Dreaming of Tesla? Hurry up the tax rebate halves in 2019

IRS Notice 2018-96 provides that qualifying vehicles from Tesla, Inc. purchased for use or lease are eligible for a $7,500 credit if acquired before Jan. 1, 2019. Beginning Jan. 1, 2019, the credit will be $3,750 for Tesla’s eligible vehicles. On July 1, 2019, the credit will be reduced to $1,875 for the remainder of the year. After Dec. 31, 2019, no credit will be available.

Code Sec. 30D(a) provides for a credit for certain new qualified plug-in electric drive motor vehicles. The new qualified plug-in electric drive motor vehicle credit begins to phase out for a manufacturer’s vehicles in the second calendar quarter after the calendar quarter in which at least 200,000 of the manufacturer’s vehicles that qualify for the credit have been sold for use or lease in the U.S.

So what are you waiting for? Hurry up if you are intending to buy or lease Tesla. Only few weeks are left to claim the credit and bring down the cost of the vehicle. Merry Christmas!