Five-Seat Tesla Model Y Does Not Qualify For New Federal Tax Credit via insideevs.com
an SUV if it has seven seats; all the Model Y five-seat variants are listed as cars with an MSRP threshold of $55,000. Since the five-seat Model Y Long Range starts at just under $66,000 and the five-seat Model Y Performance is priced from just under $70,000, these variants are not eligible for the tax credit.
The Tesla Model 3 Performance is not eligible either because it starts at $62,990 and therefore goes above the $55,000 threshold. However, the RWD and Long Range versions of the, the IRS seems to be inconsistent in classifying some EVs as cars or SUVs. For example, all Ford Mustang Mach-E models are considered cars with a $55,000 MSRP limit whereas Volkswagen ID.4 AWD models are considered SUVs with an $80,000 MSRP limit. Mind you, the ID.
It's worth noting that neither the Mustang Mach-E nor the ID.4 offer seven-seat variants, and that the only Mach-E variant eligible for the tax credit is the base Select model that starts at $46,895. Meanwhile,Here's hoping that these inconsistencies will be ironed out by the IRS soon to ensure a level playing field for all automakers.
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