When money is scarce, every penny counts. That also applies to money returned on a tax return. If you bought a Tesla or another type of electric vehicle, you could be eligible for more than $7,000 in tax credits.
In order to encourage the use of fuel-efficient vehicles, the government has written a money-back incentive into the tax code for those who purchase electric and fuel cell vehicles. Tesla, a household name in the industry, has several models that qualify for this credit.
Here’s how much money is up for grabs with 2023’s Tesla Tax Credit, as well as all the requirements for receiving it.
Is there a tax credit for purchasing a Tesla?
Yes. The government offers a variety of tax breaks for the purchase of plug-in electric vehicles (EVs) or fuel cell vehicles (FCV).
2023 Tesla Tax Credit:
For 2023, the Internal Revenue Service allows for a $7,500 clean vehicle tax credit. Tesla has several models that qualify, including:
Rear Wheel Drive Tesla Model 3
Tesla Model 3 Extended Range
Tesla Model Y All-Wheel Drive with 7 Seats (3-rows)
Tesla Model Y Long Range with 7 seats (3-rows)
Tesla Model Y Performance with 7 Seats (3-rows)
Tesla Model Y All-Wheel Drive with 5 seats (2-rows)
Tesla Model Y Long Range with 5 seats (2-rows)
Tesla Model Y Performance with 5 seats (2-rows)
To be eligible for this credit, the vehicle must have been purchased on or after January 1, 2023, and manufactured in North America. Furthermore, the manufacturer suggested retail price (MSRP) for vans, sport utility vehicles, and pickup trucks cannot exceed $80,000, and $55,000 for other vehicles.
The credit is also subject to income requirements.
Prior to 2022, the EV Tax Credit
If you bought a qualified plug-in electric vehicle (EV) between 2010 and 2022, you may be eligible for a $7,500 tax credit.
For EVs purchased after August 16, 2022 but before 2023, there is an additional requirement. These vehicles must have been final assembled in North America. You can find out by looking at your vehicle identification number (VIN) and comparing it to the database maintained by the United States Department of Energy.
Models are being phased out at Tesla, and vehicles purchased after January 1, 2020, are not eligible for a credit. This chart shows which date ranges may still entitle you to a refund.
