The Tesla Model X is a rather portly vehicle, with a claimed curb weight of 5,441 pounds, according to the automaker. While that’s less than ideal for its range and efficiency, it turns out it might be good news for prospective buyers, with Autoblog reporting that due to its weight, the Tesla Model X might qualify for up to $25,000 in tax breaks if the buyer in question happens to be a small business owner.
Section 179 of the IRS tax code – a.k.a. the so-called “Hummer Loophole” – stipulates that any vehicle might qualify for a $25,000 tax break if 1) the Gross Vehicle Weight Rating (GVWR) exceeds 6,000 pounds, 2) it is acquired for business use, and 3) it is “an integral part of… furnishing transportation,” according to Autoblog. The GVWR is defined as the total theoretical weight including all occupants and cargo when fully loaded, minus any trailers.
Obviously, the Tesla Model X will have no problem whatsoever meeting the second requirement, and Tesla Motors’ Alexis Georgeson reportedly confirmed to Autoblog that they “expect the GVWR to exceed 6,000 lbs. This means a Section 179 deduction could be taken for up to $25,000 of the purchase price.”
Of course, that still leaves the buyer to demonstrate that they own a business operation, and that the Tesla Model X figures into the practical conduct of that business. Meanwhile, even without the use of Section 179 of the IRS tax code, the Tesla Model X can qualify for a $7,500 credit from the federal government, plus whatever state tax credits might apply.