Buying a Tesla in 2019 - how the U.S. Federal Tax Credit works
Back in July 2018, Tesla sold it's 200,000th electric vehicle in the United States. It was the first manufacturer to do so. This began the process of phasing out the U.S Federal Tax Credit for buyers of Teslas. It didn't immediately end - in fact, everybody who had a Tesla delivered before the first day of 2019 is still going to receive the full $7500 tax credit for their purchase (assuming they otherwise qualify). But it's 2019 now. What does this mean for people who want to purchase a Tesla now?
January-June 2019 purchases qualify for $3750
If you purchase a Tesla between January and June 2019 (inclusive), you will qualify for a $3750 federal tax credit. You'll qualify for this credit for each and every Tesla you purchase during this time. It doesn't matter how many vehicles Tesla sells either - all that matters is that you accept delivery of your vehicle within these dates.July-December 2019 purchases qualify for $1875
If you purchase a Tesla between July and December 2019 (inclusive), you will qualify for a $1875 federal tax credit. You'll qualify for this credit for each and every Tesla you purchase during this time. It doesn't matter how many vehicles Tesla sells either - all that matters is that you accept delivery of your vehicle within these dates.No Federal Tax Credit in 2020 and Beyond
The Federal Tax Credit will be completely eliminated for Tesla purchases beyond 2020.
Can I Use the Entire Tax Credit?
Note that this is not a rebate on the purchase price of the car. This is a federal income tax credit. The credit can only be used during the tax year in which the car is purchased. If you cannot make use of the entire amount of the credit, then you simply lose the credit.
In order to qualify for the entire credit, your tax liability needs to be at least as much as the total credit. This is different than the remaining amount of taxes you owe after completing your 1040. This is the total amount of taxes that you are required to pay during the entire calendar year. If you're still confused on this point, then do a little more research to make sure you understand before committing to a purchase.
Don't Forget your Free Supercharging
If you decide to go ahead an purchase a Tesla, you may use my referral code to earn yourself 1000 miles of free supercharging. You can either mention code brad26669 to a Tesla sales agent, or click this link to begin the online ordering process:
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