Understanding Adjusted Gross Income (AGI) Limitations
Your eligibility for the tax credit is also determined by your Adjusted Gross Income (AGI). Here are the AGI limitations set by the federal government:- Married Couples Filing Jointly: An AGI up to $300,000.
- Heads of Households: An AGI up to $225,000.
- All Other Filers: An AGI up to $150,000.
Price Caps on Tesla Models
The federal government has set price caps on the vehicle’s Manufacturer’s Suggested Retail Price (MSRP) at the time of delivery. This price includes any optional equipment physically attached to the vehicle upon delivery but excludes software features, accessories, taxes, and fees. Currently, the following Tesla models qualify for federal tax credits, provided buyers meet all other federal requirements, including the aforementioned AGI limitations:- Model 3: Capped at $55,000
- Model X: Capped at $80,000
- Model Y: Capped at $80,000
Tax Credit Breakdown by Tesla Model
For those wondering about the tax credit amount for specific Tesla models, here’s a breakdown:- Model 3 Rear-Wheel Drive: $7,500
- Model 3 Long Range: $7,500
- Model 3 Performance: $7,500
- Model X Dual Motor: $7,500
- Model Y All-Wheel Drive: $7,500
- Model Y Long Range: $7,500
- Model Y Performance: $7,500
Qualified new Tesla buyers who meet all federal requirements are eligible for a tax credit up to $7,500.
Yes, reductions to the current federal tax credit are expected after December 31.
Your AGI determines your eligibility. There are specific AGI limitations set by the federal government based on your filing status.
The AGI limit is $300,000 for married couples filing jointly.
The AGI limit for all other filers is $150,000
Yes, the vehicle’s MSRP at the time of delivery must not exceed specific caps set by the federal government.
The Tesla Model 3, Model X, and Model Y qualify, provided they meet the set price caps and other federal requirements.
Yes, the price caps set by the federal government are subject to change.
The tax credit for the Model 3 Rear-Wheel Drive is $7,500.