KonSre
Member
That's correct! In general The expectation is - most of tesla purchasers would earn at least 60-70K per year to utilize the tax liability unless it is gift to someone. Also not more than 150k for single and 300k for joint filers.The only case where you can't get the 7.5K tax credit (or whatever value it is) is if your income tax liability is lower than the credit.
So e.g. your tax liability is $5K, you'll end up paying no tax at all, however you lose out on the remaining $2.5K. That's what 'nonrefundable' means.