Tesla Credit Phase-Out

For quite some time, purchasers of electric vehicles have received a special tax credit. That tax credit has been a boon to those who have purchased Tesla automobiles. However, that’s coming to an end.  In IR 2018-252 issued December 14, 2018, and in Notice 2018-96, 2018-52 IRB (https://www.irs.gov/pub/irs-drop/n-18-96.pdf), the IRS said Tesla has sold more than the number of eligible vehicles (200,000 for the plug-in electric drive motor vehicle credit under Section 30D(a)), and did that during the third quarter of 2018.  Because of that, the tax credit is now phasing out for those who are buying new Tesla plug-in electric vehicles.  That kicks in January 1, 2019.  You should check with your CPA or tax advisor before you purchase any electric vehicle to make sure you are getting the credit you think you are going to get.