This just in - the President is pushing hard for a $10,000 point of purchase credit for EV buyers! With shipments of the Model S coming in about 4 months, the timing couldn't be better. Point of purchase Credit is huge! Here's the article:http://www.nytimes.com/2012/03/08/us/obama-pushes-added-credits-for-hybr...
Yeah, that would be great but don't get your hopes up. This is an election year remember. Not a whole lot will get done in Congress. But I hope I'm wrong!
At point of sale would be nice.
This 7500 is a credit so it reduces your tax liability. This means that if you owe 500 you would get a refund of 7000. Once my car arrives I am going to reduce my federal with holdings so I can get the credit at time of delivery.
Hi Chad. So what you are saying is you are planning on ending the year you buy your car underwithheld. You keep the money during the year, but if you buy the car, it works out on tax day... makes sense.
More or less same here.
@Chad: that's correct (and the right way to manage your taxes) provided that you have a paid at least $7,500 in federal income taxes (including what you paid through withholding and quarterly estimates) during the year.
Thanks for furnishing the link. Since the price of the car is over $45K, it looks like the tax credit would max out at $7,500. Not the $10K mentioned by the article.
But, a point of purchase credit of $7,500 would still be very beneficial, and would presumably reduce the sales tax paid on the purchase transaction by several hundred dollars.