I'm a lyft driver and want to buy a plug-in hybrid with 7500 rebate. if I use 50% of my car for Lyft, do I still get the full 7500 rebate?

[TaxGuyBill]

Yes, sort of.

I assume you mean "tax credit", rather than "rebate".

It would actually show up as two credits of $3750 each, but otherwise, yes, you could qualify for the full amount.

[Edited:]  However, just be aware that personal credit is limited to the amount of income tax on your tax return (Line 47 of your 2017 Form 1040).  If you don't have that much income tax on the tax return, the unused part of the credit would be lost.  The business portion of the credit can be carried back to your previous year's tax return.

[maxlausf]

Thanks for your answer.  So if my income tax on Line 47 is for example $6000, does that mean I only get $6,000 tax credit and the rest $1500 is lost?  

[Texas Roger]

Yes you are correct. You would only get $6,000 of credit and the rest would be lost.

[Critter]

And the credit only gets applied to federal income taxes ... it doesn't cover SE or other taxes on the return.

[TaxGuyBill]

After sleeping on it, I realized I gave you some incorrect information ( I should know better than to answer questions that late at night) ...

The unused PERSONAL part of the credit would be lost, but the BUSINESS part of the credit would be carried BACK to last year (so you would need to amend the previous year's tax return).

As I said before, it would show up as two credits of $3750 each.  Now let's say that Line 47 is only $3000.  In that situation, you would be allowed $3000 of your personal credit, and the other $750 of your personal credit would be lost.  Your entire business credit of $3750 would be carried back to last year.