You can get a $7,500 tax credit to buy an electric car, but it's really complicated

The big climate and health care bill signed into law by President Biden has what at first sight looks like a big incentive for those shopping for a car: a revamped $7,500 tax credit if you buy a new electric vehicle, or $4,000 if you get a used one.

Although tax credits for electric cars have been offered before, the new bill revamps those incentives. But there are so many caveats — on everything from the buyers' income level to which models can qualify — that many electric cars may actually not be eligible for the tax credit.

Nonetheless, the caveats are there for two key reasons: to eventually make electric cars more affordable for more Americans and to bring more of the production across the supply chain to the U.S.