Dear Tesla, please apply to the federal tax and state point of sale application. I don't want to have to bring more money to the table and have to wait.

Who qualifies
You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.

The credit is available to individuals and their businesses.

To qualify, you must:

Buy it for your own use, not for resale
Use it primarily in the U.S.
In addition, your modified adjusted gross income (AGI) may not exceed:

$300,000 for married couples filing jointly
$225,000 for heads of households
$150,000 for all other filers
You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.

The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.

Credit amount
The amount of the credit depends on when you placed the vehicle in service (took delivery), regardless of purchase date.

For vehicles placed in service January 1 to April 17, 2023:

$2,500 base amount
Plus $417 for a vehicle with at least 7 kilowatt hours of battery capacity
Plus $417 for each kilowatt hour of battery capacity beyond 5 kilowatt hours
Up to $7,500 total
In general, the minimum credit will be $3,751 ($2,500 + 3 times $417), the credit amount for a vehicle with the minimum 7 kilowatt hours of battery capacity.

For vehicles placed in service April 18, 2023 and after:

Vehicles will have to meet all of the same criteria listed above, plus meet new critical mineral and battery component requirements for a credit up to:

$3,750 if the vehicle meets the critical minerals requirement only
$3,750 if the vehicle meets the battery components requirement only
$7,500 if the vehicle meets both
A vehicle that doesn't meet either requirement will not be eligible for a credit.

Qualified vehicles
To qualify, a vehicle must:

Have a battery capacity of at least 7 kilowatt hours
Have a gross vehicle weight rating of less than 14,000 pounds
Be made by a qualified manufacturer.
FCVs do not need to be made by a qualified manufacturer to be eligible. See Rev. Proc. 2022-42 for more detailed guidance.
Undergo final assembly in North America
Meet critical mineral and battery component requirements (as of April 18, 2023).
The sale qualifies only if:

You buy the vehicle new
The seller reports required information to you at the time of sale and to the IRS.
Sellers are required to report your name and taxpayer identification number to the IRS for you to be eligible to claim the credit.
In addition, the vehicle's manufacturer suggested retail price (MSRP) can't exceed:

$80,000 for vans, sport utility vehicles and pickup trucks
$55,000 for other vehicles
MSRP is the retail price of the automobile suggested by the manufacturer, including manufacturer installed options, accessories and trim but excluding destination fees. It isn't necessarily the price you pay.

You can find your vehicle's weight, battery capacity, final assembly location (listed as “final assembly point”) and VIN on the vehicle's window sticker.

Click the button below to see if a vehicle is eligible for the new clean vehicle credit.

DOES EVERYONE QUALIFY FOR A TAX CREDIT?

If you pay taxes in Colorado, you’re eligible for a state tax credit of $5,000(opens in new window) with the purchase or lease of a new EV with an MSRP up to $80,000. Lease agreements must have an initial term of at least two years. Beginning January 1, 2024, EVs with an MSRP up to $35,000 will be eligible for an additional tax credit of $2,500. If you do not pay taxes in Colorado, you’ll need to check with the state where you do pay taxes to see what EV incentives offered.

As of April, 2023, to receive the full federal EV tax credit of up to $7,500 for new EV purchases(opens in new window), there are several qualifications that you must meet. These include personal or household income, vehicle MSRP caps based on the type of vehicle you’re interested in, vehicle production requirements based on where the vehicle and its components are manufactured and assembled, and battery component and critical minerals sourcing requirements from countries in which the United States has a Free Trade Agreement with.

Vehicles that meet all requirements except for battery sourcing and component requirements may be eligible for half of the federal tax credit up to $3,750.