8910_SupStat

SUPPORTING STATEMENT

(Form 8910)

1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

The President signed the Energy Policy Act of 2005 on 8/8/05, enacting legislation that allows taxpayers to claim a credit for certain alternative motor vehicles placed in service after 12/31/05.

This legislation is intended to promote the lease or purchase of certain motor vehicles that make use of alternative technology. Qualifying vehicles are identified, and the entity that uses the vehicle can figure the amount of the credit. The credit can be claimed by individual and business taxpayers. For business taxpayers, some or all of the credit may be claimed as a part of the general business credit. In certain circumstances, the amount of credit claimed may be limited if the vehicle is purchased during the phase-out period.

2. USE OF DATA

Form 8910 will provide eligible taxpayers a standardized format to claim this credit.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

There are no plans, at this time, to offer electronic filing.

4. EFFORTS TO IDENTIFY DUPLICATION

We have attempted to eliminate duplication within the agency wherever possible.

5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES

Not applicable.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES

Not applicable.

7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE

INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)

Not applicable.

8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON

AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY

OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS

Periodic meetings are held between IRS personnel and representatives of the American Bar Association, the National Society of Public Accountants, the American Institute of Certified Public Accountants, and other professional groups to discuss tax law and tax forms. During these meetings, there is an opportunity for those attending to make comments regarding Form 8910.

In response to the Federal Register Notice dated June 8, 2009 (74 FR 27239), we received no comments during the comment period regarding Form 8910.

9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO

RESPONDENTS

Not applicable.

10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES

Generally, tax returns and tax return information are confidential as required by 26 USC 6103.

11. JUSTIFICATION OF SENSITIVE QUESTIONS

Not applicable.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION

List the number of responses, time per response, and total burden for each form included in the submission.

The burden estimate is as follows:

Number of Time per Total

Form Responses Response Hours

8910 10,000 11.59 115,900

Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

As suggested by OMB, our Federal Register notice dated

June 8, 2009 (74 FR 27239), requested public comments of estimates of cost burden that are not captured in the estimates of burden hours, i.e., Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. However, we did not receive any response from taxpayers on this subject. As a result, estimates of the cost burdens are not available at this time.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT

After consultation with various functions within the Service, we have determined that the cost of developing, printing, processing, distribution and overhead for the form is $6,750.

15. REASONS FOR CHANGE IN BURDEN

Due to PL 111-5 (the American Recovery and Reinvestment Act), new lines were added to account for the new plug-in credit that was made a part of the IRC sec 30B and lines were created to replace older lines to account for the treatment of the personal use portion of the alternative motor vehicle credit as a personal credit under Subpart A of the Code, allowed against AMT for tax years beginning after 2008.

New lines were also created in response to IRC code section 179 (d)(9) that requires the cost of property eligible for the credit be reduced by any section 179 deduction claimed.

These changes resulted in an increase of 7 lines, increasing the burden from 98,800 hours to 115,900 hours.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION

Not applicable.

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS

INAPPROPRIATE

See attachment.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB FORM 83-I

Not applicable.

Note: The following paragraph applies to all of the collections of information in this submission:

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.