Tesla Model 3 RWD and Long Range will only get half the US federal tax credit from January 1

Vlad, 04 December 2023

Tesla's Model 3 in the RWD and Long Range trims is currently eligible for the full $7,500 US federal tax credit, like many other Tesla models, but that will change from January 1, 2024. From that day onwards, the RWD and Long Range Model 3 buyers will only receive a $3,750 tax credit if they qualify.

Thus, Tesla is obviously urging anyone who wants one of these and wants to take advantage of the full $7,500 tax credit to order one ASAP since delivery has to happen by December 31 to qualify, otherwise the credit will be halved. The good news is that if you do order ASAP and take delivery by the end of the year, you'll get six free months of Supercharging.

Tesla Model 3 RWD and Long Range will only get half the US federal tax credit from January 1

The tax credit change will occur because of the updated Inflation Reduction Act guidance the US government announced last week. Tesla has confirmed the information on its website, for all to see. Here's Tesla's full announcement:

Customers who take delivery of a qualified new Tesla and meet all federal requirements are eligible for a tax credit up to $7,500. Tax credit will reduce to $3,750 for Model 3 Rear-Wheel Drive and Model 3 Long Range on Jan 1, 2024. Take delivery by Dec 31 for full tax credit. Only for eligible cash or loan purchases.

The Model 3 RWD and LR are most likely being penalized because their battery packs contain Chinese components, although Tesla itself hasn't explained why it's happening.


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Reader comments

  • Anonymous

Tesla confirmed the tax credit changes on their website, so there's no hiding from this news.



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