List of Model Y configs that qualify for the 2023 Federal Tax Credit

WyoDude · Jan 14, 2023

durniljr said:
We think the 7500 will go away by March 31?

Based on Teslas own messaging on the website currently, it seems there is an increased probability they will only qualify for $3750 after March until they can shift more of the battery supply chain. No idea how long that would take.

Konicom04 · Jan 14, 2023

...and I just purchased M3 performance at the end of December *eyeroll

ramlax13 · Jan 14, 2023

The MY should now qualify for the NJ $2,000 rebate but doesn’t show on Tesla site or nj site since it’s so new. Wonder how that works

ramlax13 · Jan 14, 2023

Steven_H said:
You can add those later and not impact the MSRP.

How do you add later and get for same price/not impact msrp? Is it still included in your loan?

Sam Garrison · Jan 14, 2023

ramlax13 said:
The MY should now qualify for the NJ $2,000 rebate but doesn’t show on Tesla site or nj site since it’s so new. Wonder how that works

Yes, as long as configured price is below 55k . I want 7 seater that goes for 56,990 minimum which makes it inelgible

Yelobird · Jan 14, 2023

Sam Garrison said:
Yes, as long as configured price is below 55k . I want 7 seater that goes for 56,990 minimum which makes it inelgible

Not correct. Any 7 seat model qualifies up to 80k. Same for those upset about the performance model. You can Add the performance software update the day you get your car via the app and still get the tax incentive.

ramlax13 · Jan 14, 2023

Yelobird said:
Not correct. Any 7 seat model qualifies up to 80k. Same for those upset about the performance model. You can Add the performance software update the day you get your car via the app and still get the tax incentive.

We are talking about nj rebate

Gdzray · Jan 14, 2023

Just ordered my MY LR, it's eligible. Seems like FSD won't change the eligibility. There is a note that says software doesn't have any effect on tax credit.

Steven_H · Jan 15, 2023

ramlax13 said:
How do you add later and get for same price/not impact msrp? Is it still included in your loan?

Via Upgrades in the menu on rhe

Gdzray said:
Just ordered my MY LR, it's eligible. Seems like FSD won't change the eligibility. There is a note that says software doesn't have any effect on tax credit.

Too bad nobody can get red/white seats and still qualify. But, blue/white seats would also be cool and qualify.

2022S-LR · Jan 15, 2023

Sunshine Speed said:
VW ID4 AWD is heavy and has much higher ground clearance than Tesla Y, so it's classified as SUV. Ford MachE and Tesla Model Y are lighter and have lower ground clearance, so not classified an SUV, hence $55K limit. If you add a 3rd row to the Y then it becomes heavier and qualifies for the SUV classification at $80K limit.

So by that logic, Tesla puts a few case of beer in the back as part of the package , and all MY qualifies for the SUV $80k limit tax rebate ….

Or just lower prices across the board, and sell an insanely amount of more cars

scSeattle · Jan 15, 2023

Sunshine Speed said:
New price drops tonight, here is my view of which Model Y qualify for the 2023 federal tax credit between now and March:

Model Y Performance 5-seater (MSRP gotta be under $55k) : None of them qualify.

Model Y Long Range 5-seater : Gotta stay under $55K before destination charge. These configs will quality for the federal tax credit [exterior/interior/wheels]:
- Red/Black/19s
- Black/Black/19s
- White/Black/19s
- White/Black/19s with Tow
- White/Black/20s
- White/White/19s
- White/White/19s with Tow
- Gray/Black/19s
- Gray/Black/19s with Tow
- Gray/White/19s
- Blue/Black/19s
- Blue/Black/19s with Tow
- Blue/White/19s

Model Y Long Range 7-seater (Gotta be under $80K) : All of them qualify with any color, wheel, tow hitch, interior options. Don't add FSD or EAP to keep it under $80K.

View attachment 895389
Admin note: Image added for Blog feed.

Question regarding order fee $ 250
MY LR White exterior and full black interior is $ 52,990 plus induction wheel is $ 2000
This totals to $ 54,990.00 which makes it eligible for tax credit $ 7,500
What about the order fee $ 250
Is this order fee making the purchase price of vehicle to $ 54,990 + $ 250= 55,240
Then it would not be eligible for ev tax rebate of $ 7,500

smallindiana · Jan 15, 2023

Sharath Buddhe said:
Question regarding order fee $ 250
MY LR White exterior and full black interior is $ 52,990 plus induction wheel is $ 2000
This totals to $ 54,990.00 which makes it eligible for tax credit $ 7,500
What about the order fee $ 250
Is this order fee making the purchase price of vehicle to $ 54,990 + $ 250= 55,240
Then it would not be eligible for ev tax rebate of $ 7,500

No. Any fees associated are not considered part of MSRP which the IRA says are excluded. I’m not an accountant or a financial advisor, just what I’ve seen/heard/researched. I’m assuming you are good, although $10 is too close for my comfort.

