Tesla Streamlines Electric Car Purchases: Direct Application of $7,500 Tax Discount
Prospective purchasers of Tesla electric vehicles (EVs) now have the opportunity to directly avail themselves of the $7,500 federal tax credit when acquiring a new Model Y or Model X Dual-Motor.
Tesla has communicated through its website that it can apply the point-of-sale rebate to the actual purchase price.
In practical terms, buyers of these specific Tesla models no longer need to pay the entire car price upfront and subsequently await the Internal Revenue Service (IRS) to reduce or eliminate their tax liability after the completion of the necessary federal tax income forms.
Direct Tax Benefit: Tesla Model Y/X Dual Motors
Purchasers of the Tesla Model Y and Model X Dual Motor can now take advantage of the $7,500 tax credit at the time of vehicle delivery rather than having to wait until filing their federal tax income forms.
This results in a lower effective purchase price.
In the scenario where buyers qualify for the complete tax deduction, they have the option to transfer the credit to the dealer, in this case, Tesla.
The dealer can then apply the reduction to the purchase price during delivery and subsequently receive reimbursement from the federal government.
While this streamlined process benefits the car buyer, it is essential to consider certain details outlined in the terms and conditions.
It is incumbent upon the buyer to ensure compliance with all requirements; otherwise, the IRS may demand repayment of the tax credit.
When making a purchase from Tesla, the Manufacturer’s Suggested Retail Price (MSRP) of the electric vehicle must not exceed $80,000 (for either Model Y or Model X).
Additionally, there are adjusted gross income (AGI) limitations: $300,000 for married couples filing jointly, $225,000 for heads of households, or $150,000 for all other filers.
Tesla Model Y and Model X Price Range
The entry-level Model Y is available at a reduced price of $36,490, down from the standard $43,990, for eligible buyers who qualify for the tax credit.
Similarly, the delivered price of the Dual Motor Model X is lowered from $79,990 to $72,490.
For purchasers opting for the larger and more expensive Model X, there is a notable 9.3% reduction in the purchase price.
In contrast, those choosing the Model Y experience a more substantial cut of 17%.
