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Tesla to offer full refunds for buyers who can’t take advantage of the $7,500 tax credit

Published Dec 11th, 2018 4:15PM EST
Tesla Tax Credits
Image: TierneyMJ/Shutterstock

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For some time now, the purchase of electric vehicles has been incentivized via substantial income tax credits. As currently structured, EV buyers can enjoy a generous $7,500 tax credit when purchasing a car from a manufacturer that has delivered fewer than 200,000 EVs in the United States. Once that 200,000 unit threshold is reached, the tax credit goes down to $3,750 about six months later. The $3,750 credit then remains in effect for a period of six months and goes down to $1,875 for the six months after that.

As it pertains to Tesla, the automaker hit the 200,000 delivery mark this past July, which is to say that the federal tax credit afforded to Tesla buyers is poised to drop down to $3,750 at the end of the month. In light of this, Tesla is offering prospective buyers a chance to cancel their order if Tesla can’t deliver a car to them before 2019.

Taking to Twitter — which appears to be Elon Musk’s preferred mode of communication these days — the Tesla CEO relayed that buyers can opt to be added to a cancellation waitlist wherein they can take receipt of a car if someone with an outstanding order opts to cancel. And should delivery be delayed until 2019, a full refund will be available.

Musk’s tweet can be seen below:

If you’ve been on the fence about purchasing a Tesla, now may be the time to pull the trigger if you want to get in on the full federal tax credit. As alluded to above, any available tax credits for Tesla buyers will run dry by the end of 2019.

Yoni Heisler Contributing Writer

Yoni Heisler has been writing about Apple and the tech industry at large with over 15 years of experience. A life long expert Mac user and Apple expert, his writing has appeared in Edible Apple, Network World, MacLife, Macworld UK, and TUAW.

When not analyzing the latest happenings with Apple, Yoni enjoys catching Improv shows in Chicago, playing soccer, and cultivating new TV show addictions.