mod edit: I have left this in place due to the fact that the follow up discussion has value, but have edited the title and added this blurb. The OP agrees this is incorrect after the discussion. I have been following EV's and Tesla for several years now. How this information evaded me until today, I don't know, but I can only assume MANY other Model 3 reservation holders do not fully understand how the EV tax credit will work for them come tax time. Until today, I had assumed it was along the lines of a rebate check, or at the very least like the renewable energy ITC, where it rolls over for several years. What I learned today is that the EV tax credit only reduces your TAX LIABILITY to $0, and only for one year. Again, this information has been out there for a long time, but it is not often made clear in most related articles when the credit is being discussed, or usually, never mentioned at all. It is especially misleading on carmakers (Tesla included) sales pages, where they show you a -$7500 as if it were a straight up rebate. So for anyone out there who did not know this, here is how it works: a) Say you owe $10,000 to the Feds in April (again, most people never owe even close to that). If you qualify in time for the full $7500, you would now owe the Feds on $2500. b) Say you only owe $2000 to the Feds, your $7500 credit would reduce your liability to 0$ for that year only, and rest of the credit is gone like a fart in the wind. If you get a rebate every year, you will get nothing back from the EV tax credit. I am predicting I will get my M3 when the credit is at 50%, or $3,850. My usual annual tax liability is less than $1000. So, really, there is no rush for me. I might as well wait for the AWD since I am not going to get much savings anyways. So if I am thinking of this wrong, or have misunderstood somehow, please correct me. I am very interested to hear how many Model 3 reservation holders who have never purchased an EV before, hence they wouldn't have gone through the tax process, knew that this was how it worked vs. it working like a rebate. I am also curious to know what, if anything, people have done to increase their tax liability, such as decreasing your paychecks tax withholding by increasing your W4 withholding number.