Tesla Model 3 Tax Credit Set to Reduce by March-End!
According to Tesla Inc, the $7,500 tax credit that has been in place for their 2023 Tesla Model 3 rear-wheel drive since January will be lowered by March 31. This decision is dependent on guidance that will be provided by the U.S. Treasury Department later this week regarding the sources of battery components.
The credit will still apply for deliveries made before the updated guidance is issued, and the guidance will have an impact on the credit available for certain electric vehicles, based on the sourcing of their batteries.
Tesla has stated that the Treasury Department's instructions regarding the electric vehicle tax credit, which is to be released by March 31, will lead to a reduction in the number of vehicles that qualify for complete or partial credits. Additionally, Tesla has mentioned that the tax credit may only be utilized by individuals who buy the model for their personal use within the United States.
The Treasury announced in February that it would expand the number of electric vehicles (EVs) eligible for up to $7,500 in tax credits from Tesla, Ford Motor, General Motors, and Volkswagen. The decision was made after the Treasury revised its definitions for classifying vehicles.