All New Tesla Model 3s Now Qualify for the Full $7500 Tax Credit

In a surprise turn of events, Tesla’s cheapest Model 3 now qualifies for the full $7500 federal EV tax credit, making it the lowest price we’ve seen yet. Now might be the perfect time if you’re in the market for a new EV.

Last summer, we said that the Tesla Model 3 wasn’t affordable anymore. However, following a slew of discounts, price drops, and now qualifying for the entire tax incentive, prospective buyers could get a brand new Model 3 for under $30,000 by combining federal and state tax breaks.

Over the weekend, Tesla updated both its incentives webpage and the Model 3 order page, confirming that all models now qualify for the full $7,500 discount, and that includes the cheapest rear-wheel drive model. Previously, only select trims got the discount.

While the new EV tax credit is a bit of a confusing mess, updated guidelines on April 18th changed how and what vehicles qualify for the federal tax credit depending on where the battery materials are sourced and if manufacturing occurs on U.S. soil. Instantly, a lot of cars were kicked off the list.

Vehicles like Tesla’s most affordable Model 3 only qualified for $3,750. But now, with this update, every Model 3 can get a full discount. With these changes, the Model 3 now starts at $32,740 (with incentives), and depending on the state, some people can get one for under $30k.

However, it’s important to remember that the federal EV tax break also has individual income limits, so make sure you qualify.

via Engadget