Tesla has unveiled the electric vehicle models that will continue to qualify for the $7,500 federal incentive following the rule adjustments in 2024. The automaker's recent statements have highlighted modifications to the eligibility criteria for its electric vehicles concerning the federal tax credit, which now operates as a point-of-sale incentive.
The changes in eligibility rules stipulate that 50% of battery minerals and 60% of battery components must originate from North America. These alterations have led to uncertainties among automakers, including Tesla, regarding which vehicles would still retain access to the tax credit or potentially face a reduced credit.
Tesla has clarified its updated list of eligible vehicles for the federal tax credit, confirming that all variants of the Model Y will retain access to the full tax credit. The breakdown of eligible models and corresponding tax credits is as follows:
- 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 is essential to highlight that the price cap of $80,000 for SUVs and pickup trucks remains in effect. Consequently, while the Model X Dual Motor qualifies for the tax credit, potential buyers must opt for the base version without additional options, as it starts at $79,990.
Buyers are also subject to income limits to be eligible for the tax credit, with the following thresholds:
- $300,000 for married couples filing jointly
- $225,000 for heads of households
- $150,000 for all other filers
Importantly, with the shift to a point-of-sale incentive in 2024, the federal tax liability for the year no longer poses a hindrance for eligible buyers. As Tesla navigates these changes, the clarity provided on eligible models aims to guide consumers and align with the evolving landscape of electric vehicle incentives.