Tesla expects to hit cap for federal tax credits in 2018
Over the past few years, one of the most popular car companies in the world has been Tesla. While Tesla did not invent the electric car, they are the first car company to combine style and performance into the car. Because of the style and tech features that come with the car, many car buyers have chosen Tesla over other electric and luxury options.
While many car buyers have chosen Tesla for its style, power, and electric capabilities, others have also been enticed by the fact that they would qualify for a $7,500 federal tax credit that could be claimed on their next federal tax return filing. While Tesla drivers have benefited from this in the past, it is now estimated that this tax credit could be going away in the near future.
According to the current rule in place, buyers of Tesla vehicles would be able to qualify for the tax credit until Tesla sells its 200,000th car. Once they go over this amount, the tax credit will extend for an additional quarter before being cut in half. Furthermore, the federal government is also rumored to be considering a reduction in this tax credit in total.
At this point, Tesla expects that it will release its 200,000th car at some point later in 2018. When this occurs, there is a good chance that there will be a change in the overall demand for the car company. Buyers may instead opt for some of the other electric or luxury cars available.