Tesla Model 3 variant added to EV tax credit qualification list
Tesla’s Model 3 Long Range All-Wheel-Drive configuration has appeared on the list of vehicles qualifying for the IRS’s $7,500 electric vehicle tax credit, enabling carbuyers to get their rebate in a new Point of Sale method that the agency announced late last year.
The vehicle has landed on the list and becomes the second Model 3 configuration available for the immediate tax credit, as the Model 3 Performance is also on the list.
In October, the U.S. government decided to initiate a new Point of Sale system for the EV tax credit. When people bought EVs in the past, the tax credit on a qualifying vehicle would be given in the form of a break on the following year’s tax return.
However, this was an inefficient method of getting people their credit, so the IRS and the Department of Treasury decided to enable a Point of Sale system that immediately lowers the price of a new vehicle by $7,500 or $4,000 for a used EV.
“For the first time, the IRA allows consumers to reduce the up-front cost of a clean vehicle, expanding consumer choices and helping car dealers expand their businesses. The IRS has focused on streamlining this process for car dealers as part of its commitment to improving service and helping taxpayers claim the credits they are eligible for,” Laurel Blatchford, Chief Implementation Officer for the Inflation Reduction Act, said.
Tesla embraced the new system in early January after it took effect on the first of the year. The automaker had an option for the immediate implementation of the tax credit on its website.
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