Tesla enthusiasts and potential buyers of the Model Y and Model X Dual-Motor can now revel in a groundbreaking development as the American automaker unveils a direct application of the $7,500 federal tax credit to the purchase price. This means that purchasers of these specific Tesla models can bypass the conventional process of paying the full price upfront and waiting for IRS adjustments post-tax filing.
For those eligible for the full tax deduction, a seamless transfer of the credit to the dealer, in this case, Tesla, allows for an immediate reduction in the purchase price at the time of delivery. The dealer subsequently reclaims the credit from the federal government. While this approach significantly simplifies the buying process, it’s crucial to navigate through some fine print considerations.
Buyers bear the responsibility of ensuring strict adherence to all requirements; failure to do so might prompt the IRS to seek reimbursement of the tax credit. When acquiring a Tesla directly, specific conditions apply, such as ensuring the EV’s MSRP remains below $80,000 (pertaining to Model Y or Model X). Adjusted gross income (AGI) limitations must also be met, with thresholds set at $300,000 for married couples filing jointly, $225,000 for heads of households, or $150,000 for all other filers.
In the realm of leasing, all Tesla EVs hold the potential to leverage the tax credit. Through a unique loophole, where the dealer or manufacturer assumes ownership of the vehicle, applying for the commercial vehicle tax credit becomes feasible. This benefit then trickles down to the lessee. Notably, this isn’t exclusive to Tesla but extends to any electric vehicle maker, contingent on the dealer’s decision to pass on the advantages.
So, what’s the financial impact? In practical terms, the most affordable Model Y becomes accessible for just $36,490 (down from $43,990) for eligible buyers, while the Dual Motor Model X witnesses a reduced delivered price from $79,990 to $72,490.
Buyers eyeing the larger and pricier Model X can relish a noteworthy 9.3% reduction in the purchase price. Meanwhile, those opting for the Model Y experience an even more substantial cut of 17%.
As of the article’s composition, the recently-launched Model 3 “Highland” electric sedan in the U.S. doesn’t currently qualify for the tax credit upon purchase. However, potential rebates might be accessible for leasing, emphasizing the importance of thorough research before committing to a new car. The refreshed Model 3 enters the market at $38,990 without any incentives.