The Complete Guide to the tesla Cybertruck $7,500 EV Tax Credit
The Tesla Cybertruck has redefined what an electric pickup truck can be, blending cutting-edge technology with rugged utility. Available in two configurations—the All-Wheel Drive (AWD) dual-motor version and the high-performance tri-motor Cyberbeast—this EV offers buyers a chance to save significantly through federal and state tax incentives. In this comprehensive guide, we’ll explore how to qualify for and claim tax credits for the Cybertruck, outline the buying process, and include key details on business tax credits.
As always, this is not tax advice and is for informational purposes only. The following information may be inaccurate or out-of-date. Consult a tax professional for accurate information.
Taking Delivery of my Cybertruck in June 2024 in Grand Rapids, Michigan.
Tesla Cybertruck: An Overview
The Tesla Cybertruck is an all-electric, battery-powered light-duty truck designed for durability and performance. Built at Tesla’s Gigafactory in Texas, it comes in two models:
AWD (Dual Motor): Priced at approximately $79,990, it delivers a range of about 340 miles and robust towing capacity.
Cyberbeast (Tri-Motor): Starting at $99,990, this performance powerhouse offers quicker acceleration and a range of up to 320 miles.
Both versions are eligible for tax credits, though the Cyberbeast’s higher price may affect its qualification for the full amount. No Rear-Wheel Drive (RWD) version exists, so we’ll focus solely on these two available models.
Federal Tax Credits for Electric Vehicles
Under Internal Revenue Code Section 30D, the U.S. government provides a federal tax credit of up to $7,500 for new plug-in electric vehicles (EVs). This incentive aims to encourage adoption of cleaner transportation options, and the Cybertruck qualifies as a North American-assembled EV.
Qualifying for the Cybertruck Tax Credit
To claim the $7,500 credit, both the vehicle and the buyer must meet specific requirements.
Cybertruck Vehicle Requirements
The Cybertruck must satisfy these criteria:
Assembly Location: Must be built in North America. The Cybertruck’s production in Texas meets this rule.
Battery Capacity: Requires a minimum of 7 kWh, which both Cybertruck models exceed with their large 123kWh battery packs.
MSRP Cap: For pickup trucks, the Manufacturer’s Suggested Retail Price (MSRP) must not exceed $80,000:
The AWD model ($79,990) qualifies.
Important note: Hardware accessories contribute to the MSRP cap. If you upgrade your interior or wheels, your specific truck will not be eligible for the $7,500 tax credit. Carefully review your configurator, as the business $7,500 tax credit may still apply and may be misleading.
The Cyberbeast ($99,990) exceeds the cap, disqualifying it from the full credit.
Foundation Series ($99,990 or $119,990) exceeds the cap, and is not eligible.
Battery Sourcing: As of 2025, 60% of critical minerals and 60% of battery components must come from the U.S. or free-trade partners. Tesla’s U.S.-produced 4680 cells are compliant.
Note: Cyberbeast buyers should confirm eligibility with Tesla or the IRS, as the higher MSRP may limit the credit.
Buyer Requirements
Buyers must meet these conditions:
Usage: The vehicle must be for personal use in the U.S.
Income Limits: Adjusted gross income (AGI) must not exceed:
$300,000 for married couples filing jointly.
$225,000 for heads of households.
$150,000 for single filers.
These limits make the EV Tax credit accessible to a broad range of buyers.
Get an extra $2,000 off your Cybertruck
In addition to tax credits, Tesla offers special discounts that can lower the cost of a Cybertruck for eligible buyers. Here’s a look at two notable programs: the $1,000 military discount and the $1,000 referral bonus, both of which have been available recently but require confirmation for 2025.
$1,000 Referral Bonus
Tesla’s referral program rewards both new buyers and existing owners. As of October 2024, the Cybertruck was added to the program in the U.S., offering a $1,000 discount to buyers who use a referral code from a current Tesla owner. Key details include:
For Buyers: Apply a referral code at checkout to save $1,000 on a new Cybertruck (AWD or Cyberbeast).
For Referrers: Earn $1,000 in Tesla credits per successful referral, up to 10 times per year.
This bonus briefly increased to $2,000 in November 2024 to boost Q4 sales but reverted to $1,000 by early 2025. The program’s availability fluctuates, so it’s wise to check Tesla’s referral page or app for the latest terms. If active, it can combine with the military discount for up to $2,000 in total savings.
