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Tax Credit Bill

I have a question, I've been combing through the site for about 2 hours and I'm sorry if I missed it, but I just want a straight answer from someone who understands the tax code.

This information was given to my by two different Tesla reps. But I take that with a grain of salt and just want to clarify...
It was my understanding that this $7500 tax credit is not a refundable credit, meaning you have to owe $7500 in taxes to get the full amount. So if you have a tax refund of $1000, you get none of the credit. If you owe $1000, you only get to use $1000 of the credit. I also hear you can get the full amount at time of purchase, so if I purchased in 2023, got the $7500 instantly, would that screw me the next year when I file my 2023 taxes (and don't owe anything)?
 
The old EV tax credit had nothing to do with refund. It was about how much taxes you owed. Nothing to do with prepayment which is what your tax withholding on a paycheck is. You don't really pay your taxes until you file which is when taxes due are calculated. If you prepaid and then taxes due were lower because of tax credit you would get a refund.

New tax law is different but doesn't start until 2024. It will be a flat incentive available at the point of sale with no bearing on taxes owed.
 
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