Home United States USA — Financial Only 1 of Tesla's Models Qualifies for Biden's $7,500 Rebate

Only 1 of Tesla's Models Qualifies for Biden's $7,500 Rebate

139
0
SHARE

Tesla will again qualify for a tax credit after reaching its original cap in 2018, but not without stipulations restricting credits to a specific price point.
President Joe Biden signed the landmark Inflation Reduction Act into law Tuesday, a step that addresses many of his campaign goals, including reducing carbon emissions and creating more jobs in America. The law enhances restrictions on which electric vehicles qualify for tax credits—a win-lose situation for several electric vehicle manufacturers, including Tesla.
Tesla already reached its previous tax credit allotment in 2018 by selling more than 200,000 vehicles. Since then, Tesla buyers haven’t qualified for a tax credit. The Inflation Reduction Act removes the manufacturing cap but establishes other stipulations.
To qualify for the tax credit, EVs must cost below $55,000 for sedans, hatchbacks and wagons, and below $80,000 for SUVs, trucks and vans. That makes only one of Tesla’s models—the Model 3—eligible for the credit unless the Model Y is classified as an SUV rather than a station wagon.
Many hopeful EV owners also might be required to scale back their EV wish list if they want to qualify for the credit, as add-ons lead to dramatic price hikes.

Continue reading...