The credit will come off of the Line 16 Tax. If you tax is $30,000 then your tax credit could be $7500 making tax now $22500. The only question I have is what is your income?
This is something from the IRS.GOV site:
The credit is available to individuals and their businesses.
To qualify, you must:
- Buy it for your own use, not for resale
- Use it primarily in the U.S.
In addition, your modified adjusted gross income (AGI) may not exceed:
- $300,000 for married couples filing jointly
- $225,000 for heads of households
- $150,000 for all other filers
You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.
If you income is under the Modified adjusted gross income amounts, then the credit will come off your taxes and you will lower your taxes. You will never get the $7500 as a separate check...it is non refundable, that is what that means....hope that is clear.
Also remember that MSRP must be $55000 or under for car and $80,000 under for Trucks...see link for specifics. https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after
I love talking about this because I just bought a Tesla and we have a Ford Lightening on order....our MSRP was $83000 so we are working on removing floor mats, charger and Tonneau cover!! Got to get the MSRP under $80000.
KatherineS63
