Tesla
These Tesla EVs to qualify for $7,500 tax credit in 2024
It’s 2024 and the Federal tax incentive amounts and requirements have been changed for this year’s electric vehicles (EV). Today, Tesla also updated its list of EVs that will be eligible for the $7,500 tax credit.
Tax Credit for Each Vehicle:
- Model 3 Performance: $7,500
- Model X Dual Motor: $7,500
- Model Y Rear-Wheel Drive: $7,500
- Model Y Long Range: $7,500
- Model Y Performance: $7,500
AGI Limitations
- $300,000 for married couples filing jointly
- $225,000 for heads of households
- $150,000 for all other filers
However, customers who want to claim the tax credit need to meet qualification requirements including the following:
- Customers must buy it for their use, not for resale
- Use the vehicle primarily in the U.S.
- Adjusted Gross Income (“AGI”) limitations
- MSRP price caps
IRA requirements for a $7,500 EV tax credit include a percentage of battery components assembled in North America by 60% and a percentage of critical minerals sourced from North America or a U.S. free trade partner by 50%.
In other words, automakers that source electric vehicle battery components from a foreign entity of concern, such as China, will no longer be eligible for the credit starting January 1, 2024.
Based on the above-mentioned list and requirements, Tesla Model 3 RWD and LR are the ones to lose this tax credit. For now, it’s unclear from the official list of eligible vehicles based on the new changes made in the IRA.
