Is the electric vehicle tax credit refundable?

I’m currently shopping for an electric car that I can cash in a federal tax credit on, but what if you don’t have a tax due? Is the tax credit refundable?

Find out if you’re getting ripped off on your car insurance in less than two minutes.
No spam · No long forms · No fees
Find savings (100% Free)
rating white
3.5k Ratings
Answer provided by
Allison Stone
Answered on Jun 23, 2022
While the federal tax credit for buying an electric car could save you thousands, there are several stipulations to keep in mind to see if you qualify.
The tax credit itself is not refundable, meaning you must have federal tax due to take advantage of it. If your tax due is less than the credit amount, you can only claim the credit up to the amount of your tax due.
This doesn’t mean to have to owe taxes when you file your return to qualify, it just means you must have a tax due as calculated from your taxable income reported on your tax return. In order to receive the full $7,500 credit, you would need to earn about $65,000 to owe enough tax.
If you’re shopping around for a new car and want a fast and easy way to find car insurance savings, try Jerry.
Jerry is a free app that helps you compare quotes sourced from 55+ top insurance companies in under a minute. As a licensed broker, Jerry takes care of your insurance needs from start to finish.
Not only that, but Jerry monitors your insurance rate every six months and sends you new quotes when your plan is up for renewal, so you always know you’re getting the best deal.

Here to save on car and home insurance? Great, you do that. We’ll do everything else.

Sign up in under a minute.
No need to fill out forms or shop around. Sign up in 45 seconds to start saving. Jerry does the rest.
Jerry collects and analyzes your current coverage.
Say hello to Jerry, your new insurance agent. We’ll contact your insurance company, review your current plan, then find the coverage that fits your needs and saves you money.
Get the best options before your renewal.
Jerry does all the picky, busy work by comparing prices and coverage from more than 50+ insurance companies. We compare what we find to your current policy and offer you the three best options before every renewal.

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free