I just checked on the tax credit the feds are pushing if you buy an electric car. I'm thinking
about buying one, but I'm disappointed with the way the tax credit works. Check this out:
How much is the federal tax credit?
First and foremost, it’s important to understand three little words the government slips in front of the $7,500 credit – “may” and “up to.” As in, you may qualify for up to $7,500 in federal tax credit for your electric vehicle. At first glance, this credit may sound like a simple flat rate, but that is unfortunately not the case.
While the credit amount is based on battery size, the amount of that credit you can receive is based entirely on your federal income tax and is implemented as such.
For example, if you owned a Nissan LEAF and owed say, $3,500 in income tax this year, then that is the federal tax credit you would receive. If you owed $10,000 in federal income tax, then you would qualify for the full $7,500 credit.
It’s important to note that any unused portion of the $7,500 is not available as a refund, nor as a credit for next year’s taxes. Bummer.
What do you think? I'm retired & haven't had to file a tax return for quite a few years, but if I don't owe federal taxes, I'om screwed on the electric car credit!
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