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You don’t have much time left to get a $7,500 tax credit on a Tesla

The $7,500 federal tax credit for a Tesla ends October 15.

You don’t have much time left to get a $7,500 tax credit on a Tesla

[Photo: Jp Valery/Unsplash]

BY Michael Grothaus0 minute read

The company has announced that customers must place their Tesla order by October 15 if they want to take advantage of the government’s $7,500 tax credit. After that date, the tax credit on a Tesla gets cut in half, Reuters reports.

The $7,500 tax credit was meant to spur people into buying more electric vehicles–but only to a point. The GOP tax overhaul of last year limited the $7,500 credit to the first 200,000 vehicles an automaker sold. Once the automaker hit that number of sales, the tax credit for that car brand reduces by 50% every six months until it reduces to zero.

In July, Tesla announced it delivered 200,000 vehicles to customers, meaning it has hit the full tax credit threshold. But the tax law states that the $7,500 tax credit will continue past the 200,000 threshold for any of the automaker’s cars sold in the quarter the threshold is hit. That quarter ends on October 15.

So if you want to save a chunk of change on a Tesla, get your order in before the 15th. A day later and you are looking at a tax credit of only $3,750.

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ABOUT THE AUTHOR

Michael Grothaus is a novelist and author. He has written for Fast Company since 2013, where he's interviewed some of the tech industry’s most prominent leaders and writes about everything from Apple and artificial intelligence to the effects of technology on individuals and society. Michael’s current tech-focused areas of interest include AI, quantum computing, and the ways tech can improve the quality of life for the elderly and individuals with disabilities More


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