|In New Jersey, buyers of Tesla Motors' Model S can save about $5,000 or more, because they won't have to pay the 7% sales tax on their zero-emission vehicle.|
By VICTOR E. SASSON
If you've bought a hybrid or fully electric car or are still kicking the tires, you've probably heard how a federal tax credit of up to $7,500 will "reduce" the price of the car.
But buyers of many popular hybrids and EVs no longer qualify for the tax credit, which ends for each carmaker when they sell 200,000 cars.
The full $7,500 tax credit is still available for Tesla's Model S, a four-door luxury hatchback with an MSRP of about $70,000 for the base model.
Still, you can't claim the credit until you are filing your federal tax return, and then, you'll only be able to use it to reduce the federal taxes you owe.
If you don't owe the government $7,500 in taxes, you can't use the full credit.