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this post was submitted on 06 Oct 2023
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It’s worth noting that the CNN article doesn’t say what happens if your taxes for the year are lower than the incentive.
I assume you get the full incentive at the dealership, and then are responsible for the difference come tax day.
So if your taxes are… say $4,000 and you buy a new car with the $7,500 rebate. That’s a difference of $3,500 and your taxes become 4K + 3.5K = $7,500 for that year… or so I’m assuming.
I believe with these sorts of things, you're signing it over to the dealership so it goes against THEIR tax burden, not yours.
Currently, if your taxes are under the rebate, your tax incentive is only as good as your taxes are. So if you owe $3k in taxes, you're only getting a $3K tax incentive, regardless of if it's new ($7.5k) or used ($4k).
I'm seeing the government giving us easier access to that $3K… not granting the full 4k or 7.5k. For simplicity's sake, the full rebate is applied at the dealership, but the difference is still due for that year's taxes.