No matter what brand you choose, you can now receive the maximum $7,500 tax credit if you purchase a Tesla Model 3 in the US.
The rear-wheel drive Model 3, as well as its long-range and performance counterparts, now qualify for the full federal tax credit for EVs, according to an update on Tesla’s website.
Tesla Model 3 Price Drops
The same amount of savings applies whether you choose the performance, long-range, or all-wheel drive Model Y.
In order to comply with the provisions of the Inflation Reduction Act, which the president signed last year, the US government released a revised set of guidelines in March for which electric vehicles are eligible for the federal $7,500 EV tax credit.
According to the new regulations, which became effective on April 18th, vehicles using battery components that are built or assembled in the US to a minimum of 50% are eligible for a $3,750 tax credit.
If their manufacturer purchases at least 40% of their essential minerals from the US or its free trade partners—which exclude China—they will only be eligible for the entire $7,500 credit.
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Boosting Affordability for Buyers
When the adjustment was put into effect, many EVs were removed from the list of vehicles eligible for credits, although some of them were later reinstated back.
Due to the new regulations, you could only deduct $3,750 from your taxes for Tesla’s rear-wheel drive, long-range Model 3, but that’s no longer the case.
It’s unclear whether Tesla changed the batteries in the cars or found new suppliers to make sure that its newest Model 3 deliveries adhere to the new regulations.
But if the state offers its own incentives for EVs, you could be able to get the regular version of the car for even less than that in some areas.
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