Electric Vehicle Tax Credit Explained
If your income as a couple is $300,000 or more, you are too high to qualify for the $7,500 federal EV tax credit. However, you can transfer the credit to the dealer, who will apply it as a discount on your purchase.
There’s a catch for high-income buyers—if your income exceeds the limit, you must repay the $7,500 when you file your taxes.
For lower-income buyers, the system works differently. Since dealers do not verify income, you can still receive the full $7,500 credit as a discount at the point of sale, and you won’t have to pay it back when filing taxes. This change makes EVs more accessible to those with lower tax liabilities—if they can still afford one.
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