Tesla’s cars haven’t been eligible for an EV tax credit for some time — since the automaker reached the previous cap of 200,000 vehicles sold. But with President Biden’s Inflation Reduction Act (IRA), that cap will be waived by January 1.
Under the new legislation, zero emissions vehicles will be eligible for up to $7,500 in tax credits if automakers can show that their battery components were made or assembled in North America and that a certain percentage of battery critical materials were extracted or processed in countries with which the U.S. has a free trade agreement. If an automaker can only show half, then they’ll only get half of the rebate, which will probably be the case for the next few years, considering most critical materials are still sourced from China.
Which brings us back to the $3,750 discount — the same amount of money a Tesla buyer is expected get back as a rebate next year. But instead of waiting for tax season, Tesla’s offer allows customers to reap the benefits now.
Tesla’s discount also doesn’t discriminate based on income or vehicle manufacturer suggested retail price (MSRP), according to messages received by Tesla customers. Under the IRA’s tax incentive, single tax filers are eligible if their income is below $150,000; heads of households if income is below $225,000; and joint filers’ if income is below $300,000. Additionally new electric cars and SUVs that cost more than $55,000 and $80,000, respectively, don’t qualify for the tax credit.
The Model 3, a compact car, starts at around $47,000 but can easily go over $66,000 depending on model, trim and year. And the 2022 Tesla Model Y starts at $64,990, but a fully loaded performance model can go for more than $80,000.
Tesla offers $3,750 discount for Model 3, Model Y deliveries in December by Rebecca Bellan originally published on TechCrunch