If you buy a Tesla Model 3 in the US, you can now get the maximum possible tax credit of $7,500, regardless of which brand you get. Tesla has updated its website to show that the rear-drive Model 3, along with its long-range and performance counterparts, now qualify for the full federal electric vehicle tax credit. You’ll also be able to enjoy the same amount of savings if you purchase the four-wheel-drive, long-range, or performance Model Y.
The U.S. government released a revised set of guidelines for which electric vehicles are eligible for the $7,500 federal electric vehicle tax credit in March to comply with the Cut Inflation Act rules that the president signed last year. Under the new guidelines, which took effect April 18, vehicles using battery components that are 50% manufactured or assembled in the United States qualify for a tax credit of $3,750. They can only get the full $7,500 credit if their manufacturer sources at least 40% of their critical minerals from the United States or its free trade partners, which does not include China.
Many electric vehicles were removed from the list of credit-qualified vehicles when the change was implemented, but some were added back in the days that followed. You could only subtract $3,750 from your taxes for Tesla’s rear-wheel-drive and long-range Model 3 due to the new guidelines, but that’s no longer the case. It’s not entirely clear whether Tesla has modified the cars’ batteries or found new suppliers to ensure its new Model 3 deliveries meet the requirements of the new guidelines. But that means in some places you could get the standard version of the vehicle for just over $30,000 – or maybe even less only if the state has its own advantages for electric vehicles.