Tesla Model X (Photo : Reuters/Stephen Lam)
Small business owners who buy the Tesla Model X Crossover SUV are not only eligible for various state and federal tax credits, but might also qualify for a tax deduction up to $25000. The Internal Revenue Service's (IRS) discount provision is commonly referred to as the Hummer Tax Loophole as many businesses have used it to get a better deal on big gas-guzzling SUVs.
IRS Section 179 is the name of the rule. It would be ironic if the Model X qualifies for the loophole as "green" electric cars and plug-in hybrids are in part built to be more eco-friendly than fully fossil fuel-powered vehicles.
The write-off only applies to SUV purchases by small businesses that use the vehicle as an "integral" tool for transportation, according to Clean Technica. In addition, many conditions apply, such as the SUV must be a purchase rather than a gift.
Another qualification is that passenger vehicles must have a gross vehicle weight rating (GVWR) of over 6,000 pounds (2,721 kilograms). At a Model X launch event last week someone snapped a photo of a door sticker showing the electric vehicle's GVWR: 6,768 pounds.
Electrek's Fred Lambert reported that Tesla's Model X is the first electric car that meets the Hummer tax loophole. Assuming a base price of $93,000, the IRS Section 179 would result in a cash savings of around $13,500, resulting in a discounted price of about $79,500, according to Hybrid Cars. That is within a 35-percent tax bracket.
This price does not factor in state and federal tax credits. After applying them the Model X could have a super-discounted price tag of a base Tesla Model S 70D.
This video shows a test drive of the Tesla Model X:
