Attention Tesla owners and those considering owning a Tesla! There’s some great news that you won’t want to miss. The Tesla tax credit is back in 2023, but only for a limited time.
This is a great opportunity to save big on your purchase or lease of a Tesla electric vehicle. I’ll take a look at what the Tesla tax credit is and how you can take advantage of it, so you can get the most out of your new ride. So buckle up and I’ll get started!
Tesla Tax Credit
$7,500 Federal Tax Credit
Customers who take delivery of a qualified new Tesla and meet all federal requirements are eligible for a tax credit up to $7,500. This credit amount applies to deliveries now and may change during March 2023, at which point the credit value may be reduced.
After searching on Reddit, I found out that you can no longer delay your delivery date by more than one week (once), so you can wait for a better trade-in offer or more reductions on these vehicles, but I wouldn’t hold my breath given how steeply discounted these cars are already.
3 RWD $46,990 => $43,990
3 Performance $62,990 => $53,990
Y LR $65,990 => $52,990 => $52,990
Y Performance $69,990 => $56,990
S Dual Motor $104,990 => $94,990
S Plaid $135,990 => $114,990
X Dual Motor $120,990 => $109,990
X Plaid $138,990 => $119,990
Adjusted Gross Income Limitations
- $300,000 for married couples filing jointly
- $225,000 for heads of households
- $150,000 for all other filers
For those eyeing the electric vehicle (EV) tax credit, here are the income limits you need to know: If you’re a happily married couple filing jointly, you can still snag that credit if your income doesn’t exceed $300,000. However, if you’re the head of your household and your earnings surpass $225,000, you’ll have to wave goodbye to the EV tax credit.
And for all other filing statuses, whether you’re single or in a unique situation, the magic income number to stay under is $150,000 to qualify for this enticing EV credit. It’s a financial dance where precision matters, so keep those numbers in mind as you navigate the world of electric vehicles and tax benefits.
The vehicle price at time of delivery must not exceed the following caps. This price includes optional equipment physically attached to the vehicle at the time of delivery and excludes software features, accessories, taxes and fees.
- Model 3: $55,000
- Model Y with 5 seats: $55,000
- Model Y with 7 seats: $80,000
And these prices are all before the tax credit, except the Y Performance because you can’t get it in a 7-seater.
3 RWD $43,990 – $7,500 = $36,490
3 Performance $53,990 – $7,500 = $46,490
Y LR $52,990 – $7,500 = $45,490
Y LR with 7 seats $56,990 – $7500 = $49,490
In order to qualify for a tax credit, your tax situation must be taken into account. For more information on tax planning, we recommend that you speak with a tax professional.
In conclusion, the Tesla tax credit is an important tool for the electric car maker, offering buyers a substantial incentive to purchase a Tesla vehicle. The program will be available again in 2023, but only for a limited time.
With increasing competition from other automakers in the electric car market, Tesla has to make sure it keeps up its production and can compete on price and features. Buyers should take advantage of this incentive while they can, as it’s not often you have the chance to get a discount of up to $7,500 on your purchase.
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