Tesla sold over 200,000 cars in the U.S. last year, so beginning January 1, 2019, the law reduces the federal tax credit to $3,750. The previous maximum amount was $7,500.
Tesla cars purchased between January 1st and June 30, 2019, are eligible for a maximum tax credit of $3,750. The maximum tax credit for Tesla cars purchased after June 30th and before January 1, 2020, is $1,875. Cars acquired after December 31, 2019, are not eligible for the credit.
Date of purchase is important which is the day the owner takes delivery of the car. And the car must be purchased; leased cars do not qualify for the credit.
We have experience with reporting the credit on federal tax returns. Call us at (323) 285-9880 if you have any questions.
Disclaimer: Tax laws are complicated, and your taxes are unique to you. A law favorable to you may not be beneficial to the next person because the facts and circumstances are different. Our emails are very broad and do not provide specific tax advice to you for which you can use for tax planning purposes. Therefore, we highly recommend you contact us before taking any action concerning the content of this email.