In the US, with the Inflation Reduction Act, Tesla cars will once again qualify for incentives for some consumers that meet income limits. Previously there was limit of 200,000 vehicles per manufacturer which Tesla exceeded. The law goes in effect January 1st 2023, Tesla buyer can claim a credit between $3,750 to $7,500.
New Inflation Reduction Act EV credit Requirements
EV cars that have at least 7 kWh battery.
$3,750 credit is enabled for meeting the Critical Minerals requirement. To meet this requirement certain percent of critical minerals used in batteries need to be extracted or processes in the US or in a US free-trade agreement partner. or recycled in North America. In 2023, the percent starts at 40% and increases to 80% after 2027.
To receive another $3,750 credit, it must meet the Battery Components requirement. Certain percent of the battery’s components need to be manufactured or assembled in North America. It starts at 50% for 2023 and rising to 100% by 2029.
Pricing Requirement
MSRP should be less than $80k for vans, SUV, and Pickup trucks. Passenger cars can not exceed $55k.
Income Requirement
$300k File jointly
$225k head of household
$150k single filer
Tesla Cars Qualify
Tesla cars likely meets the Battery Components portion since it makes their battery packed in US. The Model Y and the Model 3 Standard Range meet the pricing requirement. This has led to some reservation holders who will be getting their cars in December to push out their delivery date or cancel their orders. Maybe partly because of this, Tesla is now offering a $3,750 credit if customer takes delivery of a new Model 3 or Model Y in December.
From Tesla website, you can click on Existing Inventory, enter zip code, select the Models, Trim, Wheels and other option. The special credit is printed near the top above the search results.
Inflation Reduction Act EV Credit https://afdc.energy.gov/laws/409