Thinking about buying a new Tesla? You'd better hurry up! The $7,500 federal tax credit, a financial incentive for lowering the up-front costs of electric vehicles, expires in less two weeks.
The tax credit is only available on the first 200,000 qualified EVs sold in the United States by each manufacturer. Tesla shipped its 200,000th EV in July and, as a result, the federal tax credit deal is winding down. From January, the credit amount drops to $3,750 before reducing further to $1,875 in July 2019. From 2020, there will be no federal tax credit available on the purchase of new Tesla cars.
If you want to take the plunge and cough up for a new Tesla Model 3, for example, you can still qualify for the full $7,500 federal tax credit but only if you take delivery of your new electric vehicle before the end of the year. Tesla says that it is doing everything it can to ensure that anyone who orders a vehicle now can take delivery in time to take advantage of the savings.
In a blog post, Tesla wrote: "To help ensure vehicles are available, we’ve released all our fleet vehicles – like those used for test drives – and vehicles where the original customer can’t take delivery by the end of the year."
In addition to the federal tax credit, several states also offer their own financial incentives for the purchase of new EVs. California offers a $2,500 state rebate, whilst Colorado offers tax credits up to $5,000.
Connecticut residents are eligible for a $2,000 rebate as well as exemption from state emissions testing and a reduced vehicle registration fee. New York offers rebates up to $2,000, whilst Pennsylvania offers them up to $1,750.
The federal tax credit restrictions are applied to each manufacturer individually. Tesla and General Motors are the only companies to have to hit the 200,000 limit so far. Reports in December suggest that BMW has sold around 80,000 EVs in the US, Toyota is on 95,000, Ford more than 110,000 and Nissan more than 125,000.
Have you taken advantage of the $7,500 federal tax credit incentive scheme or know anyone who has? Let us know in the comments below.
Source: Tesla Blog