"Electric Vehicle Tax Credits: Changes and Updates You Need to Know"

The federal tax credit for the Tesla Model 3 RWD will be reduced from $7,500 to $3,750 starting April 18. The tax credit reduction is due to the battery pack of the Model 3 RWD being produced and assembled in China, which does not meet the eligibility criteria for the full tax credit. Customers who purchase more expensive variants of the Model 3, such as the Model 3 Performance, will still be eligible for the full $7,500 tax credit. The adjusted gross income limitations for claiming the electric vehicle tax credit are $300,000 for married couples filing jointly, $225,000 for heads of households, and $150,000 for all other filers.