Electric carmaker Tesla said orders for cars placed by Oct. 15 will be eligible for a full federal tax credit of $7,500 and these customers will get their cars delivered by the end of the year.
Under a major tax overhaul passed by the Republican-controlled U.S. Congress late last year, incentives in the way of tax credits that lower the cost of electric vehicles are available for the first 200,000 such vehicles sold by an automaker. The tax credit is then reduced by 50 percent every six months until it phases out.
In July, Tesla said it delivered 200,000 electric cars to buyers in the United States, meaning tax credits will now begin to be lowered while rivals such as Mercedes-Benz, BMW, and Audi will bring electric models to the market with a full tax credit in place.
Buyers of electric cars get full tax credit for the quarter in which the company hits the 200,000 delivery mark and the next, according to Internal Revenue Service regulation.