With the Inflation Reduction Act becoming law, does that mean I can get a tax credit for buying a Tesla again?

Excellent question. Short answer, maybe.

With the passing of the Inflation Reduction Act, there is now an EV tax credit available again (no more 200,000 car cap, which Tesla blew through years ago), for vehicles delivered starting January 1, 2023. However, there are some other restrictions. The list price of the vehicle has to be less than $80,000 for trucks and $55,000 for anything else, and the buyer’s income has to be less than $150,000 annual for single or $300,000 annual for a household. That means the Model S and Model X are out, but at least some versions of the Model 3 and Y (and potentially Cybertruck) are in with a $7500 tax credit.

There are further restrictions, however, related to where the car is manufactured (no problem for Tesla) and where their parts and minerals and whatnot come from (entire supply chain, from mining to processing), which could be a problem for every EV manufacturer given how much battery materials and/or components come from China which is not a free trade partner with the US. At least, starting in 2024. So this tax credit may no longer be applicable then.

But for 2023, things look promising. There is no way to know if this will cause Tesla to adjust their prices due to this.

More information can be found here; there are many sites purporting to have more information from a quick Google search, which you can do if necessary. Also note that this FAQ does not pretend to offer any tax advice; any specifics need to be answered by a tax professional.

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