However, you may have a taxable gain. The credit reduces your cost basis. For example, of the car cost $50,000 then your cost basis after the credit is $42,500. If you sold it as a used car for $45,000, for example, you have a taxable capital gain of $2,500 (selling price more than cost basis).
The cost basis adjustment may also have an effect on depreciation if you use the car for business.
