Tax credits is different from the federal tax credit/rebate. Texas charges sales tax on the entire sales price of a vehicle (even on a lease), but some dealers/manufacturers offer tax credits to offset the sales tax.
I paid the Texas sales tax, but we also ave a PHEV rebate program. It will be $2500, but I have to get the app in quickly because they’re running low on credits.
Are those state tax credits an arbitrary amount? Like does the captive or dealer just choose an amount at their discretion or do they have an allotted amount they can spend per car/month? I’ve always wondered that.
Texas sales tax credits are bizarre. Basically if I trade my car in or return my leased vehicle the tax I overpaid is given to the dealership in the form of tax credits. The dealership chain then decides how they want to dole those credits out, whether for sales events, for low sales periods, to move old stock, etc.
If you know about them they are excellent as most dealers will then set your sales tax rate to around 1%. Combine that with BMW Owners Choice and the right PHEV and you have the best deal in the country.