Here are all Tesla models eligible for the Federal Tax Credit

Tesla has announced that the federal tax credit is set to end on September 30 and shared details about models that could bring customers subsidies. New vehicles can claim the $7,500 credit off the purchase price on cash and finance purchases. The Model 3 has an MSRP ceiling of $55,000, which shouldn’t increase on the following models:

• Model 3 Performance
• Model 3 Long Range All-Wheel Drive
• Model 3 Long Range Rear-Wheel Drive

Model Y has an MSRP cap of $80,000 for these models

• Model Y Performance
• Model Y Long Range All-Wheel Drive
• Model Y Long Range Rear-Wheel Drive
• Model Y Long Range All-Wheel Drive (2026 model year)
• Model Y Long Range Rear-Wheel Drive (2026 model year)
• Model Y Launch Series Long Range All-Wheel Drive (2026)

Cybertruck is eligible for EV purchase subsidies with $80k price ceiling, including

• Cybertruck All-Wheel Drive (2025 model year)
• Cybertruck Long Range

Used Tesla models are also eligible for a tax credit of up to $4,000 or up to 30% of the purchase price for finance and cash options for vehicles priced at $25,000 or less.

This credit requires customers to meet certain terms, including personal ownership and use after purchase instead of resale. This vehicle must be used in the US, and adjusted gross incoming must not exceed: $300k for married couples, $225k for household heads and $150k for all other filers.

Tesla Model 3 Quicksilver (image – Tesla)

Commercial vehicles

The tax credit benefits are also available for commercial vehicles. Under the 2023 Inflation Reduction Act, businesses and tax-exempt organizations can get up to $7,500 credit on new Tesla vehicles with gross vehicle weight rating (GVWR) of up to 14,000 pounds.

Offers

These incentives are stackable with other offers such as low financing rates and referrals. Tesla may also announce some special perks by the deadline to increase sales.