A standard-range Tesla Model 3 can cost less than half its MSRP in certain California districts. The base rear-wheel-drive Model 3 with 272 miles of EPA-estimated range, and 0-60 miles per hour time of 5.8 seconds, starts at $40,240.
Factor in California’s two possible tax credits, along with the federal tax credit, and that Tesla Model 3 price can plummet to $19,830 (as of June 5, 2023). Sounds generous, right? Well, first you have to qualify for the following programs.
The base Model 3 can start at $37,830 with referral links and inventory discounts via the WaitingForTesla website. With the $7,500 federal tax credit that select electric cars qualify for, along with another $7,500 from California’s Clean Vehicle Rebate Project (CVRP), the price can drop to $22,830.
Remember that the federal tax credit doesn’t apply to all individuals and car models. The vehicle has to be made in the US, Mexico, or Canada. Additionally, it must meet certain battery requirements, while individuals under pre-determined income brackets may benefit from it, as per the guidelines.
Although to qualify for CVRP, you have to be based in the Golden State or have a business there. You must also meet specific income eligibility requirements. Higher income brackets qualify for a $2,000 rebate, while lower- and middle-income individuals can get an increased rebate of $7,500.
Moreover, San Joaquin Valley residents can obtain an additional $3,000 credit from the local air pollution control district for choosing a zero-emissions vehicle.
With all incentives combined, the Model 3’s effective price can be $19,830 (as of June 5, 2023). These credits aren’t just applicable to the Model 3, but several other EVs, including the Ford Mustang Mach-E, Chevrolet Bolt EV, and Ford F-150 Lightning among many others.
Even if you’re not a San Joaquin Valley resident, the federal tax credit and CVRP might help you save a significant sum on your electric car. Several other US states offer tax credits, including Colorado, which has the most generous tax credit – of $5000 – in the country.
Are you happy with the current set of federal and state incentives for electric vehicles in the US? Leave your thoughts in the comments.