I owe an apology to
@ks1972 as it appears, despite reading it numerous times, I failed to comprehend that people earning less than $67,850 will still enjoy a credit against 100% of their federal tax liability.
I could not see past my own misconception that everyone pays at least 33% in taxes, erroneously believing that someone earning $25k is still paying over $7,500 in taxes.
I also now see that a fully refundable tax credit would create a “subsidy” to people who earn less than $67,850, and the more interesting point above by
@3sr+buyer, if I correctly understood the point, that it arguably makes no difference from a broader perspective since it is a subsidy regardless of tax bracket (just semantics).
I was just frustrated that I cannot help my daughter capture the full $7,500 credit and did not understand that she will not pay a penny in federal taxes regardless, if she purchases an EV.
And to everyone’s point that it’s probably a bad idea for anyone earning less than $67k to purchase a M3 because payments will create a tremendous strain on their finances, there is also the issue of insuring the M3 for a younger driver.
And finally, there is the ethical consideration of the tax implication of helping/subsidizing the purchase for an adult child to get into a M3 at a price point where they can afford the monthly payment and enjoy the tax credit even if the credit is less than full.
I may need to consult my CPA.
One point is certain; my frustration was misdirected and
@ks1972 was correct.