What You Need to Know about the Federal EV Tax Credit Phase Out
Since 2010, anyone purchasing a qualified electric vehicle, including any new Tesla model, has been eligible to receive a $7,500 federal tax credit. This tax credit begins to phase out once a manufacturer has sold 200,000 qualifying vehicles in the U.S.
Last month, Tesla sold its 200,000th such vehicle, and since then we’ve heard from some customers asking how the phase out of the tax credit works. The following federal income tax credit amounts are available to anyone who purchases a new Tesla Model S, Model X or Model 3:
While the tax credit will exist in some form through the end of 2019, those who want the full $7,500 tax credit will need to take delivery of their vehicle by the end of this year. Please remember that your eligibility for income tax credits depends on your personal tax situation. We recommend speaking with a tax professional for guidance.