Tesla Tax Credit Coming To End On December 31st, Act Fast To Save $1,875

If you’re looking for a last minute Christmas gift for yourself, you might want to get a Tesla as their vehicles will no longer be eligible for a US government tax credit beginning next year.

As we have previously reported, Tesla sold their 200,000th electric vehicle in 2018 and this triggered an automatic reduction in future tax credits.  The first cut went into effect in January and saw the $7,500 tax credit slashed to $3,750.  That figure was reduced to $1,875 in July and it’s now set to expire at the end of the year.

As a result, customers who have been thinking about a buying a Tesla should act fast as they can save $1,875 as long as they take delivery of a Model 3, Model S or Model X by December 31^st.  That’s a decent amount of savings and it effectively lowers the base price of the Model 3 Standard Range Plus to $38,115.

Also Read: Tesla Hits Cut Off For Full $7,500 Government Rebate

To help as many people as possible get the expiring tax credit, Tesla has updated their inventory to allow customers to see which vehicles are available for immediate delivery.  Inventory will vary by location, but a quick check shows there are a handful of vehicles available near southeast Michigan including four Model 3s, six Model S’ and ten Model Xs.  That’s not a huge selection, so buyers can’t be too picky if they want the tax credit.

Automakers have been pushing the government to extend the tax credits, but even bipartisan proposals have meet strong resistance from President Trump.  White House officials have reportedly gone as far as warning legislators that including an expansion of EV tax credits in legislation could result in bills getting vetoed.

While the tax credit was conceived as a way to make eco-friendly vehicles more affordable, they’ve been labeled as a welfare program for the rich.  A report from the Treasury Inspector General for Tax Administration also found the program has been poorly managed as a review of 239,422 claims found 16,510 taxpayers received $73.8 (£56.6 / €66.6) million in potentially erroneous credits.