn technology vehicles), Notice
2007-46 (qualified hybrid vehicles weighing more than
8,500 pounds), and Notice 2006-54 (qualified alternative
fuel vehicles). You can find Notice 2006-9 on page 413
of Internal Revenue Bulletin (IRB) 2006-6 at
www.irs.gov/pub/irs-irbs/irb06-06.pdf. You can find
Notice 2007-46 on page 1342 of IRB 2007-23 at
www.irs.gov/pub/irs-irbs/irb07-23.pdf. You can find
Notice 2006-54 on page 1180 of IRB 2006-26 at
www.irs.gov/pub/irs-irbs/irb06-26.pdf.

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Section references are to the Internal Revenue Code.

Purpose of Form

2

Use Form 8910 to figure your credit for alternative motor
vehicles you placed in service during your tax year. The
credit attributable to depreciable property (vehicles used
for business or investment purposes) is treated as a
general business credit. Any credit not attributable to
depreciable property is treated as a personal credit.

Taxpayers that are not partnerships or S corporations,
and whose only source of this credit is from those
pass-through entities, are not required to complete or
file this form. Instead, they can report this credit directly
on line 1s of Form 3800.
If your vehicle was used only for personal
purposes during the year, and you owe
alternative minimum tax (for example, Form
Line
4 1040, line 45, is more than zero), do not
CAUTION
complete Form 8910 because your allowable credit will
be zero.

Alternative Motor Vehicle
An alternative motor vehicle is a new vehicle that
qualifies as one of the following four types of vehicles.
● Advanced lean burn technology vehicle. This is a
vehicle with an internal combustion engine that
incorporates direct injection, is designed to operate
primarily using more air than is necessary for complete
combustion of the fuel, and that meets certain
additional requirements.
● Qualified hybrid vehicle. This is a vehicle that draws
propulsion energy from onboard sources of stored
energy that are both an internal combustion or heat
engine using consumable fuel and a rechargeable
energy storage system and that meets certain
additional requirements.
● Qualified alternative fuel vehicle. This is a vehicle
fueled by compressed natural gas, liquefied natural gas,
liquefied petroleum gas, hydrogen, any liquid that is at
least 85 percent methanol, or a mixture of one of these
fuels and a petroleum-based fuel, and that meets
certain additional requirements.
● Qualified fuel cell vehicle. This is a vehicle propelled
by power derived from one or more cells which convert
chemical energy directly into electricity by combining
oxygen with hydrogen fuel and that meets certain
additional requirements.
Generally, for a qualified alternative fuel motor vehicle,
an advanced lean burn technology vehicle, or for a
passenger car or truck (light or heavy duty) that is a
qualified hybrid vehicle, you can rely on the
manufacturer’s (or, in the case of a foreign
manufacturer, its domestic distributor’s) certification
that a specific make, model, and model year vehicle
qualifies for the credit and the maximum amount of the
credit for which it qualifies.

Credit Phaseout
The credit for qualified hybrid and advanced lean burn
technology vehicles is subject to a phaseout
(reduction) once the vehicle manufacturer (or, for a
foreign manufacturer, its U.S. distributor) sells 60,000
of these vehicles for use in the United States after
2005. The phaseout begins in the second calendar
quarter after the quarter in which the 60,000th vehicle
was sold. Then the phaseout allows 50% of the full
credit for 2 quarters, 25% of the full credit for 2
additional quarters, and no credit thereafter.

Basis Reduction
Unless you elect not to claim the credit, you may have to
reduce the basis of each vehicle by the sum of the
amounts entered on lines 7 and 11 for that vehicle.

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8910, PAGE 3 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
1
FLAT SIZE: 216 mm (8 ⁄ 2 ") x 279 mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8910 (2007)

Recapture of Credit

Page

Line 3

Lexus RX 400h 2WD and 4WD—$2,200
Mercury Mariner 4WD Hybrid—$1,950
Nissan Altima Hybrid—$2,350
Saturn Aura Hybrid—$1,300
Saturn Vue Green Line—$650
Toyota Camry Hybrid—$2,600
Toyota Prius—$3,150
Toyota Highlander Hybrid 2WD and 4WD—$2,600

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If the vehicle no longer qualifies for the credit, you must
recapture part or all of the credit. For details, see section
30B(h)(8).

Specific Instructions

●
●
●
●
●
●
●
●

3

Enter the maximum credit allowable (before reduction
under the phaseout rules) for the year, make, and model
of vehicle you entered on line 1. You can generally rely
on the manufacturer’s (or domestic distributor’s)
certification of the maximum credit allowable as
explained above.

Maximum credit allowable. Maximum credit allowable
amounts acknowledged by the IRS for model years
2006 through 2008 before this form went to print in
December 2007 are listed below.
This list contains information from IRS news
releases available at the time this form went
to print. To check for information on model
Line
4 year 2005 vehicles or for later IRS news
CAUTION
releases that may update this list, visit www.irs.gov and
search for “hybrid.”

