US tax credit for electric vehicles slowly slipping away for Tesla buyers
Southfield — The clock is ticking for Tesla customers looking for incentives on their purchase. The $7,500 US federal tax credit for electric vehicles (EVs) is set to start phasing out for the Model S, Model X, and Model 3 after December 31, according to the company’s website. The California-based car maker is the first to trigger the reduced incentive in the US. While tax credits have helped boost EV demand in the US, they remain only 1.1% of the market. The federal government support was designed to decline once manufacturers reach higher production levels and reduce their costs. Two quarters after a company reaches 200,000 sales in the US, the incentive is cut in half to $3,750. Two quarters later, the credit amount is reduced by half again, and it’s eliminated half a year later. A Tesla spokesperson confirmed that the company delivered its 200,000th vehicle in the US this month, so the full $7,500 tax credit will remain in place until December 31. After that, the incentive start...
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