Tick, Tick Goes The Tax Credit Countdown — $7,500 Savings Go Bye Bye On Teslas After December 31, 2018

The clock is officially ticking for Tesla buyers in the US to receive the full $7,500 federal tax credit for electric cars. Tesla delivered its 200,000th vehicle this month, the company confirmed to Jalopnik, which means a slow phase-out of the tax credit has begun.

Tesla customers who take delivery of their cars — regardless of whether it’s a Model S, X, or 3 — between now and December 31st, 2018, will still be eligible for the full $7,500 credit from the IRS. Customers who take delivery of their cars between January 1st and June 30th, 2019, will only be eligible for a $3,750 credit. And customers who take delivery of their cars between July 1st and December 31st, 2019, will be offered just $1,875. After that, the incentive is dead.

Put in place early on in the Obama administration, the tax credit was seen as a tool that could be used to encourage customers to buy plug-in electric or hybrid vehicles. This would simultaneously help advance the president’s climate and clean energy goals while offering consumers a bit of a break while the cost of battery technology slowly came down...

SanJoseDriver - 7/12/2018 11:43:43 AM

-2 Boost

It was always predicted that Tesla would hit 200k this quarter. If anything, this will put pressure on reservation holders to opt for the more expensive models to ensure getting the full rebate in time. We will see how this impacts sales over time.

TomM - 7/12/2018 12:21:32 PM

+3 Boost

Only Gm - Nissan - and Tesla are in this situation - all likely to go over limit this year.

WHat that will do is give OTHER manufacturers substantial advantage ove those three in the future - until THEY get their 200,000.

WE will not really know how actual competitive sales are affected until the program ends - but one thing can be sure - $7500 is a big incentive for buying some other car Brand.

Truthy - 7/12/2018 2:39:39 PM

0 Boost

Has the price of batteries dropped? In the last 18 months the price of cobalt has more than tripled. Each electric car has 50 lbs or more. The supply/demand will only get worse as more electric cars come to market.

Truthy - 7/12/2018 2:41:05 PM

+1 Boost

I suspect that GM, Tesla and Nissan have already sourced a portion of their requirement. Those coming out later may have more difficulty sourcing cobalt.

Truthy - 7/12/2018 3:35:38 PM

+3 Boost

coch - excellent point.

Truthy - 7/12/2018 3:39:19 PM

+6 Boost

In Hong Kong Tesla sales fell to nearly zero after tax incentives ended.

MDarringer - 7/12/2018 3:59:22 PM

+3 Boost

Audi is about to laugh all the way to the bank.

MrEE - 7/12/2018 7:43:04 PM

+2 Boost

Watch Trump exempt the non-US built vehicles from this program.

SanJoseDriver - 7/24/2018 11:29:54 AM

+1 Boost

Sarcastic right? Let's subsidize foreign EVs but not Ford, GM, and Tesla?

SanJoseDriver - 7/24/2018 11:31:20 AM

+1 Boost

I got it backwards, yeah that actually would not be a good idea to just extend subsidies for vehicles mostly built in the US.

skytop - 7/13/2018 2:15:16 AM

+2 Boost

Was at a local Chevrolet dealer and test drove the Volt. Not very comfortable and it is a rediculous 'foot rest' box for the left foot that is about 5" tall. It is uncomfortable to lift your foot up on the box. Also, the space between the box and the brake pedal is too narrow. My foot kept getting trapped under the brake pedal. Truly, the stupidly designed car.
Oh by the way, the dealer wanted $$39,999. for the Volt. Ha ha ha

MDarringer - 7/13/2018 8:38:50 AM

-2 Boost

Clearly you have not checked the Clarity's EV range. EIGHTY-NINE MILES is its range.