$1,000 Military Discount
Tesla’s Military Purchase Program honors U.S. military members by offering a $1,000 discount on new vehicle purchases, including the Cybertruck. As of late 2024, this program expanded to include the Cybertruck (initially excluded), covering both the AWD and Cyberbeast models. Eligible individuals include:
Active-duty members, veterans, and retirees of the U.S. military.
Spouses and surviving spouses of the above.
The discount applies at the time of order and can often stack with other incentives, like the federal tax credit or referral bonuses. However, Tesla occasionally adjusts eligibility, so buyers should verify current status on Tesla’s Military Purchase Program page or through a Tesla advisor before ordering.
How to Claim the Cybertruck Tax Credit
There are two ways to claim the $7,500 credit:
Apply the Credit at Purchase (point of sale)
Since 2024, buyers can transfer the credit to Tesla at the point of sale, reducing the upfront cost:
Tesla submits the credit details to the IRS via Energy Credits Online.
Buyers receive a time-of-sale report as confirmation.
This method provides immediate savings, ideal for those who don’t want to wait until tax season.
Claim the Credit on Your Tax Return
Alternatively, you can claim the credit when filing your taxes:
Complete Form 8936 with the vehicle’s VIN.
Attach Tesla’s Clean Vehicle Report, available in your Tesla Account.
This option suits buyers who prefer flexibility or have complex tax situations.
The credit is non-refundable. If your tax liability is less than $7,500, you may not be eligible for the entire credit.
Cybertruck Leases
Tesla does not offer a cash-back option for the $7,500 tax credit for leases. Instead, if you are eligible, Tesla simply reduces the monthly cost of your lease. Because of this, the tax credit is already built into your lease quote, and is not received in a lump sum.
The Cybertruck Buying Process
Purchasing a Cybertruck is straightforward, with the tax credit integrated into the process:
Making a Reservation
Place a $250 refundable deposit on Tesla’s website to begin the delivery process.
Finalizing the Purchase
Choose to transfer the $7,500 credit to Tesla (reducing the total price) or claim it later on your taxes.
Complete payment via cash, financing, or trade-in.
The tax credit can apply to either Cash or Financing
Obtain insurance via your carrier of choice (including Tesla Insurance in certain US States)
Taking Delivery
Pick up your Cybertruck at a Tesla center.
Tesla staff May walk you through the vehicle’s features during handover.
Additional Savings: State EV Incentives
Beyond the federal credit, many states offer EV incentives that can stack for extra savings:
Examples of State Incentives
California: Rebates via the Clean Vehicle Rebate Project and HOV lane access.
New York: Up to $2,000 rebate through the Drive Clean Rebate program.
Colorado: A state tax credit of up to $5,000.
Finding State Incentives
Visit your state’s energy or environmental website.
Use the Alternative Fuels Data Center for a comprehensive list.
Tip: Check eligibility, as some states limit combining state and federal credits.
Business Tax Credits for the Cybertruck
Businesses purchasing a Cybertruck for commercial use can access unique tax benefits:
Commercial Clean Vehicle Credit: Under Section 45W, businesses may claim up to 30% of the vehicle’s cost or $7,500 (whichever is less) for qualified EVs used commercially.
Depreciation Benefits: Accelerated depreciation using Section 179 allows businesses to deduct the vehicle’s cost more quickly.
Eligibility: The Cybertruck must be primarily for business use. Consult a tax professional to optimize these incentives and to receive accurate information.
Understanding the Evolving Tax Credit Landscape
The EV tax credit evolves with stricter rules and potential policy shifts:
Increasing Battery Sourcing Requirements
By 2025, 60% of minerals and components must meet sourcing standards, rising to 80% and 100% by 2029.
Tesla’s domestic production keeps the Cybertruck compliant for now.
Political and Legislative Factors
Starting in 2025, vehicles with materials from “foreign entities of concern” (e.g., China) are ineligible. The Cybertruck’s U.S. batteries avoid this issue.
Political debates could alter or reduce EV incentives in the future.
Stay Informed: Check the IRS Clean Vehicle Credits page and Tesla’s Incentives section for updates.
stay up to date on Cybertruck News & Incentives
I post daily on X (formerly Twitter) with news and updates on the Tesla Cybertruck platform, and my personal experience living with one.
Follow my account below to stay up to date!