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Tesla Plug-In Tax Credit Phase Down Starts Jan. 1, IRS Says

Dec. 14, 2018, 7:47 PM

The IRS will start winding down a tax credit for Tesla plug-in electric vehicles beginning Jan. 1.

The Internal Revenue Service said Tesla sold over 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the third quarter, which triggered a phase out of the tax credit. Starting Jan. 1, Tesla plug-ins will be eligible for a $3,750 tax credit, the IRS announced Dec. 14.

Qualifying Tesla vehicles sold before Jan. 1 are still eligible for a $7,500 credit.

The next step in the phase down will be on Jan. 1, when the Tesla credit will be cut ...