I see that there are federal and state tax credit offers to buy an electric vehicle, but this is not money that will just be given to you, correct? You would have to owe $7500 in taxes to benefit from a $7500 tax credit? Or am I wrong?
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EDIT: fully refundable credit was part of Build Back Better plan that hasn’t yet passed
The laws actually changed in past couple years, where you can now get money back if you owe less than $7500 in total income tax. However, given the current prices of electric cars, most people who buy them owe more than $7500 in taxes (that’s a single person who makes $54,000 in taxable income). It only applies to new vehicles and almost all electric cars start at over $40k now, so they are mostly bought by higher income people.
And remember, your total taxes owed include all the money you had withheld from paychecks all year, not just what you may owe come tax time.
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