Tesla starts applying EV tax credit at time of purchase

Fewer Tesla EVs now qualify for the $7,500 federal EV tax credit, but for those that do, Tesla is now applying the credit at the time of purchase.

The automaker’s website now says that eligible buyers will have the full $7,500 credit applied when they purchase their vehicles. Customers are responsible for determining their eligibility for the credit, which now includes adjusted gross income caps of $300,000 for married couples jointly filing taxes, $225,000 for heads of households, and $150,000 for other filers.

Those that receive a point-of-sale credit but exceed those income caps will have to pay Tesla back. The automaker is also limiting credits to two vehicle purchases per customer per year. Still, Tesla, with its direct-sales distribution system, may be ahead of automakers relying on franchised dealerships. Those dealerships…