No, 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'

No, 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.