When times are tight, every penny counts. That goes for money back on a tax return too. If you purchased a Tesla, or another kind of electric vehicle, you may be eligible for over $7,000 in tax credits.
In a move to incentivize the use of fuel-efficient cars, the government has written into the tax code a money-back perk for those who opt to buy electric and fuel cell vehicles. Tesla, a big name in the industry, has a number of models that qualify for this credit.
Here’s how much money is up for grabs with 2023’s Tesla Tax Credit, and all the requirements that must be met to get it.
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Do you get a tax credit for buying a Tesla?
Yes. The government allows for various tax credits for the purchase of plug-in electric vehicles (EV) or fuel cell vehicles (FCV).
Tesla, arguably the most famed EV in the game, is on that list.
The amount of tax credits you may qualify for depends on when you bought the Tesla.
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Tesla Tax Credit 2023 income limit
The Internal Revenue Service allows for a clean vehicle tax credit of up to $7,500 for 2023. Tesla has several qualifying models including:
Tesla Model 3 Rear Wheel Drive
Tesla Model 3 Long Range
Tesla Model Y All-Wheel Drive – 7 seat variant (3-rows)
Tesla Model Y Long Range – 7 seat variant (3-rows)
Tesla Model Y Performance – 7 seat variant (3-rows)
Tesla Model Y All-Wheel Drive – 5 seat variant (2-rows)
Tesla Model Y Long Range – 5 seat variant (2-rows)
Tesla Model Y Performance – 5 seat variant (2-rows)
For the car to qualify for this specific credit, the vehicle must have been bought on or after Jan. 1, 2023, and manufactured in North America. Additionally, the manufacturer suggested retail price (MSRP) cannot exceed $80,000 for vans, sport utility vehicles and pickup trucks, and $55,000 for other vehicles.
There are also income requirements associated with the credit.
Filers must not have a modified adjusted gross income (AGI) greater than:
$300,000 for married couples filing jointly
$225,000 for heads of households
$150,000 for all other filers
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EV Tax Credit 2022 and prior
If you purchased a qualified plug-in electric vehicle (EV) between 2010 and 2022, you may also be eligible for a tax credit of up to $7,500.
There is an extra requirement for EVs purchased after August 16, 2022 but before 2023. These cars must have undergone final assembly in North America. You can determine this by looking at your car’s vehicle identification number (VIN) and cross-referencing it with the U.S. Department of Energy’s database.
For Tesla specifically, models are being phased out and vehicles purchased after Jan. 1, 2020, are not eligible for a credit. This chart indicates which date ranges might still guarantee you some money back.
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This article originally appeared on USA TODAY: IRS EV tax credit 2023: What to know about the new rules