Tesla Model X is going to be launched on September 29th. With this announcement, there is good news and it might be popular with the American business owners as the car model could potentially be eligible for $25,000 in tax deduction.
Tesla Model X price is starting at $80,000, however, the potential car owners could possibly be paying lower than this figure as there is $7,500 federal tax credit offer for purchasing electric vehicles, other tax incentives at the state level as well as there is possibility that Model X is eligible for $25,000 tax deduction for heavy vehicles under Section 179.
Under Section 179, taxpayers are allowed to deduct the cost of certain assets instead of capitalizing and depreciating them which makes it popular with businesses. It is allowed deduction up to $500,000 for purchase of heavy vehicles and equipment. The amount has been revised to be up to $25,000 in tax deductions; however, active lobbyists are trying to bring it back to $500,000.
In order for the car model to be eligible for this tax deduction, it needs to have Gross Vehicle Weight Rating (GVWR) of over 6000 lbs. Tesla has not confirmed that the weight of Model X, however, with comparison of the weight of Model S as Model X is built with the same platform as Model S, Tesla’s Model X could easily reach over 6000 lbs.
What is GVWR? It is the sum of the weight of the vehicle and the weight of driver, passengers and cargo capacity excluding the weight of trailer and towing capacity. Not counting of the battery size, the GVWR of Model S is 5710 lbs and according to Elon Musk, Tesla CEO, Model X is about 10% heavier than Model S. With this information, Model X will be the first electric vehicle with GVWR over 6000 lbs.
With all these deductions, it is not surprising that Model X will be popular among American business owners.