There is no minimum length of ownership to take the $7500 tax credit. You simply have to be the very FIRST person to have the vehicle titled in your name. You could buy the vehicle new and sell it days later and be perfectly OK to take the tax credit.It's my understanding the credit can be claimed twice in the same year. As long as one's tax liability is large enough. Just don't know if there's a minimum length of ownership in order to claim the credit. I've only owned the car for two weeks.
From my novice understanding of California lemon law you're correct that it wouldn't yet be classified as a lemon. Though if their estimate on the time to repair is correct is appears that it's headed that way. From what I read if it's in the shop for over a month during the initial warranty period that classifies it as a lemon.
I suspect the GM at the dealership knows this is where it's heading and is why he offered a refund. He even suggested it might be worth calling Chrysler and telling them this is headed for a lemon buy back to see if they might be able to expedite a replacement vehicle or otherwise help.
The car does have other issues as mentioned in my original post. The dealership tells me replacing this module would fix the most critical of the issues. They have yet to investigate the other issues. They said they wanted to get this one out of the way first.
Also, only the very FIRST titled owner can ever take the tax credit, even if he/she chooses not to. 2nd and further owners are never entitled to the tax credit.
Also, you can take as many tax credits as you can use (at $7500 a shot) provided you have the tax liability. If I bought a RAV4 Prime and a Pacifica Hybrid this year, I could take the $7500 credit on both. If I bought (2) Pacifica Hybrids and (1) RAV 4 Prime, I could also take the tax credit for all 3 this year, provided I have $22,500 in tax liability.
The silver lining here is you just might make out here with (2) tax credits, if they buy back your Pacifica Hybrid and then you also buy a new replacement this year. And don't feel bad about taking the tax credit on the one they buy back, since you are the only one who could ever take this credit anyway.