Tesla Model 3 Qualifies for Maximum $7,500 Tax Credit
Tesla has made changes to its website, allowing customers in the US to receive the full federal tax credit of $7,500 for purchasing a Model 3, regardless of the model they choose. This includes the rear-wheel drive, long range, and performance versions. The same tax credit is also available for those purchasing the all-wheel, long-range, or performance Model Y.
In March, the U.S. government released revised guidelines for electric vehicles to qualify for a $7,500 federal electric vehicle tax credit to comply with the rules of the Inflation Reduction Act signed by the president last year. Under the new guidelines, which took effect April 18, vehicles with battery components that are 50 percent manufactured or assembled in the United States are eligible for a $3,750 tax credit. They can receive the full $7,500 credit only if their plants source at least 40 percent of their essential minerals from the United States or its free trade partners, which do not include China.
Many electric cars were removed from the list of eligible vehicles when the change came into force, but some were added again in the following days. You could only deduct $3,750 from your taxes on Tesla’s rear-wheel-drive, long-distance Model 3 because of the new guidelines, but that’s no longer the case. It’s not entirely clear whether Tesla has replaced the car’s batteries or found new suppliers to ensure its new Model 3 deliveries meet the requirements of the new guidelines. But that means in some places you can get the standard version of the vehicle for just over $30,000 — or maybe even less if the state has its own EV franchises.
BREAKING: @Tesla says ALL new Model 3 vehicles in the US now qualify for the full $7,500 EV tax credit, meaning the Model 3 now starts at $32,740 (with incentives). In some states, you can get it for under $30k.
Before, the RWD and Long Range versions only qualified for $3,750. pic.twitter.com/6K3aW60vse
— Sawyer Merritt (@SawyerMerritt) June 2, 2023
