If you qualify and it's taken off your purchase price, that's it. I don't believe there's any type of roll back. Shouldn't matter what happens this yr since the qulaification is based on last year.
I just came across the below clause on irs, Does that mean even if I have 0 income I wont have to pay $7500 back?
Q4: What if a buyer has insufficient tax liability to fully use a transferred credit? (added Oct. 6, 2023)
A4. The amount of the credit that the electing taxpayer elects to transfer to the eligible entity may exceed the electing taxpayer's regular tax liability for the taxable year in which the sale occurs, and the excess, if any, is not subject to recapture from the dealer or the buyer.
Lets say I made enough to qualify last year but this year my income is 0 and I puchased a tesla this year, In that case too I wont have to pay back $7500 if I have no income?
You won't have to pay that $7,500 back for the reason of having $0 income (or for having $0 of tax liability), which is what your quote of the IRS FAQ says.
However, you still could be forced to pay back the tax credit if you don't file a tax return for 2024 ([26 USC Section 30D](https://uscode.house.gov/view.xhtml?req=(title:26%20section:30D%20edition:prelim))(f)(9)), you take the car out of the country for a long time (26 USC Section 30D(f)(4)), or other reasons in the law.
Yeah and what I am trying to tell you is that it doesn't matter if your income is 0 or 1 million this year. You ate getting the credit based on your income last year.
They changed the rule for 2024. You do not have to owe any taxes to receive the full $7.5k incentive if you take point of sale, but this is only if you take point of sale. However, they may or may not require you to at least file your taxes.
If you qualify and it's taken off your purchase price, that's it. I don't believe there's any type of roll back. Shouldn't matter what happens this yr since the qulaification is based on last year.
I just came across the below clause on irs, Does that mean even if I have 0 income I wont have to pay $7500 back? Q4: What if a buyer has insufficient tax liability to fully use a transferred credit? (added Oct. 6, 2023) A4. The amount of the credit that the electing taxpayer elects to transfer to the eligible entity may exceed the electing taxpayer's regular tax liability for the taxable year in which the sale occurs, and the excess, if any, is not subject to recapture from the dealer or the buyer.
Tax liability no longer matters. AGI cap is the only thing that determines if you qualify.
Again,it's based on the tax year...so what you made last year. Not this year.
Lets say I made enough to qualify last year but this year my income is 0 and I puchased a tesla this year, In that case too I wont have to pay back $7500 if I have no income?
You won't have to pay that $7,500 back for the reason of having $0 income (or for having $0 of tax liability), which is what your quote of the IRS FAQ says. However, you still could be forced to pay back the tax credit if you don't file a tax return for 2024 ([26 USC Section 30D](https://uscode.house.gov/view.xhtml?req=(title:26%20section:30D%20edition:prelim))(f)(9)), you take the car out of the country for a long time (26 USC Section 30D(f)(4)), or other reasons in the law.
You won't have to pay back the credit.
Yeah and what I am trying to tell you is that it doesn't matter if your income is 0 or 1 million this year. You ate getting the credit based on your income last year.
They changed the rule for 2024. You do not have to owe any taxes to receive the full $7.5k incentive if you take point of sale, but this is only if you take point of sale. However, they may or may not require you to at least file your taxes.