On December 4, according to foreign media reports, Tesla has officially announced on its US official website that starting from January 1, 2024, the tax credit for Model 3 rear-wheel drive and long-life versions will be reduced from $7,500 to $3,750.
According to the Inflation Reduction Act, from January 1, 2023, consumers who buy an electric vehicle that meets the standards and pick it up after that time will receive a tax credit of up to $7,500. The new tax credit, which runs through 2032, is designed to spur electric vehicle sales and reduce greenhouse gas emissions.
Previously, only the Model 3 high-performance version was eligible for the full tax benefit, while the Model 3 rear-wheel-drive and long-life versions were only eligible for half the benefit, or $3,750.
However, on June 3 this year, Tesla announced that all Model 3 vehicles can enjoy the full tax incentive of $7,500 in the United States.
In July, however, Tesla issued a somewhat ambiguous warning that the $7,500 tax credit for some of its models was about to be reduced.
A few months later, in October, the company warned again, citing pending federal guidance, that all new Model 3 models are now eligible for a $7,500 federal tax credit. After December 31 of this year, the $7,500 tax deduction will most likely drop to $3,750.
Today, Tesla officially confirmed on its U.S. official website that in 2024, the tax credit for both the rear-wheel drive version and the long-life version of the Model 3 will be reduced to $3,750.
In addition, the company is urging buyers to get their cars by Dec. 31 to guarantee the full $7,500 tax credit.Previously, foreign media said that Tesla plans to launch the new Model 3 Highland in North America in 2024.
Clearing inventory of older Model 3s ahead of the new car's U.S. debut may be why Tesla is urging customers to take advantage of current tax incentives to pick up their cars as soon as possible.
