As of June 5, 2023, residents in certain California districts have the opportunity to purchase a standard-range Tesla Model 3 at less than half of its manufacturer’s suggested retail price (MSRP). The base rear-wheel-drive Model 3, which boasts an EPA-estimated range of 272 miles and accelerates from 0 to 60 miles per hour in 5.8 seconds, starts at $40,240.
However, when factoring in the available tax credits from both California and the federal government, the price of the Tesla Model 3 can significantly decrease. By meeting certain qualifications, the price can plummet to as low as $19,830. This substantial reduction in price is made possible through California’s Clean Vehicle Rebate Project (CVRP) and the federal tax credit.
To qualify for these incentives, individuals must meet specific criteria. The base Model 3 can be obtained for $37,830 by utilizing referral links and inventory discounts through the WaitingForTesla website. On top of this, the $7,500 federal tax credit, which is applicable to select electric cars, can further lower the price to $22,830. Additionally, California’s CVRP offers an additional $7,500 rebate, resulting in a final price of $22,830.
It is important to note that the federal tax credit is not available to everyone and applies only to vehicles manufactured in the United States, Mexico, or Canada. The vehicle must also meet certain battery requirements, and individuals within specific income brackets may benefit from the credit according to the established guidelines.
To qualify for the CVRP, applicants must either be residents of California or have a business based there. Moreover, they must meet specific income eligibility requirements. Individuals in higher income brackets are eligible for a $2,000 rebate, while those in lower- and middle-income brackets can receive an increased rebate of $7,500.
Residents of the San Joaquin Valley have an additional incentive available to them. By choosing a zero-emissions vehicle, they can obtain an extra $3,000 credit from the local air pollution control district.
These incentives not only apply to the Tesla Model 3 but also to several other electric vehicle models, such as the Ford Mustang Mach-E, Chevrolet Bolt EV, and Ford F-150 Lightning, among many others.
Even for those who do not reside in the San Joaquin Valley, the federal tax credit and CVRP can still lead to significant savings on their electric vehicle purchase. Various other states in the United States offer tax credits as well, with Colorado providing the most generous credit of $5,000 in the country.
Overall, these incentives make electric vehicles more accessible and affordable for consumers, contributing to the ongoing efforts to promote sustainable transportation options.
