The EV credit is non refundable. This means that when you enter in your income and get down to Taxable Income, you will only receive a credit up to the amount of tax that is calculated off of the Taxable income.
So for example, pull up your 2022 tax return. Look at line 15. That is your taxable income. Now look at Line 16. That is tax on the income. If your tax is $0 then you would not be able to recevied a NON REFUNDABLE credit.
If you tax is $1000 then you most likely would only receive $1000 of the $7500.
If you look at the IRS.gov website it will give you all the information about this credit. One part I see is this:
"The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years."
I suggest that you look at this link: https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after
It spells out all of the limits.
If you still purchase an EV, I hope you enjoy it! I love mine!! We traveled out east and had a blast!!
KatherineS63