SpicyPaneer · Jan 15, 2023

ramlax13 said:
The MY should now qualify for the NJ $2,000 rebate but doesn’t show on Tesla site or nj site since it’s so new. Wonder how that works

No it does not, only m3 sr qualified

SpicyPaneer · Jan 15, 2023

Sharath Buddhe said:
Question regarding order fee $ 250
MY LR White exterior and full black interior is $ 52,990 plus induction wheel is $ 2000
This totals to $ 54,990.00 which makes it eligible for tax credit $ 7,500
What about the order fee $ 250
Is this order fee making the purchase price of vehicle to $ 54,990 + $ 250= 55,240
Then it would not be eligible for ev tax rebate of $ 7,500

You can alway get the induction wheels or better later, just get close to the price point and that’s all. You can always get the adorns later jus to the safe. Personally the Tesla & TS Sportline wheels are heavy beasts. Look for aftermarket option. The wheel size is 5x114.3 for the hub.

SpicyPaneer · Jan 15, 2023

I just placed the order for white with black interior. The paint is not worth the extra cost, their paint is so iffy. I plan to get the car PPF anyway. Look for STEK film, they can apply to your car in almost all the popular colors.

2022S-LR · Jan 15, 2023

Sharath Buddhe said:
Question regarding order fee $ 250
MY LR White exterior and full black interior is $ 52,990 plus induction wheel is $ 2000
This totals to $ 54,990.00 which makes it eligible for tax credit $ 7,500
What about the order fee $ 250
Is this order fee making the purchase price of vehicle to $ 54,990 + $ 250= 55,240
Then it would not be eligible for ev tax rebate of $ 7,500

As far as what I have read, it only applies to physical items on the vehicle at time of delivery. Delivery fees documentation, taxes and even software upgrades are not calculated into the base cost of the tax rebate Purchase limit . There should be a little bottom of on the 1st order page , telling you if this order is eligible. If you don’t see the disclaimer , then you are not eligible.
Welcome to the Tesla Family

cwerdna · Jan 16, 2023

Sharath Buddhe said:
Question regarding order fee $ 250
MY LR White exterior and full black interior is $ 52,990 plus induction wheel is $ 2000
This totals to $ 54,990.00 which makes it eligible for tax credit $ 7,500
What about the order fee $ 250
Is this order fee making the purchase price of vehicle to $ 54,990 + $ 250= 55,240
Then it would not be eligible for ev tax rebate of $ 7,500

It's not a tax rebate, it's a tax credit.

Electric Vehicle & Solar Incentives | Tesla Support under Federal Tax Incentives, Vehicles has the below:

IRS material like the below may/may not help:

Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service

You may qualify for a clean vehicle tax credit up to $7,500 if you buy a new, qualified plug-in electric vehicle or fuel cell electric vehicle.

www.irs.gov

Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service

You may qualify for a clean vehicle tax credit up to $7,500 if you buy a new, qualified plug-in electric vehicle or fuel cell electric vehicle.

www.irs.gov

Frequently asked questions about the New, Previously-Owned and Qualified Commercial Clean Vehicles Credit | Internal Revenue Service

Frequently asked questions related to the new, previously-owned and qualified commercial clean vehicles credit.

www.irs.gov

Q6 of Topic A — Frequently Asked Questions About the Eligibility Rules for the New Clean Vehicle Credit | Internal Revenue Service talks about the March 2023 stuff (critical mineral and battery component requirements) that is not in effect yet. Obviously, all Teslas have more than enough battery capacity (in kWh) to qualify for the full $7500 if you do that math.

I haven't followed this closely as I have no interest in a Y and my income is too high to qualify anyway.

Evpowerdan · Jan 16, 2023

IMO - All the vagueness and postponing the "true requirements for another few months" leave MFG's and buyers in limbo. The whole IRA EV rebates for 2023 should be more flexible, given the federal gov't wants mass adoption to meet their go green goals. EV's are more expensive than ICE vehicles to start with, and change is not an easy thing for most people. Keeping it simple would do worlds for adoption.

All SUV's should be a $80k max - Model Y, MachE should be in the same category as an ID 4 (which is much smaller in length). Then open up to other MFG's who don't yet build in the USA yet - as building a mfg plant is the easiest part, getting materials to build and skilled workers will be challenging.

JaxY · Jan 16, 2023

Sunshine Speed said:
New price drops tonight, here is my view of which Model Y qualify for the 2023 federal tax credit between now and March:

Model Y Performance 5-seater (MSRP gotta be under $55k) : None of them qualify.

Model Y Long Range 5-seater : Gotta stay under $55K before destination charge. These configs will quality for the federal tax credit [exterior/interior/wheels]:
- Red/Black/19s
- Black/Black/19s
- White/Black/19s
- White/Black/19s with Tow
- White/Black/20s
- White/White/19s
- White/White/19s with Tow
- Gray/Black/19s
- Gray/Black/19s with Tow
- Gray/White/19s
- Blue/Black/19s
- Blue/Black/19s with Tow
- Blue/White/19s

Model Y Long Range 7-seater (Gotta be under $80K) : All of them qualify with any color, wheel, tow hitch, interior options. Don't add FSD or EAP to keep it under $80K.

View attachment 895389
Admin note: Image added for Blog feed.

Thought the Y Long Range was now $52,900?

ramlax13 · Jan 16, 2023

SpicyPaneer said:
No it does not, only m3 sr qualified

Why wouldn’t it now that msrp is under 55k

List of Model Y configs that qualify for the 2023 Federal Tax Credit

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