Model Year 2006
● Chevrolet Silverado 2WD Hybrid Pickup Truck—$250
● Chevrolet Silverado 4WD Hybrid Pickup Truck—$650
● Ford Escape Hybrid (Front) 2WD—$2,600
● Ford Escape Hybrid 4WD—$1,950
● GMC Sierra 2WD Hybrid Pickup Truck—$250
● GMC Sierra 4WD Hybrid Pickup Truck—$650
● Honda Accord Hybrid AT and Navi AT without
updated calibration—$650
● Honda Accord Hybrid AT and Navi AT with updated
calibration—$1,300
● Honda Civic GX—$4,000
● Honda Civic Hybrid CVT—$2,100
● Honda Insight CVT—$1,450
● Lexus RX400h 2WD and 4WD—$2,200
● Mercury Mariner Hybrid 4WD—$1,950
● Toyota Highlander 2WD and 4WD Hybrid—$2,600
● Toyota Prius—$3,150
Model Year 2007
● Chevrolet Silverado 2WD Hybrid Pickup Truck—$250
● Chevrolet Silverado 4WD Hybrid Pickup Truck—$650
● Ford Escape Hybrid 2WD—$2,600
● Ford Escape Hybrid 4WD—$1,950
● GMC Sierra 2WD Hybrid Pickup Truck—$250
● GMC Sierra 4WD Hybrid Pickup Truck—$650
● Honda Accord Hybrid AT and Navi AT—$1,300
● Honda Civic GX—$4,000
● Honda Civic Hybrid CVT—$2,100
● Lexus GS 450h—$1,550

Model Year 2008
● Ford Escape 2WD Hybrid—$3,000
● Ford Escape 4WD Hybrid—$2,200
● Mercury Mariner 2WD Hybrid—$3,000
● Mercury Mariner 4WD Hybrid—$2,200

Line 4

Enter 100% unless the vehicle is a qualified hybrid or
advanced lean burn technology vehicle manufactured
by the Toyota Motor Corporation. Enter the following
percentage if the vehicle is a Toyota or Lexus qualified
hybrid or advanced lean burn technology vehicle.
● 100% if you purchased it before October 1, 2006.
● 50% if you purchased it after September 30, 2006,
but before April 1, 2007.
● 25% if you purchased it after March 31, 2007, but
before October 1, 2007.
● 0% if you purchased it after September 30, 2007.
At the time these instructions went to print,
only Toyota Motor Corporation sold vehicles
subject to the credit phaseout. However, if
Line
4 you are filing a 2007 Form 8910 for a fiscal
CAUTION
year that ends after June 30, 2008, and you purchased
a qualified hybrid or advanced lean burn technology
vehicle from another manufacturer after that date, you
may be subject to a 50% phaseout percentage. You
can visit www.irs.gov and search for “hybrid” to get the
latest phaseout information.

Line 6
Enter the percentage of business/investment use.
Enter 100% if the nature of the vehicle does not lend
itself to personal use or you are claiming the credit as
the seller of the vehicle.
If the nature of the vehicle lends itself to personal use,
determine this percentage by dividing the number of
miles the vehicle is driven during the year for trade or
business purposes or for the production of income (not
to include any commuting mileage) by the total number
of miles the vehicle is driven for all purposes. Treat
vehicles used by your employees as being used 100%
for business/investment purposes if the value of
personal use is included in the employees’ gross
income, or the employees reimburse you for the
personal use. If you report the amount of personal use of
the vehicle in your employee’s gross income and
withhold the appropriate taxes, enter 100% for the
percentage of business/investment use.

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8910, PAGE 4 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
1
FLAT SIZE: 216 mm (8 ⁄ 2 ") x 279 mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8910 (2007)

Page

If during the tax year you convert property used solely
for personal purposes to business/investment use (or
vice versa), figure the percentage of business/
investment use only for the number of months you use
the property in your business or for the production of
income. Multiply that percentage by the number of
months you use the property in your business or for the
production of income and divide the result by 12. For
example, if you converted a vehicle to 50% business
use for the last 6 months of the year, you would enter
25% on line 6 (50% multiplied by 6 divided by 12).
For more information, see Pub. 463, Travel,
Entertainment, Gift, and Car Expenses.

Line 9

● Schedule K-1 (Form 1065), box 15 (code P)
● Schedule K-1 (Form 1120S), box 13 (code P)

Line 16

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.
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.
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.
Recordkeeping
9 hr., 19 min.
Learning about the law
or the form
12 min.
Preparing and sending
the form to the IRS
21 min.
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.

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Enter total alternative motor vehicle credits from:

Although you may not owe alternative minimum tax
(AMT), you must still figure the tentative minimum tax
(TMT) to figure your allowable credit. Complete and
attach the applicable AMT form or schedule and enter
the TMT on line 16.

Line 18
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.

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