The IRS has added Tesla products to the list of vehicles eligible for a federal tax credit of up to $4,000 when purchased as used cars. But the move may have limited impact on your plans to buy a used EV.
The credit now applies to 2009-2011 Tesla Roadsters, 2012-2021 Model S sedans, 2016-2021 Model X SUVs, 2017-2021 Model 3 sedans, and 2020-2021 Model Y SUVs.
Related – Used Electric Car: 10 Things to Know Before You Buy
The agency updates the list regularly as manufacturers provide details to the government on the cars. So Tesla’s appearance on the list may not mean anything substantive has changed. The company may simply have gotten around to filling out the required paperwork to qualify. Tesla no longer operates a public relations department or answers reporters’ questions, so we can’t ask them.
The company may have taken its time filing the paperwork because it’s irrelevant to most shoppers. Limitations on both the car and the buyer mean few Tesla sales will qualify.
That’s true primarily because the rebate applies only to cars with a sale price under $25,000. A nationwide search of used Teslas on our sister site, Autotrader, shows more than 7,400 for sale in the U.S. today but just 193 under that threshold.
Related: How Do Electric Car Tax Credits Work in 2023?
Tesla’s own stock of used cars shows none under $25,000.
The rebate equals 30% of the vehicle’s sale price, up to a maximum of $4,000.
It’s available only on vehicles sold at dealerships and cars at least two years old. Buyers are subject to income limits, and a buyer can claim the credit only once every three years.
