Why did my 2023 Tesla Model Y I purchased in December 2022 not qualify for EV tax credit?

Forum|Forum|1 year ago
February 4, 2025
1 reply
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Tesla lowered the MSRP of Model Y and the tax credit become available again in January 2023. I placed my order to be waitlisted for Tesla August 20th 2022 and finally was able to get the car December 2022. When I filed 2022 taxes, I learned "Tesla no longer qualifies for this credit" but I don't understand why.

Vanessa A

Tesla had a short period of time where they reached the quota cap for their vehicles being eligible for the credit, meaning, they had sold too many and the credit was used up for the Tesla. For people who bought the car at just the right (or wrong) time, were not able to claim the credit for Tesla as they had already sold more than 200,000 units. If you would have taken delivery after January 1, 2023 the vehicle would have then been eligible for the credit.

Qualified vehicles

To qualify, a vehicle must:

Have an external charging source
Have a gross vehicle weight rating of less than 14,000 pounds
Be made by a manufacturer that hasn't sold more than 200,000 EVs in the U.S.

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