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Could The Tesla Model X Get A $25,000 Tax Deduction?

Well, Fred Lambert has stumbled across a very interesting possibility. We all know that there are a ton of ridiculous tax loopholes out there. We also tend to figure that they don’t benefit “the good guys,” but sometimes they can.

Fred has pointed out that what is informally referred to as the “Hummer Tax Loophole” could benefit buyers of the Tesla Model X. The loophole used to allow for tax deductions up to $500,000 when you bought heavy vehicles or equipment (that would presumably be used for some industrial activities). It now just allows for $25,000, but that’s still a notable chunk of money.

I imagine you’re now curious how this applies to a Model X. Fred explains it like this: “Under the Section 179,  a SUV or Crossover, like the Model X, needs to have a gross vehicle weight rating (GVWR) of over 6,000 lbs to be eligible for the tax deduction. Tesla has yet to confirm the official GVWR of the Model X, but a little extrapolation from the specifications of the Model S, which is built on the same platform as the Model X, shows that Tesla’s new SUV could easily reach over 6,000 lbs.”

Fred gets into more details (check them out at the link above if interested), but here’s the snapshot story:

  • GVWR for the Model S is 5,710 lbs
  • Elon has stated that the Model X is ~10% heavier
  • that makes the Model X GVWR 6,170 lbs (i.e., >6,000 lbs)

I’m not a tax specialist and can’t really say if this is the full story or if some critical detail is missing here, but the way it’s laid out, it looks like the Model X should be eligible.

Image by Andrew Butko (CC BY-SA 3.0)

Written By

is the director of CleanTechnica, the most popular cleantech-focused website in the world, and Planetsave, a world-leading green and science news site. He has been covering green news of various sorts since 2008, and he has been especially focused on solar energy, electric vehicles, and wind energy since 2009. Aside from his work on CleanTechnica and Planetsave, he's the founder and director of Solar Love, EV Obsession, and Bikocity. Zach has long-term investments in TSLA, SCTY, FSLR, SPWR, SEDG, & ABB. After years of covering solar and EVs, he simply had a lot of faith in these companies and felt like they were good companies to invest in as a portion of his retirement strategy. To connect with Zach on some of your favorite social networks, go to ZacharyShahan.com and click on the relevant buttons.


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