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October 15 is the deadline to take advantage of Tesla's $7,500 vehicle tax incentive

By Polycount
Oct 12, 2018
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  1. As we reported back in July, Tesla's near-iconic $7,500 electric vehicle tax incentive will soon be on its way out. The incentive is set to be halved, halved again, and then halted entirely due to the company recently surpassing 200,000 vehicles sold (the upper limit for federal tax incentives to stick around).

    Now, we have more details regarding exactly when we can expect the full tax incentive to depart. As first spotted by Electrek, Tesla has added a notice to the store page for its vehicles warning customers that "All orders placed by October 15, 2018 will be delivered by the end of the year and eligible for the full $7,500 Federal Tax Credit."

    Though the full tax credit will most likely technically exist for orders placed past October 15, Tesla is clearly trying to avoid backlash by warning customers ahead of time that cars ordered after that date may not be delivered in time to qualify for the full incentive.

    If you've been saving up for a Tesla vehicle but you still can't quite afford one, you aren't completely out of luck if you delay your order beyond October 15. Once 2018 ends and the first half of 2019 begins, the tax credit will still exist. However, as mentioned before, it will be halved twice during 2019. First, it will be cut to $3,750 during Q1 and Q2 2019, and then it will be slashed again to $1,875 during Q3 and Q4. Beginning in 2020, the credit will be pulled outright.

    Image courtesy Electrek

    Permalink to story.

  2. Uncle Al

    Uncle Al TS Evangelist Posts: 5,139   +3,561

    While it is a luxury vehicle, elimination of the tax break sends the wrong signal to the buying public and in light of so many of the automakers moving toward electric vehicles, the government would wise to continue to encourage participation through more tax breaks rather than less. As evidence mounts against the effects of burning fossil fuels this is truly a "no brainier" that all will benefit from. Ignoring it further will be a mistake that the entire inhabitants of this planet will suffer from. You don't have to be a tree huger to apply simple common sense .....
  3. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 3,152   +1,411

    All true in theory, but in practice this tax credit has gone to help decrease the cost of a Tesla from like $90k to $82.5k. People rich enough to buy one would probably be buying one anyway.

    If this credit was helping people choose between a $35k electric car and a $26k gasoline car, then it's actually helping get us off fossil fuels. But as it stands it's just a tax cut for the rich.
    picka likes this.

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