TESLA Tax Credit Explained and (possibly) Extended??

It’s good news/bad news. The fact that Tesla’s depreciating tax credit is about to expire in sixteen days (on December 31, 2019) is good news because it means that Tesla has sold over the threshold 200,000 vehicles, which started the depreciating schedule. Those who took delivery on their Tesla before the end of 2018 got a $7,500 tax credit. 2019 purchasers get less – $3,750 if you took delivery before June 30, 2019 and $1,875 if your Model 3 arrived after that but before year end. Now, in some cases Tesla has adjusted the price somewhat for those with the lower tax credit but, as planned, 2020 will have zero Tesla Tax credit. This is the boom of doom that TSLAQ has been crowing about as the silver bullet that will sink Tesla once and for all.

As if the tax credit was the only thing that caused over 400,000 Teslas to fly off of show room floors.

But there is a chance (slim maybe, but better than none) that the EV tax credit threshold could be increased from 200,000 to 600,000. This would increase the credit for new Tesla owners in 2019 and beyond. An extension will level the playing field between Tesla, who broke EV ground, and the other manufacturers who waited until awareness was raised and are just now entering the EV market. The Driving America Forward Act–currently introduced legislation–includes this extension. An extension that would be beneficial to the EV movement in general and not just fancy Tesla owners. If you’re in favor, a call to your representative stating that you are watching and support this bill could help.

For a full description of the EV Tax Credit and where it stands, read here. Teslarati has some good information on the possible extension of the tax credit, as well.

And…because the issue of why tax dollars should be spent subsidizing EVs gets thrown up to us by ICE-Driving friends…if you’d like some facts to counter those arguments, here’s a look at Government Subsidies of Fossil Fuels.