Which Teslas Qualify For The EV Tax Credit In 2024?

There’s no getting around it: Electric vehicles are still more expensive, by and large, than conventional gas-powered ones. The good news is that the federal tax credit for EV buyers can significantly slash the cost of going electric. 

The only roadblock is knowing which vehicles are actually eligible for the EV tax credit. The policy has changed a lot in recent years, with vehicles dropping onto and off of the list at various times, making it more confusing than ever to navigate. Given that Elon Musk still makes the most popular EVs in the country (and the world), shoppers should know that several Teslas qualify for the EV tax credit in 2024—but not all of them. 

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The 2024 EV tax credit

The longstanding $7,500 tax credit for EV purchases has changed a lot since it got a revamp by the Inflation Reduction Act of 2022. Now fewer cars qualify thanks to stricter rules governing where vehicles can be made (in North America, only) and where their batteries come from (not China, basically). But now it can be redeemed at the time of purchase instead of at tax time.

Buyers of some Model X, Model 3 and Model Y variants can all get some money back, but those who want a Cybertruck or Model S are out of luck. Both the pickup and sedan are knocked out of contention for being too expensive. Price caps are $55,000 for sedans and $80,000 for trucks and SUVs. 

The credit—which actually can now be redeemed up front at the time of purchase, making it more of a rebate—is worth up to $7,500. Some EVs only qualify for half of that amount, but anybody receiving a tax credit for a Tesla will get the full $7,500. 

Which Teslas are eligible for the EV tax credit in 2024?

Here's every currently available Tesla that you can get a tax credit for, according to the automaker, along with how much it costs before additional fees. For other makes, check out our guide to every hybrid and EV that qualifies for the tax credit.

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Notably absent is the most affordable Tesla, the Model 3 Rear-Wheel Drive. The $38,990 model was booted from eligibility after new rules governing battery-component sourcing went into effect this year. However, the new Model 3 Long Range Rear-Wheel Drive—a range monster rated to go 363 miles on a full charge—ends up costing slightly less than the Rear-Wheel Drive once the credit is applied. 

Also, the Cybertruck pickup costs too much right now to qualify, but it could be added if and when lower-priced versions hit the scene. Tesla says a $60,990, rear-wheel drive model will go into production eventually. 

A couple of other things to note: The EV tax credit also has income limits of $300,000 for married couples filing jointly, $225,000 for heads of households and $150,000 for other filers. And any leased EV qualifies for the $7,500 credit regardless of who drives it off the lot or how much money they make.  

We'll be sure to update this guide as the list of eligible Teslas changes. 

Contact the author: tim.levin@insideevs.com

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