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:
Important note for US Tesla buyers: Federal tax credit drops by $3750 in 3 weeks.
To be on the cancellation waitlist for delivery this year or if you want a display car, order at https://t.co/46TXqRJ3C1 or visit our stores. Full refund if Tesla can’t deliver your car this year.
— Elon Musk (@elonmusk) December 11, 2018
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.