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Form 8936 Entry of E-Bike serial number on line originally created for VIN will not pass e-file error check

Forum|Forum|3 years ago
March 28, 2023
2 replies
27 views

Client purchased an electric bike and my tax research and the manufacturer show that it can be utilized on form 8936 as part of the Plug-in Elec. Drive Motor Vehicle Credit; however, electric bikes only have 10 digit serial numbers, not VIN numbers, form needs a 17 digit number, serial number is only 10. Intuit Proseries has click boxes to accept the E-Bike on For 8936 Worksheet; however, the serial number is not accepted in the VIN Line 14 because it only has 10 digits. I will paper print the return if I can't find any other options. This is my first ever post so I am taking a shot in the dark that some else may have this issue as well. Thank you for supporting our CPA and tax preparer communities with a forum to discuss and read tax issues.

ProSeries Professional

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Best answer by qbteachmt

The proposed extension did not pass, but that didn't stop salespeople from stating otherwise regarding a credit.

https://electrek.co/2023/03/21/electric-bike-tax-credit-bill-reintroduced/

Let's also understand ebike vs two-wheeled electric vehicle has specifications:

https://www.irs.gov/businesses/irc-section-30dg-qualified-2-or-3-wheeled-plug-in-electric-drive-motor-vehicles

A qualified 2-wheeled plug-in electric vehicle is a new vehicle with two wheels that:

Is capable of achieving a speed of 45 miles per hour or greater;
is propelled to a significant extent by an electric motor which draws electricity from a battery which:
- (i) has a capacity of not less than 2.5 kilowatt hours, and
- (ii) is capable of being recharged from an external source of electricity; and
has a gross vehicle weight rating of less than 14,000 pounds.

Because there is a Manufacturer listing there, as well.

Manufacturers of the 2-wheeled vehicles listed below have provided appropriate information and have received acknowledgement from the Service of the vehicle’s eligibility for the credit. They have also provided written consent allowing the Service to disclose their vehicle on this web page.

From: https://www.cyclevolta.com/understanding-e-bike-power-range-and-energy/

"One kilowatt is defined to be about 1.34 hp. You can just as readily say a small motorcycle with 10 hp has about 7 kilowatts.

But when it comes to eBikes, a kilowatt, a full 1,000 watts, is often just too big a unit. Instead, eBikes are generally rated in unprefixed watts, with power ranging from 250 to about 900 watts."

sjrcpa

Level 15

Can you get a credit for an ebike in 2022?

Answering my own question - Yes Or No. I don't think it ever got passed into law.

Federal Electric Bike Tax Credit Would Offer up to $1,500 | Kiplinger

The more I know the more I don’t know.

T

TaxGuyBill

Level 15

@sjrcpa wrote:

Can you get a credit for an ebike in 2022?

Answering my own question - Yes Or No. I don't think it ever got passed into law.

Federal Electric Bike Tax Credit Would Offer up to $1,500 | Kiplinger

The Instructions say if it was "acquired" in 2021 but not "placed in service" until 2022, it can qualify. Otherwise, I don't think it qualifies.

https://www.irs.gov/instructions/i8936#en_US_2022_publink1000111668

*IF* it qualifies, I would just disable the Error-Checking when e-filing the return in ProSeries.

P

pabizcpaAuthor

Level 2

Yes, I did verify that the bills did not pass for 2022. That was why it was taking me so long to find the rules. Thank you for the your answer. Now I know that it is No, the E-Bike does not qualify for the 2022 credit. Here is what was listed on the IRS website:

Thank you from a first time poster {CPA with 30 years of experience}. Good luck with your rest of your tax season.

qbteachmtAnswer

Level 15

The proposed extension did not pass, but that didn't stop salespeople from stating otherwise regarding a credit.

https://electrek.co/2023/03/21/electric-bike-tax-credit-bill-reintroduced/

Let's also understand ebike vs two-wheeled electric vehicle has specifications:

https://www.irs.gov/businesses/irc-section-30dg-qualified-2-or-3-wheeled-plug-in-electric-drive-motor-vehicles

A qualified 2-wheeled plug-in electric vehicle is a new vehicle with two wheels that:

Is capable of achieving a speed of 45 miles per hour or greater;
is propelled to a significant extent by an electric motor which draws electricity from a battery which:
- (i) has a capacity of not less than 2.5 kilowatt hours, and
- (ii) is capable of being recharged from an external source of electricity; and
has a gross vehicle weight rating of less than 14,000 pounds.

Because there is a Manufacturer listing there, as well.

Manufacturers of the 2-wheeled vehicles listed below have provided appropriate information and have received acknowledgement from the Service of the vehicle’s eligibility for the credit. They have also provided written consent allowing the Service to disclose their vehicle on this web page.

From: https://www.cyclevolta.com/understanding-e-bike-power-range-and-energy/

"One kilowatt is defined to be about 1.34 hp. You can just as readily say a small motorcycle with 10 hp has about 7 kilowatts.

But when it comes to eBikes, a kilowatt, a full 1,000 watts, is often just too big a unit. Instead, eBikes are generally rated in unprefixed watts, with power ranging from 250 to about 900 watts."

Don't yell at us; we're volunteers

P

pabizcpaAuthor

Level 2

Yes, I did verify that the bills did not pass for 2022. That was why it was taking me so long to find the rules. Thank you for the your answer. Now I know that it is No, the E-Bike does not qualify for the 2022 credit. Here is what was listed on the IRS website:

The credit for qualified 2-wheeled plug-in electric vehicles expired in 2022. If you bought a 2-wheeled vehicle in 2021, but placed it in service during 2022, you may still be able to claim the credit for 2022. If you bought it after 2021, you can't claim

https://www.irs.gov/credits-deductions/credits-for-new-electric-vehicles-purchased-in-2022-or-before?fbclid=IwAR1FZLIMSaUTI4lMne3kTlx3vkMfd-Q4Tb7zMH5EhEWlbXIvLcgv2mlNnng#:~:text=If%20you%20bought%20a%202,8936%20(01%2F2022)

Thank you from a first time poster {CPA with 30 years of experience}. Good luck with your rest of your tax season.

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