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Mike9241 · ‎October 16, 2023

this is from a Forbes article poste June 2023

The complete Tesla Model 3 and Y lineup now qualifies for a full $7,500 federal tax credit for clean cars. On Tuesday, the U.S. EPA officially added all Tesla Model 3 and Model Y variants to its list of tax-credit eligible vehicles.

Previously, only certain versions of the popular EVs qualified for the full subsidy, while others received partial credit. Now offered: the Model 3 Long Range AWD and Standard Range Rear-Wheel Drive for the $7,500 credit instead of the $3,750 partial rate. Tesla had marked the change for all six of the models on its website Friday ahead of the EPA update.

The full credit marks down the entry level RWD Model 3 from $40,240 (plus a $1,390 destination fee) down to $32,740. The car has a 272-mile range. That puts it in line with more budget-friendly gas-powered midsize cars, like the Honda Accord.

In 2024, the IRS plans to expand access to the tax benefit by allowing consumers to choose between claiming a nonrefundable credit or transferring the credit to the dealer to lower the price of the car by the credit amount at the point of sale.

This new proposal would make it easier for all eligible consumers — not just those with a high tax liability — to take advantage of credit. For those who transfer the credit, it would also do away with having to wait until the following year to claim the benefit on their tax returns.