WHICH TESLAS ARE ELIGIBLE FOR THE $7,500 FEDERAL TAX CREDIT
As the drive for automotive electrification moves forward, the US government has put strategies in place to encourage people to make the leap into zero-emissions motoring. One of those is the EV federal tax credit program as part of the Inflation Reduction Act (IRA). This means buyers of certain new models of electric vehicles may be eligible for a tax credit of up to $7,500, while those buying used electric cars may also receive a slightly smaller tax credit of up to $4,000. However, there are restrictions on which models are eligible based on the vehicle's MSRP, battery components and specifications, and where the car is assembled. This means prospective buyers need to be careful that their chosen car is still eligible for a tax credit in 2024. Here are the models in Tesla’s lineup that are currently eligible for the full $7,500 Federal Tax Credit:
Tesla
Tesla, Inc. is an American electric vehicle manufacturer largely attributed to driving the EV revolution. Through the Model S and subsequent products, Tesla has innovated and challenged industry conventions on numerous fronts, including over-the-air updates, self-driving technology, and automotive construction methods. Tesla is considered the world's most valuable car brand as of 2023, and the Model Y the world's best-selling car in the same year, but the brand's greatest achievement is arguably the Supercharger network of EV charging stations.
Eligibility for the federal tax credit is dependent on various criteria, including the vehicle's MSRP, battery components and/or critical minerals sourcing, location of final assembly, and the modified adjusted gross income (AGI) of the buyer.
Model 3 (Long Range AWD & Performance)
| Model | Model 3 Long Range AWD | Model 3 Performance |
|---|---|---|
| Powertrain setup | Dual-Motor AWD | Dual-Motor AWD |
| Power output | 393 hp | 510 hp |
| 0-60 mph | 4.2 seconds | 2.9 seconds |
| Top Speed | 125 mph | 163 mph |
| MSRP | $47,490 | $54,990 |
The two versions of the Model 3 sedan eligible for the tax credit are the all-wheel-drive Long Range and the Performance. In order to remain eligible, the cost, including options, for these two models cannot exceed $55,000. This isn't as much of a problem for the Long Range, which comes in well below the cut-off for sedans. Its go-faster sibling, which is arguably the performance buy of the decade, is just $10 shy of $55k. This means you can't add any optional extras, so you'd better be okay with a Stealth Grey exterior.
The base Rear-Wheel Drive model is not eligible for the tax credit because its battery pack does not qualify under government regulations.
Why The Tesla Model 3 Performance Is A Better Buy Than The Model 3 Long Range
With recent EV tax credit rulings, the Tesla Model 3 Performance may be the performance bargain of the decade.
Model Y (Long Range RWD, Long Range AWD, & Performance)
| Model | Model Y Long Range RWD | Model Y Long Range AWD | Model Y Performance |
|---|---|---|---|
| Powertrain setup | Single-Motor RWD | Dual-Motor AWD | Dual-Motor AWD |
| Power output | 295 hp | 425 hp | 455 hp |
| 0-60 mph | 6.5 seconds | 4.8 seconds | 3.5 seconds |
| Top Speed | 135 mph | 135 mph | 155 mph |
| MSRP | $44,990 | $47,990 | $51,490 |
All three variants of the Model Y SUV are eligible for the federal tax credit: the RWD and AWD versions of the Long Range, plus the Performance version. The requirements for SUVs state that the price with options for delivery may not exceed $80,000 if buyers wish to capitalize on the tax credit. That means you can stack on optional extras and not have to worry about losing out on tax credits.
It makes sense for this model to be as affordable as possible because it is currently Tesla's bread and butter. All the battery pack components and minerals are sourced in the USA. In fact, the Tesla Model Y is the most American car you can buy. It's also the best-selling car in the world, but it will face some stiff competition in the coming years.
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Model X AWD
| Model | Model X AWD |
|---|---|
| Powertrain setup | Dual-Motor AWD |
| Power output | 670 hp |
| 0-60 mph | 3.8 seconds |
| Top Speed | 155 mph |
| MSRP | $77,990 |
Only the standard all-wheel drive version of the Model X is eligible for the federal tax credit, while its high-performance sibling, the Model X Plaid, is not. The reason why is fairly simple. The cut-off for SUVs is $80,000, and the Plaid has an MSRP of just under $93,000.
It's worth noting that you have to keep an eye on the options here, too. With only $2,010 dollars to spend before the cut-off, you can add Ultra Red or Lunar Silver, both of which are $2,500 extra. The $5,500 22-inch Turbine Wheels, $3,500 seven-seat, and $6,500 six-seat layout are also out. A yoke steering wheel only costs $1,000, but we wouldn't go for that option even if it was free.
Why Don't Any Other Teslas Qualify?
The Tesla Model S falls above the $55,000 threshold for sedans. The All-Wheel Drive model has an MSRP of $72,990, while the Plaid costs $87,990. While the latter does not qualify, it is the cheapest 1,000-horsepower car on sale in the USA, and that is kind of cool. Even without the tax credit, it's a performance bargain.
Cheapest 1,000 Horsepower Cars You Can Buy In 2024
The four-figure beasts with the smallest price tag.
According to Tesla's website, the Cybertruck is likely to qualify for the tax credit later in 2024. If it retains the current pricing structure, the Rear-Wheel Drive and All-Wheel Drive models will qualify. The Rear-Wheel Drive has an estimated price of $57,390, a range of 250 miles, and can sprint to 60 mph in 6.5 seconds. The All-Wheel Drive will sell for an estimated $76,390, has a range of 340 miles, and will get to 60 mph in 4.1 seconds. The Cyberbeast costs well over $90k, so it's not eligible.
2024-07-03T06:06:54Z dg43tfdfdgfd