I cannot specifically advise how this tax credit will affect your refund without actually seeing your return and all the supporting tax forms. There are many other factors that affect the size of your refund other than your withholding and this credit. However, I've included some information about this credit below to shed some light on how it is calculated:
Electric Vehicle Credit—Tesla
IRC section 30D provides for a credit for certain new qualified plug-in electric drive motor vehicles. The base amount of the credit is $2,500. The credit is increased by $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours, limited to $5,000. Thus, the maximum credit for the purchase of a new electric powered vehicle is $7,500.
The credit begins to phase out in the second calendar quarter after the calendar quarter in which at least 200,000 of a manufacturer’s vehicles that qualify for the credit have been sold. Taxpayers purchasing the manufacturer’s vehicles during the first two calendar quarters of the phase-out period may claim 50% of the credit, and 25% of the credit during the third and fourth calendar quarter. After the last day of the fourth calendar quarter of the phase-out period, the credit is zero. The IRS issues a Notice when a particular make and model of an electric vehicle reaches 200,000 in total sales and thus begins to be subject to the phase-out period.
The IRS has announced that Tesla, Inc. has cumulative sales of qualified electric vehicles that have reached the 200,000 limit during the calendar quarter ending September 30, 2018. Accordingly, Tesla electric vehicles sold after January 1, 2019, are subject to the credit phase-out.
Electric Vehicle Credit—GM
IRC section 30D provides for a credit for certain new qualified plug-in electric drive motor vehicles. The vehicle must be a new vehicle that is purchased for use or lease in the United States. The base amount of the credit is $2,500. The credit is increased by $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours, limited to $5,000. Thus, the maximum credit for the purchase or lease of a new electric powered vehicle is $7,500.
The credit begins to phase out in the second calendar quarter after the calendar quarter in which at least 200,000 of a manufacturer’s vehicles that qualify for the credit have been sold. Taxpayers purchasing the manufacturer’s vehicles during the first two calendar quarters of the phase-out period may claim 50% of the credit, and 25% of the credit during the third and fourth calendar quarter. After the last day of the fourth calendar quarter of the phase-out period, the credit is zero. The IRS issues a Notice when a particular make and model of an electric vehicle reaches 200,000 in total sales and thus begins to be subject to the phase-out period.
The IRS has announced that General Motors, LLC, (GM) has cumulative sales of qualified electric vehicles that have reached the 200,000 limit during the calendar quarter ending December 31, 2018. Accordingly, GM electric vehicles sold after April 1, 2019, are subject to the credit phase-out.
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