Tesla Model Y

January 25, 2023

Heads-up for who ever buying:

The 7500 tax credit is non refundable.

The tax credit is not refundable, which means you must have federal tax due to take advantage of it. If your tax due is less than the credit amount, you can only claim the credit up to the amount of your tax due. You cannot use excess amounts of the credit on future- or previous-year tax returns

Let's say when you file tax returns next year, if you are getting money back from IRS, then you won't get those 7500. So make sure that you owe to IRS minimum of 7500 by adjusting your w4 with employer.