Andy Nurman
January 12, 2024
Tesla recently announced that eligible customers can receive a $7,500 Federal Tax Credit when purchasing certain new Tesla models this year. This tax credit applies directly to the purchase price at the time of delivery for qualifying purchases. However, there are some limitations based on income thresholds and vehicle MSRP caps that customers should be aware of.
Individual filers are allowed up to two tax credit redemptions per year. Additionally, adjusted gross income cannot exceed $150,000 for single filers, $225,000 for heads of households, and $300,000 for married couples filing jointly.
The tax credit also only applies to vehicles below certain MSRP thresholds. For the recently launched 2024 Model 3 Highland, the credit is not valid. The previous version of Model 3 Performance is qualified. The Long Range and Performance versions of the Model Y are capped at $80,000, while the rear-wheel drive Model Y qualifies for the full $7,500 credit. Finally, the dual motor Model X qualifies up to an MSRP of $80,000.
Interestingly, the Inflation Reduction Act contains a loophole that allows leased EVs to receive the full $7,500 tax credit. This means that customers who lease a new 2024 Model 3 Highland can deduct the full $7,500 credit, whereas buyers cannot claim any credit on purchased Highland models.
