2 ms·
Doesn't a tax credit just mean you don't have to pay tax on that amount? If you're at, say, a ~20% tax bracket, then it discounts the price by $7,500 * .20, or
by thegrim33 3y ago
Doesn't a tax credit just mean you don't have to pay tax on that amount? If you're at, say, a ~20% tax bracket, then it discounts the price by $7,500 * .20, or $1,500 total, bringing the price for a Chevy Bolt to $25,000. Of course there's then taxes and nonsense fees added on top, and the figure you quoted is the base model with no options, so realistically, even after the tax credit, you're looking at above $30,000 for it.
- Rebelgecko 3y agoNo, that's how tax deductions work. With a credit you just get the amount (there's still some nuances based off tax liability, but the updated law for those is going into effect soon)
- thrill 3y agoNo, the $7500 means if you would have owed that much in federal taxes then that much is taken off the amount you would have owed.
- floxy 3y agoNo, it is a straight tax rebate. If you paid over $7,500 in US Federal taxes, then you get to deduct $7,500 off the taxes owed (not your income). But you don't get to carry forward any if say you only paid $6,000 in taxes (but your tax bill for that year would be $0). Also, my state currently has a much reduced sales tax rate for electric vehicles. Source: I did this when I bought an EV.