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IRS Announces Tesla Plug-In Electric Vehicle Credit is Now Reduced

The IRS recently announced that Tesla has sold more than 200,000 vehicles that are eligible for the plug-in electric drive motor vehicle credit. What does this mean? This essentially means that the amount of the available tax credit is going to be reduced for vehicles being purchased Jan 1, 2019 or after.

If you purchased your qualifying vehicle before Jan 1, 2019, you may receive a credit up to $7,500. For vehicles purchased between Jan 1, 2019 – June 30, 2019, the credit has been reduced to $3,750. Then starting July 1, 2019, the credit will be dropped to $1,875 for the rest of 2019. After Dec 31, 2019, there will be no credit at all for the purchase of the Tesla vehicle.

Please consult your tax advisor before purchasing to make sure you are eligible for the tax credit.

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