How does the tax credit work?

[cplaw]

If hypothetically I owe 100k in income taxes and 100k was deducted from my paycheck for income taxes, does that mean I would get a tax refund check of $7500?

 

[sdorn]

If hypothetically I owe 100k in income taxes and 100k was deducted from my paycheck for income taxes, does that mean I would get a tax refund check of $7500?

Basically that is right. It is a $7500 credit toward your total tax liability, so if you had the exact amount of your tax liability withheld from your paycheck (meaning that excluding the EV credit you would neither owe additional taxes or be due a refund) you would get a $7500 refund with the EV tax credit assuming your total tax liability was at least $7500. If your total tax liability was less than $7500 your credit would be limited to the amount of your total tax liability.