Summary
- Some Tesla Cybertruck versions are now eligible for a $7,500 federal tax credit
- The cheapest Cybertruck will soon go into production
- The tri-motor Cybertruck does not qualify for the tax credit due to exceeding the $80,000 MSRP cap
- The dual-motor All-Wheel Drive version of the Cybertruck can benefit from the tax credit
- The single-motor version of the Cybertruck is also eligible for the tax credit and not yet in production
Article
Tesla Cybertruck versions eligible for the federal tax credit
The IRS has listed the yet-to-be-available single-motor Rear-Wheel Drive trim of the Tesla Cybertruck, making it eligible for the $7,500 federal tax credit. This move indicates that the cheapest Cybertruck model will soon go into production, allowing potential buyers to enjoy the tax credit benefits.
The Cybertruck’s ambitious pricing strategy
The Tesla Cybertruck created a buzz when it was first unveiled as a prototype in 2019, with CEO Elon Musk announcing a starting price of $39,900 for the base version with a single motor. However, the actual pricing turned out to be higher, with the cheapest model currently being the dual-motor All-Wheel Drive trim starting at $79,990. The tri-motor version costs almost $100,000, but buyers can now enjoy a 10% reduction in price due to the federal tax credit.
Tax credit eligibility for the Cybertruck
The Cybertruck is now officially eligible for the $7,500 federal tax credit, providing buyers with a substantial discount. While the tri-motor version exceeds the $80,000 MSRP cap and is not eligible for the credit, the dual-motor All-Wheel Drive model can benefit from the $7,500 cut, bringing its effective price down to $72,490. Even though it is still higher than the initially advertised price, it presents savings for potential buyers.
Features of the single-motor Cybertruck
The list of eligible vehicles also includes the single-motor version of the Cybertruck, even though it is not yet in production and cannot be ordered. This entry-level model, which was previously listed on Tesla’s website with a starting price of $60,990, promises a potentially lower price of $53,490 after the tax credit is applied. This could make it a competitive option compared to other electric vehicles on the market.
Comparison with the Ford F-150 Lightning
The base version of the Ford F-150 Lightning, the XLT, starts at $62,995 before incentives and taxes, making it a similar competitor to the Cybertruck in terms of price. Both vehicles are eligible for the $7,500 tax credit, but the Cybertruck offers unique features such as a single-motor option and an EPA-estimated range of 250 miles. Considering the benefits of both vehicles and the tax credit, buyers have more options to choose from in the electric truck market.
Eligibility requirements for the federal tax credit
To be eligible for the federal $7,500 tax credit when purchasing an electric vehicle, buyers must ensure that their adjusted gross income (AGI) does not exceed specific thresholds based on their filing status. For married couples filing jointly, the AGI limit is $300,000, it is $225,000 for heads of household, and $150,000 for all other filers. By meeting these requirements, buyers can take advantage of the tax credit and make electric vehicle ownership more affordable.
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