topic Re: Tesla Model Y EV credit in Deductions & credits

Tesla Model Y EV credit

meenasrini — Mon, 23 Feb 2026 13:14:43 GMT

Tesla model Y bought Dec 26, 2021, Taxes and fees paid in Jan 2022 and placed in service Jan 2022. Does this qualify for the new EV rebate and claimed in the 2022 tax return?

Re: Tesla Model Y EV credit

JohnW152 — Mon, 06 Feb 2023 16:48:06 GMT

The Tesla Model Y isn't among vehicles that are eligible for a credit on your federal tax return.

Please see the IRS' Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2022 and Before page for more information.

If your vehicle were qualified, you would be able to claim the credit in the tax year in which it was placed into service.

So, based on your fact scenario, you'd claim the credit on your 2022 tax return, if your vehicle were qualified.

See Certification and Other Requirements in the Instructions for Form 8936 (01/2022).

Re: Tesla Model Y EV credit

meenasrini — Mon, 06 Feb 2023 17:24:16 GMT

Thanks much, John. So even after the rule revision of including the Model Y's upto 80K for the 2022-2023 model, I would not qualify, I presume?

Re: Tesla Model Y EV credit

Vanessa A — Mon, 06 Feb 2023 20:31:57 GMT

The rules were just updated a few days ago. The IRS website has not been updated yet to include the Model Y or any of the other changes announced by the Dept. of Treasury as of today. However, digging into the Treasury Departments statement that was issued, it does appear that if you purchased the Model Y for less than $80,000, after January 1, 2023 that you would be eligible for the credit, but not until the 2023 tax year.

"Customers who have purchased and placed in service vehicles since January 1, 2023, that qualify under the EPA Fuel Economy Labeling classification standard announced today and who satisfy the other clean vehicle tax credit requirements can claim the credit, including customers with vehicles that did not qualify under the prior EPA CAFE standard." Treasury Update 2/3/2023

So, unfortunately, tax payers who purchased the Tesla Model Y and other similar vehicles in 2022, are not eligible for the credit.

(Edited 2/6/2023 @ 12:31PM PST)

@meenasrini

Re: Tesla Model Y EV credit

meenasrini — Mon, 06 Feb 2023 18:04:39 GMT

Thanks much, Vanessa. Greatly appreciate it.

Re: Tesla Model Y EV credit

Opus 17 — Mon, 06 Feb 2023 18:40:02 GMT

As far as I can tell, the new rules only apply to vehicles placed in service in 2023. The old rules apply for 2022 and the model Y does not qualify.

https://www.cbsnews.com/boston/news/tesla-model-y-qualifies-for-7500-ev-tax-credit-gm-ford-vw-irs-rules/

"Last year, Teslas weren't eligible for a tax break under a previous federal credit program because the company had reached a limit of 200,000 vehicles sold. But the tax credits through the IRA don't have such a limit, which means more buyers may be able to lower the purchase price of a Tesla this year through the tax credit. "

Re: Tesla Model Y EV credit

Opus 17 — Mon, 06 Feb 2023 18:41:40 GMT

Here's another article.

https://finance.yahoo.com/news/inflation-reduction-act-carves-ev-100010333.html?guccounter=1

Re: Tesla Model Y EV credit

meenasrini — Mon, 06 Feb 2023 21:59:10 GMT

Thank you very much!

Re: Tesla Model Y EV credit

bluetaxbird — Wed, 04 Oct 2023 02:48:36 GMT

Hello guys, I just wanted to double check before I let this go completely.

I reversed the a Tesla Model Y, which shown on agreement as "Accepted by Customer on 06/12/2019"

But didn't put in services until 03/21/2022, which is the date shown on agreement as "Date of Agreement"

With the change in tax law, do I know qualify for the EV credit?

Thank you in advance.

😉

Re: Tesla Model Y EV credit

NCperson — Thu, 05 Oct 2023 12:41:08 GMT

@bluetaxbird - since your vehicle was placed in service prior to the passage of the Inflation Reduction Act, your tax credit is based on the "old" law.

you have not provided enough detail to provide any feedback on whether you qualify for an EV Tax Credit. these are the vehicles that qualify:

https://www.irs.gov/credits-deductions/manufacturers-and-models-for-new-qualified-clean-vehicles-purchased-in-2022-and-before

Re: Tesla Model Y EV credit

bluetaxbird — Fri, 06 Oct 2023 19:00:58 GMT

I have Tesla Model Y. Any other detail you need? Thanks

Re: Tesla Model Y EV credit

NCperson — Fri, 06 Oct 2023 19:16:17 GMT

@bluetaxbird a Tesla placed in service in 2022 is not eligible for the EV tax credits.

review the link I provided in my last post. it is the IRS website stating that 2022 Teslas are not eligible vehicles.

Re: Tesla Model Y EV credit

bluetaxbird — Fri, 06 Oct 2023 19:32:08 GMT

but thank you!

Re: Tesla Model Y EV credit

LKnight13 — Sat, 30 Dec 2023 13:31:27 GMT

Model Y now qualifies. Under the SUV's under $80k. But it's confusing because the date range on this article includes 2022. So it only appears that 2022 is the gap year that is causing everyone a headache.

https://www.cbsnews.com/boston/news/tesla-model-y-qualifies-for-7500-ev-tax-credit-gm-ford-vw-irs-rules/

Re: Tesla Model Y EV credit

spcorbett07 — Sat, 04 May 2024 01:49:10 GMT

If Tesla Model Y was not included in the EV Tax credit in the year 2021 why did TurboTax not state anything when completing the tax return? TurboTax only asked if a New Electric Vehicle was purchased. It did not state anything regarding Tesla or the specific model not being qualified. That is a faulty system within TurboTax and does not help their customers.

Re: Tesla Model Y EV credit

JotikaT2 — Tue, 07 May 2024 18:54:08 GMT

Model Y was not included as eligible for the EV tax credit in 2021. See this link for more details on the specific Tesla vehicles that were eligible for the tax credit.

When going through the interview section when preparing your 2021 tax return, TurboTax would have asked you questions and based upon your answers, would have generated the credit and requested any additional information needed to claim the credit if the information you had entered qualified for the credit.

@spcorbett07

Re: Tesla Model Y EV credit

dwestraad — Fri, 17 May 2024 16:17:22 GMT

I have this exact question. Just got audited and now I owe $10,300 ($7,500 credit, $1,500 penalty, and interst). This was an error on TurboTax, why am I responsible for the system being set up incorrectly.

Re: Tesla Model Y EV credit

KristinaK — Tue, 21 May 2024 16:14:39 GMT

TurboTax has an Accuracy Calculation Guarantee. If you believe it was an incorrect calculation by TurboTax, you can submit a claim. Please see this article for more details.