The EV credit is based on the taxes on your taxable income. You can be eligible for the EV credit if your Modified Adjusted Gross Income is $300,000 or less when filing jointly.
If you have a tax liability (Line 22 of the Form 1040) of $7,500 or more then the EV credit on a new vehicle will reduce your tax liability by $7,500 (depending on vehicle make and model). If your tax liability is less than $7,500 the EV credit can only reduce your liability to 0 and any remaining credit is lost.
