Tesla has officially revealed its electric vehicles that still retain access to the $7,500 federal incentive following the rule changes in 2024.
Over the last few months, Tesla has released a bunch of new statements about changes to the eligibility of its electric vehicles to the federal tax credit in 2024.
We are still calling it a “tax credit”, but it is effectively a point-of-sale incentive starting today.
The confusion came from changes to the eligibility rules that now require 50% of battery minerals to come from North America and 60% of battery components to be assembled in North America.
Tesla, like other automakers, have been having issues determining which of their vehicles would still have access to the tax credit or if they would see a reduced credit.
Most recently, Tesla said all Model 3 variants except Model 3 Performance would lose access and some Model Y variants might see their tax credit reduced.
Today, Tesla officially updated its list of vehicles eligible to the federal tax credit and confirmed that Model Y variants are all retaining access to the full tax credit:
- 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
It’s important to note that the price cap of $80,000 for SUVs and pickup trucks still applies. Therefore, the Model X Dual Motors gets the tax credit, but since it starts at $79,990, you have to buy the base version without any option.
Also, on the buyer’s side, the income limits still apply to be eligible to the tax credit:
- $300,000 for married couples filing jointly
- $225,000 for heads of households
- $150,000 for all other filers
However, with the new point-of-sale update in 2024, the federal tax liability for the year is not an issue anymore.
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