Do I have to owe 7.5k at the end of the year to get the 7.5k rebate? I don’t understand.
In: 0
The federal new electric vehicle rebate is a one-time tax credit. Tax credits offset your taxes due (IRS 1040 line 24). If you didn’t owe $7500 in taxes, you lose the leftover credit.
On the flip side, Tesla’s aren’t eligible for the $7500 rebate because they’ve sold enough. Here is the list of vehicles eligible for rebate. [https://www.fueleconomy.gov/feg/taxevb.shtml](https://www.fueleconomy.gov/feg/taxevb.shtml)
EDIT: Many states have their own additional rebates that may have different rules. The car salesmen you’d talk to will definitely be yapping about it if you have that option. For example Texas has a $2500 flat cash rebate.
EDIT2: New rule making is underway and Tesla will probably be eligible for this rebate again soon.
Latest Answers