Great news for Tesla enthusiasts and potential buyers! As of today, the 2024 Tesla Model 3 Long Range has officially become eligible for the $7,500 federal tax credit. This significant update makes the Model 3 Long Range an even more attractive option for those looking to invest in a high-performance electric vehicle.
Eligibility Details
The news was first spotted earlier this week on the official IRS website, signaling a major development for the Tesla community. The inclusion of the Model 3 Long Range in the list of vehicles eligible for the full federal tax credit comes after recent updates to the rules surrounding electric vehicle incentives. Specifically, the credit now requires that 50% of battery minerals come from North America and that 60% of battery components be assembled in North America. These requirements are why the standard Rear-Wheel Drive Model 3 remains ineligible for the tax credit, as it uses an LFP battery pack sourced from China.
Impact on Buyers
The $7,500 federal tax credit is a substantial benefit for buyers, as it effectively lowers the cost of the vehicle. This credit is a point-of-sale incentive starting in 2024, meaning buyers do not have to wait until tax season to take advantage of the savings. The eligibility of the Model 3 Long Range for this credit follows a period of uncertainty, as changes in the battery sourcing rules had previously disqualified some Tesla models from the full incentive.
Background and Market Reactions
The requalification of the Model 3 Long Range for the tax credit is a result of Tesla’s efforts to adapt to the new requirements. Initially, only the Model 3 Performance and certain Model Y and Model X variants were confirmed to retain the full tax credit. This change likely involved significant adjustments in Tesla’s battery supply chain to meet the new criteria, a move that should pay off by making the Model 3 Long Range more accessible to consumers.
With this development, Tesla continues strengthening its position in the electric vehicle market, offering more affordable options catering to a broader range of buyers. The 2024 Model 3 Long Range, now with the added benefit of the $7,500 tax credit, is positioned to become a popular choice for those looking to switch to an EV.
