Tax Rebates

Tax Rebates

When will the tax rebates end for the Tesla Model 3?

leskchan | 20 oktober 2016

The Federal $7,500 Tax Credit is based on first 200,000 EVs per manufacturer. For Tesla, you have to add up all the Models S and X too. If you look at the Model 3 400,000 reservations, you know not everyone will get it.

leskchan | 20 oktober 2016

This is how is it calculated per IRS. I don't know why IRS doesn't publish on all manufacturers or they just don't report.

https://www.irs DOT gov/businesses/irc-30d-plug-in-electric-drive-motor-vehicle-credit-quarterly-sales

ftarnay | 20 oktober 2016

But Tesla says Californios will be the first to get the 3. So even if you're far down the list but from CA, I think you have a chance to get the rebate. Just my thought.

WormtownKris | 20 oktober 2016

Phase out begins after a manufacturer hits 200,000 US sales of qualifying EVs (post 2009 sales). So lets say Tesla hits 200,000 on Jan 3. Every car sold in that quarter and the next quarter (thru June 30) gets the full $7500 tax rebate. The next 2 quarters begin the phase out, with sales in those months (thru Dec 31) receiving a 50% rebate, or $3,750. Then the NEXT two quarters complete the phase out, where sales in those months (Jan 1 thru June 30 of the next year) receiving a 25% rebate, or $1875. After that rebates are over.
Elon has already said Tesla would attempt to finesse the system so that as many US citizens enjoy the credit as possible (by switching delivery queue to ship outside the US near the end of a quarter so that the clock starts at the beginning of a quarter (like Jan 3 or July 2nd) and not at the end of a quarter (March 30 or December 27th).

leskchan | 20 oktober 2016

Also this is Federal. Different states have different rebates. For example, CA has an additional $2,500 EV credit that bases some on available funding. It ran out before and just got reinstated.

Linemanap | 20 oktober 2016

6 months of the full rebate will likely cover all current US reservations remember 400000 is world wide

Linemanap | 20 oktober 2016

6 months of the full rebate will likely cover all current US reservations remember 400000 is world wide

PhillyGal | 20 oktober 2016

@wormtown - Thanks for the correct and detailed answer. 200,000 begins phase out, isn't a limit.

A phase out that can and will be "finessed" to benefit as many people as possible.

shin404 | 21 oktober 2016

Remember if you don't earn enough income in the year you purchase your EV, you may not get full benefit of the federal tax credit, $7,500.

I would say $120k to $130k or more, your tax would not be offset with the credit. The credit is non-refundable. (The reminder will not be rolled over either.)

Considering the California rebate, CVRP,
you won't get $2,500 if you have more than $150k annual income ($300k for joint filers).

shin404 | 21 oktober 2016

I meant "UNLESS you earn $120k to $130k or more"

KP in NPT | 21 oktober 2016

I believe it has been posted in the past - but the individual income required is lower - I want to say around 76K.

jamilworm | 21 oktober 2016

@mp1156 I think you are correct. I thought it was in the 60s.

Octagondd | 21 oktober 2016

I would guess 100,000 to 150,000 Model ≡'s will get the full Federal credit depending on how fast they can ramp up production and how soon they switch to delivering internationally. As others have said, it all depends on the timing of number 200,000 S or X being delivered in the US, which Elon has stated he will attempt to get as many credits as possible.

I would love to have this $40k (including tax, title and delivery) turn into $30k once I get the credit and the California rebate.

jordanrichard | 21 oktober 2016

shin404 +1 Everyone keeps assuming they can in net effect subtract $7,500 from the cost of their car. You can only do so, IF you had $7,500 or more taken out of your pay for Fed taxes AND the $7,500 credit wipes out your tax liability.

EaglesPDX | 21 oktober 2016

Allowing the EV tax credit to be applied over time until it is used up vs. the "use or lose it" approach is an issue we need to address in Congress. Extending and expanding the tax credit to all plug-ins and not just the first 100,000 for each mfg. and increasing the amount to $20,000 would be a big boost to sustainable transportation in the US.

Something worth asking one's Congressman up for re-election and see how patriotic they really are beyond the flag lapel pin.

SUN 2 DRV | 23 oktober 2016

Jordan.... It has NOTHING to do with how much withholding is taken out of your pay... it can offset any portion of your US Federal Tax Liability.... and that liability can be intentionally increased during a particular year in various ways such as converting an IRA to a Roth IRA...

Readers, if you're not 100% clear on how to take advantage of a tax CREDIT then please consult a tax specialist.

gregcropper | 23 oktober 2016

Well said. This illustrates why Chevy is irresponsible to advertise their upcoming electrified economy car as priced at $29,995.

EaglesPDX | 23 oktober 2016

@gregcropper "This illustrates why Chevy is irresponsible to advertise their upcoming electrified economy car as priced at $29,995."

It also illustrates why Chevy advertises the Bolt at MSRP of $37,495". No mention of "$29,995" on the main page of the Chevy Bolt website at

Basic Bolt would be $29,995 after the rebate but Chevy does not promote the $7,500 tax credit as much as Tesla which headlines it on every buying page as the first price you see.

Hopefully we can get a progressive Congress and Dept. of Transportation to remove make some positive changes to the EV rebate.

1. Increase it to $10,000 per car.
2. Allow it to roll over until used.
3. Remove the 200,000 car limit per mfg.

gekcut | 23 oktober 2016

It looks like New York will offer a $2000 rebate for EV's starting in April, 2017. Assuming this goes through it will influence my decision about buying a 3 and what options to get.

jordanrichard | 24 oktober 2016

When GM revealed the Bolt, they plastered "$30K all over the place, albeit with the foot note of "after the Fed tax credit of $7,500" They know full well that people are going to fixate on that $30K and that not everyone will get $7,500 in a tax credit due to their tax situation.

Tesla "advertises" the base model M≡ as $35K before incentives. Knowing that not everyone will benefit from that $7,500 be it due to their individual tax situation or that the full credit won't be available.

Which one do think is misleading.......

Linemanap | 26 oktober 2016

It should be a rebate and be unlimited until climate change and pollution are under control. The cost of these rebates is just a drop in the bucket.

Red Sage ca us | 26 oktober 2016

Linemanap: It's the minute droplets of mist above the bucket after the drop splashes down. (smileyfacegrin)