Tesla: All Model 3s and Model Ys in the US now qualify for the full $7,500 tax credit

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• US government promotes measures to protect the climate, including the purchase of e-cars
• Conditional tax credit
• All Tesla Model 3s are eligible for Purchase Rewards

The investment package approved as part of the IRA with a volume of over 400 billion US dollars also includes a tax credit in the form of a purchase premium for electric cars. When buying an electric car, for example, up to 7,500 US dollars are deducted from the price of the car. The vehicle is thus cheaper for the buyer, but the respective manufacturer receives the full price.

However, since US President Joe Biden not only wants to support the introduction of climate-friendly electric vehicles in the country, but also wants to strengthen the domestic supply chain, certain conditions must be met for the premium to flow in full. Among other things, the electric vehicle must have been assembled in North America and – depending on the vehicle type – may not cost more than US$ 55,000 or US$ 80,000. In addition, requirements regarding the origin of the minerals required for the batteries must be met.

Full credit for all variants of Model 3 and Model Y

As Tesla explains on its website about the US incentives, the amount and requirements can always change. For example, new battery procurement rules went into effect in April 2023, reducing the tax credit for the Model 3 Standard Range Rear Wheel Drive and Long Range All-Wheel Drive to $3,750 each. However, the full tax credit of $7,500 still applied to the Model 3 Performance and all three variants of the Model Y.

But at the beginning of June, Tesla was able to announce that all six Tesla Model 3 and Model Y variants – from the base to the top version – are now entitled to the full tax credit of $7,500. It is not yet clear how Tesla achieved this, but according to “MarketScreener” the US government has on its website fueleconomy.gov. the changes confirmed.

As a result, Model 3 buyers now effectively need even less than those originally purchased by Elon Musk target $35,000 for a new vehicle. The price for the entry-level version of the Tesla Model 3 in the USA starts at 32,000 US dollars after the tax credit.

22 models fully qualified

There are now 22 in all electric carModels are eligible for the full US tax credit, including some General Motors and Ford models. However, Tesla’s Model S and Model X remain ineligible for an IRA tax credit due to their high prices.

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Image Credits: Tesla, Josh Edelson/AFP/Getty Images