The IRS reveals which Tesla models are eligible for US tax credit in 2023

Under Internal Revenue Code Section 30D, the Inflation Reduction Act gives eligible buyers the chance to claim a clean vehicle tax credit of up to $7,500. It slowed demand because people were delaying their purchases until the new year. However, Tesla launched a sale at the end of the year, offering a $7,500 discount on their vehicles to encourage people to act quickly.

Models of Tesla that are eligible for the tax credit

On December 31, 2022, the Tesla discount ends, and the new government tax credit begins. Yet, it is vital to take note that not all Tesla fit the bill for the spotless vehicle tax break. Due to their high prices, the Model S and Model X are not included on the list of eligible vehicles; however, the rear-wheel and long-range versions of the Model 3 were included if their suggested retail price was less than $55,000.

Six renditions of the Model Y likewise made the rundown. Long-range, performance, and all-wheel drive models in five- and seven-seat configurations are among them.

It appears that the IRS collaborates closely with automobile manufacturers to select eligible models. This may indicate what Tesla intends to offer in 2023.

The IRS says that the five-seat Model electric vehicles are also eligible Model Y with all-wheel drive and long range. Performance does not currently qualify for the tax rebate because its MSRP is higher than the $55,000 threshold. To keep these models below the $55,000 MSRP limit, we’ll have to wait and see if Tesla makes any changes to them.

Older electric vehicles are also eligible

The tax breaks aren’t just for cars that are bought in 2023. Purchases were made between August 17, when the legislation was announced, and December 31, 2022. It may also be eligible for a tax break, according to the IRS website.

Utilize the Department of Energy’s website’s vehicle identification number decoder to determine whether your vehicle satisfies the requirements.

The Inflation Reduction Act

The Inflation Reduction Act, according to the government, is “the most significant climate legislation in U.S. history.” It contains $739 billion for “green power, lower costs through tax credits, reduce emissions, and advance environmental justice.”

Additionally, the Inflation Reduction Act provides several EV charging credit options. Installers of EV chargers are eligible for a property credit. Up to $100,000 per charger, the IRS will deduct up to 30% of the total cost of purchasing and installing charging equipment.

Lastly, the United States will be able to cut emissions by 40% by 2030, according to experts.

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