When time is tight, every penny counts. That goes to get money back on a Tax also. If you bought a Teslaor another type of electric vehicle, you may be eligible for more $7,000 won in tax CreditS.
In a move to encourage the use of fuel-efficient cars, the government has included in the tax code a refund for those who choose to buy electric and fuel-cell vehicles. Teslaa big name in the industry, has some models qualify for this credit.
This is the amount that can be obtained with the 2023 Tesla Tax Credit and all requirements that must be met to receive that credit.
Do you get a tax credit for buying a Tesla?
Correct. The government allows various tax credits to purchase plug-in electric vehicles (EVs) or fuel cell vehicles (FCVs).
Tesla, arguably the most famous EV in the game, is on that list.
The amount of tax credit you may qualify for depends on when you buy a Tesla.
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Tesla Tax Credit 2023:
The Internal Revenue Service allows for a clean car tax credit of up to $7,500 for 2023. Tesla has several qualifying models including:
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Tesla Model 3 rear-wheel drive
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Long Range Tesla Model 3
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Tesla Model Y all-wheel drive – 7-seat variant (3 rows)
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Tesla Model Y Long Range – 7-seat variant (3 rows)
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Tesla Model Y Performance – 7-seat variant (3 rows)
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Tesla Model Y all-wheel drive – 5-seat variant (2 rows)
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Tesla Model Y Long Range – 5-seat variant (2 rows)
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Tesla Model Y Performance – 5-seat variant (2 rows)
For a vehicle to be eligible for this specific credit, the vehicle must be purchased on or after January 1, 2023, and manufactured in North America. In addition, the manufacturer’s suggested retail price (MSRP) must not exceed $80,000 for trucks, sport utility vehicles and pickup trucks, and $55,000 for other vehicles.
There are also income requirement associated with the credit.
Taxpayers must not have an adjusted gross income (AGI) greater than:
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$300,000 for married couples filing jointly
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$225,000 for head of household
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$150,000 for all other applicants
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Electric vehicle tax credit from 2022 and earlier
If you purchased an eligible plug-in electric vehicle (EV) between 2010 and 2022, you may also be eligible for a tax credit of up to $7,500.
There is an additional requirement for electric vehicles purchased after August 16, 2022 but before 2023. These vehicles must be last assembled in North America. You can determine this by looking at your vehicle’s vehicle identification number (VIN) and cross-matching it to your vehicle’s vehicle number. United States Department of Energy database.
As for Tesla, models are being phased out and those purchased after January 1, 2020 will not be eligible for the credit. This chart indicate what date range can still guarantee your money back.
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This article originally appeared on USA TODAY: What is the Tesla tax credit? Electric vehicle tax credit explained in 2023.
