Tesla Model X Eligible for $25K Tax Credit

Businesses that purchase a Tesla Model X SUV for business use in California are eligible federal and state tax credits of $35,000 that could significantly reduce the $100,000 price tag of the luxury vehicle.

The vehicle already qualifies for a federal rebate of $7,500 and a California rebate of $2,500. Additionally, because it weighs more than 6,000 pounds, it would qualify under Section 179 of the IRS tax code, meaning a business owner could deduct $25,000 of its cost as business equipment.

The deduction, which is targeted at small businesses, would reduce taxable income on a business owner's tax return. Someone in the 33% tax bracket could see a reduction of $18,250, reports the Los Angeles Times.