Tesla, the electric car manufacturer, has recently announced significant changes to the tax incentives for its Model 3 vehicles. The changes come as a result of the company reaching a milestone of 200,000 electric vehicles sold in the United States, triggering a phase-out of the federal tax credit for Tesla buyers.
Previously, buyers of Tesla’s Model 3 were eligible for a $7,500 federal tax credit. However, with the company reaching the 200,000 vehicle threshold, the tax credit will now be reduced to $3,750 for vehicles delivered between January 1 and June 30, 2019. After that period, the tax credit will be further reduced to $1,875 for vehicles delivered between July 1 and December 31, 2019. After December 31, 2019, no federal tax credit will be available for Tesla buyers.
The phase-out of the tax credit is part of a federal program designed to incentivize the purchase of electric vehicles and reduce carbon emissions. The program provides a tax credit of up to $7,500 for the purchase of an electric vehicle, with the credit amount gradually decreasing as each manufacturer reaches the 200,000 vehicle sales threshold.
While the reduction in the tax credit may be disappointing for some Tesla buyers, it is important to note that the company’s vehicles are still eligible for state-level incentives. Many states offer their own tax credits or rebates for electric vehicle purchases, which can help offset the cost of buying a Tesla.
In addition to state-level incentives, Tesla is also offering its own incentives to help offset the reduced federal tax credit. The company has announced that it will be reducing the price of all its vehicles by $2,000 in order to make up for the reduced tax credit. This means that even with the reduced federal tax credit, buyers can still save money on their Tesla purchase.
Overall, while the reduction in the federal tax credit may be disappointing for some Tesla buyers, it is important to remember that the company’s vehicles are still eligible for state-level incentives and that Tesla is offering its own incentives to help offset the reduced tax credit. As electric vehicles become more popular and more manufacturers reach the 200,000 vehicle sales threshold, it is likely that the federal tax credit program will continue to evolve and change.
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- Source: Plato Data Intelligence.