EV POS Credit combined with other credits

[Noob1]

How will the 2024 Point-of-Sale (POS) $7500 EV Credit impact other refundable and non-refundable credits? For example, if you only have $7000 in tax liability and are eligible for a $2000 Energy Home Efficiency Credit but also already took a $7500 POS EV credit in the same year. Can you still take the $2000 credit or are you maxed out?

[AmyC]

Both of the credits you mention are non-refundable so you would only take the amount up to your tax liability.

Some credits are non-refundable and reduce your tax liability while others are refundable. Once you hit zero with the non-refundable credits, those are maxed out regardless of how much is left. 

[Noob1]

Appreciate the response. Is that response applicable to the new Point of Sale credit for the 2024 tax year? My understanding was you could keep the entire $7,500 even if you didn’t have that much liability, in effect making it act like a refundable credit. 

[Noob1]

Appreciate the response. Is that response applicable to the new Point of Sale credit for the 2024 tax year? My understanding was you could keep the entire $7,500 even if you didn’t have that much liability, in effect making it act like a refundable credit. 

[AmyC]

If you are transferring the credit to the dealership at the point of sale, they will take the credit and offer you a lower price or cash back. The credit is up to $7,500 depending on several factors. The MSRP, the vehicle, your modified adjusted gross income, new or used vehicle. There may be state rebates and as always, rules can change.