Credit for Plug-in Electric Vehicles Phased out for Tesla Models:

Under IRC Sec. 30D(e)(2), the credit for new qualified plug-in electric drive motor vehicles is phased out over a period of four calendar quarters once the total number of qualifying vehicles sold by a manufacturer after 2009 reaches 200,000. In a recent Notice, the IRS announced that Tesla, Inc. reached this limit during the calendar quarter ending 9/30/18. Therefore, qualifying Tesla vehicles are eligible for the full $7,500 credit if they are purchased before 1/1/19. A reduced credit of $3,750 applies to vehicles purchased from 1/1/19 through 6/30/19. On 7/1/19, the credit will be reduced to $1,875 for the remainder of the year. After 12/31/19, no credit will be available. Notice 2018-96 and News Release IR 2018-252.