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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A tax credit reduces your tax liability by the amount of the credit. So for example of you make 100k, you are taxed on 100k. But if you have a 7500 credit you are only taxed as if you made 92500.
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