• 253 days Will The ECB Continue To Hike Rates?
  • 253 days Forbes: Aramco Remains Largest Company In The Middle East
  • 255 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 655 days Could Crypto Overtake Traditional Investment?
  • 659 days Americans Still Quitting Jobs At Record Pace
  • 661 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 664 days Is The Dollar Too Strong?
  • 665 days Big Tech Disappoints Investors on Earnings Calls
  • 666 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 667 days China Is Quietly Trying To Distance Itself From Russia
  • 668 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 672 days Crypto Investors Won Big In 2021
  • 672 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 673 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 675 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 675 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 679 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 679 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 679 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 682 days Are NFTs About To Take Over Gaming?
UK Regulators Hit Facebook With £500,000 Fine

UK Regulators Hit Facebook With £500,000 Fine

Citing non-transparency and failure to…

France Could Lose Billions In EU Trade Route Redirection

France Could Lose Billions In EU Trade Route Redirection

With the Brexit debacle beginning…

This E-Commerce Giant Turned Into A Lobbying Powerhouse

This E-Commerce Giant Turned Into A Lobbying Powerhouse

The world’s largest online marketplace…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. Markets
  3. Regulation

Tesla’s U.S. Tax Credit Coming To An End

Tesla

Tesla has delivered 200,000 vehicles in the United States, exceeding the threshold above which federal tax credits for EVs start to phase out, a spokesperson for Tesla said on Thursday—and its website had its incentives schedule updated.

Under U.S. federal legislation, buyers of EVs enjoy tax incentives of up to $7,500 per vehicle for a new purchase for use in the United States. This tax credit is available until 200,000 qualified EVs have been sold in the United States by each manufacturer, at which point the credit begins to phase out for said manufacturer.

When an automaker reaches 200,000 EV deliveries, the tax credits begin to phase out after one full quarter passes following the quarter in which the car manufacturer has hit the 200,000-delivery mark.

For Tesla, speculation in recent weeks about whether Elon Musk’s EV maker has or hasn’t reached that figure was nearly as ripe as whether it would be able to reach the 5,000-per-week Model 3 production target.

At the end of June, Tesla, as well as GM, was said to be very close to hitting the 200,000 U.S. delivery cap.  

According to Bloomberg, Tesla may have delivered more vehicles to customers outside the U.S. in Q2 in order to avoid hitting the 200,000 U.S. delivery cap in that quarter and hit the cap in Q3. Thus, it would have caused the tax credits start to phase out one full quarter after Q3, so as of January 1, 2019. By hitting the cap on or after July 1, Tesla would have one additional quarter with full tax credits that could be worth a combined more than $400 million to Tesla buyers, Bloomberg has estimated. 

Tesla’s Electric Vehicle Incentives page shows that the federal tax credit of $7,500 is valid for vehicles delivered on or before December 31, 2018. The tax credits then start to phase out—halved to $3,750 between January 1 and June 30, 2019, and then again halved to $1,875 from July 1 to December 31, 2019, until they stop.

By Tsvetana Paraskova for Safehaven.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment