This means you need to have title in hand with your Tesla by Dec 31st 2018 if you want to save $7500 the following year on your taxes. It only works if you pay Federal tax of $7500 to receive the whole rebate - if your withholding covers you 7500 tax or more, it comes as a refund.
How was my predictive ability? On April 15th 2016 my prediction in this blog was Tesla would be here a quarter year earlier - that the phaseout would begin in Q2 2018. Check it here:
A plan for credits
Not bad for 26 months ago. I've been interested in a careful reading of the rules because it influences my Tesla buy too. My March 2018 bought Tesla Model 3 gets a full $7500 but with my income level I'm probably closer to getting $7200. Good enough for retiree work. A tax filer is eligible for one car buy a year and you have to keep your car one year. No quick resales etc.
My Leaf was at the beginning of the program and got the full rebate. The following year the Think EV also got the full rebate. When my TM3 rebate comes in it will be a total of about $22,000 in incentives to buy electric during this decade - not too bad considering I get to keep some of my tax money and help the environment.
What does this mean for you? If you are buying a Tesla in the US and pay enough taxes to cover:
Buying by Dec 31st 2018 means a $7,500 tax rebate in your pocket in 2019
Buying in 2019 by June 30th 2019 means a $3750 tax rebate in 2020.
Buying in 2019 after June 30th 2019 means a $1875 tax rebate in 2020.
Buying in 2020 means you have a shiny new Tesla - no rebate though.
While some lawmakers are trying to extend the program it would be surprising if the Republican congress did it - but still worth hoping for. It will be interesting to see how this affects sales. At least it gives Tesla 18 months to pump out as many incentive sales as possible.
My Cousin posing with the Tesla charger:
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