For some time now, the federal government has used generous income tax credits to encourage car buyers to purchase an EV. And though this wasn’t the exclusive reason behind anyone’s decision to purchase a Tesla, it’s long been a nice perk for Tesla buyers looking to offset a bit of their purchase price.
The ability for Tesla buyers to take advantage of this tax credit, however, is about to come to an end. Consequently, Tesla has been sending out reminders to prospective Tesla buyers noting that the tax credit for new Tesla purchases is poised to expire in less than 5 weeks.
The email, obtained by InsideEVs, reads as follows:
In less than 5 weeks, the federal tax credit will be expiring and purchases of a new Model S, Model X or Model 3 will no longer be eligible for this incentive. Order online in less than three minutes and experience the ease, convenience and safety of an all-electric design.
Place your order and take delivery by December 31, 2019 to be eligible for the federal tax credit. Orders placed near the end of the year are not guaranteed to be delivered by December 31.
Any purchase of a Model S or Model X will also come with free Supercharging.
As a quick refresher, the tax credit system for EV purchases is structured as follows: Once any specific car manufacturer delivers 200,000 EVs in the United States, the federal income tax credit for that manufacturer drops from $7,500 to $3,750 for a period of six months. Once that six-month period comes to an end, the tax credit drops down to $1,875 for an additional six months.
Put simply, if you purchase a Tesla and receive it before the end of the year, you’ll be able to take advantage of the aforementioned $1,875 tax credit.