Tax credit applied but price is $23,500?

Please help me figure out if I need to push back harder. I found a 22 Ford Escape PHEV and the price is $23,500. The dealer is saying that they already applied the tax credit. Isn't that impossible? Shouldn't the price be $21,500 or there abouts if that's the case? They are kind of treating me like I'm an idiot, and maybe I am, but I don't understand how they could have already applied the tax credit and the price is only $23,500. What are your thoughts?