Tesla is urging US Model 3 buyers to take delivery by the end of March. The Treasury Department and the Internal Revenue Service intend to issue an update to the federal rules for obtaining a tax credit for the purchase of EVs, and it is expected that Model 3 will receive a reduction in tax credits.
Tesla is urging its customers to “take delivery now” of their Model 3, as starting next month, the tax credit for car buyers is expected to be reduced. The company updated its website on Wednesday to say that the tax credit of up to $7,500 on Model 3 will be reduced. It was first established in January by the Biden administration's $430 billion Inflation Reduction Act.
Although the tax credit will be reduced, consumers will still be able to take advantage of it until such time as the federal rules are updated. Tesla explained that the Treasury Department and the Internal Revenue Service intend to make this change “no later than March 31st.” This means that all customers who will receive Model 3 delivery by 12:00 pm on April 1 will still be eligible for the $7,500 tax credit. Under current regulations, customers who buy a Tesla Model 3 for their own use and primarily drive it in the US are eligible for a tax credit.
The Treasury Department's latest guidance will partly address battery source requirements. Tesla Model 3 batteries are made from materials that were not mined in North America, so they will not be able to meet all the requirements. The release of the updated guidance will result in fewer vehicles receiving full or partial credit, according to a Reuters source who is purported to be a US official.
© 2023, Eva Fox | Tesmanian. All rights reserved.
We appreciate your readership! Please share your thoughts in the comment section below.
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.