A dealer can apply the tax credit to any leased electric vehicle, no matter where it's made, to reduce a customer's monthly payment.

The complete Tesla Model 3 and Y lineup now qualifies for a full $ 7,500 federal tax credit for clean cars. On Tuesday, the U.S. EPA officially added all Tesla Model 3 and Model Y variants to its list of tax-credit eligible vehicles.

All Tesla Model 3 sedans qualify for the federal tax credit, a change that has recently appeared on a government site tracking which EVs qualify for the incentives.

The US government confirmed the tax credit of as much as $7,500 for all variations of the Model 3 in an update on its website Tuesday. The change brings the total number of electric vehicle models eligible for the full tax credits to 22,

Until the end of 2022, the IRS offered a tax credit of up to $7,500 for qualifying plug-in vehicles. The size of the credit was based on battery capacity, and there was a provision to sunset the tax credit for a given manufacturer once it sold more than 200,