Federal Tax Incentives

Solar

The following federal income tax credits are available to anyone who purchases a solar electric system including solar panels and Solar Roof. Energy storage paired with solar systems are considered qualified expenditures eligible for the tax credit.

Residential Federal Tax Credit Business Federal Tax Credit For Systems Installed: 26% 26% January 1 to December 31, 2020 22% 22% January 1 to December 31, 2021 0% 10% On or after January, 2022

Residential Federal Tax Credit Business Federal Tax Credit For Systems Installed: 26% 26% January 1 to December 31, 2020 22% 22% January 1 to December 31, 2021 0% 10% On or after January, 2022

Charging

Customers who purchase qualified residential charging equipment between January 1, 2018 and December 31, 2020 may receive a tax credit of up to $1,000.

State Incentives

Several states and local utilities offer additional electric vehicle and solar incentives for customers, often taking the form of a rebate. Most rebates can either be claimed after purchase or reflected as a reduction in the price of your purchase for solar systems, while tax credits are claimed when filing income taxes.

Many states also offer non-cash incentives for electric vehicles, such as Carpool lane access in California and free municipal parking.

Electric Vehicles Solar & Energy Storage All states 26% federal income tax credit (subject to phase out schedule above) Arizona Reduced Vehicle License Tax and Carpool lane access Solar: Up to $1,000 state tax credit California $2,000 or $4,500 rebate (based on income eligibility) for Model 3 and Model Y*

$5,000 grant (based on income eligibility)*

*Review eligibility prior to applying Solar: Select utilities may offer incentives

Powerwall: see California Self-Generation Incentive Program (SGIP) Colorado $4,000 tax credit for purchase of a new vehicle

$2,000 tax credit for lease of a new vehicle Select utilities may offer a Solar incentive Connecticut $1,500 rebate for new vehicles with a base price under $42,000

Exemption from state emissions testing

Reduced vehicle registration fee Solar: Up to $300 per kW PTC Delaware $2,500 rebate for new vehicles with a purchase price under $60,000

$500 rebate available for home charging installation Select utilities may offer a Solar incentive Florida Funding may be available for home charging installation assistance Hawaii Carpool lane access and reduced rates for electric vehicle charging Solar: State tax credit equal to the lesser of 35% of actual system cost or $5,000 per 5 kW Idaho State exemption from vehicle inspection & maintenance program Illinois EV exemption from state emissions testing; reduced registration fees Earn $1,000 per kW off the cash or loan price of solar panels, and $860 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC) Louisiana $2,500 income tax credit Maine $2,000 rebate for new vehicles with a base price under $50,000 Maryland $700 rebate on wall connectors and installation

Qualified vehicles are exempt from emissions testing

HOV lane access Solar: $1,000 per system

Solar: Earn $170 per kW off the cash or loan price of solar panels and $140 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC)

Powerwall: State tax credit equal to 30% of installed cost up to $5,000 per property Massachusetts $2,500 rebate for new vehicles with a purchase price under $50,000 Solar: Up to $1,000 State Tax Credit

Solar: Select utilities may offer a solar incentive

Powerwall: Select utilities may offer a storage incentive Nevada Reduced rates for electric vehicle charging

AFV Parking Fee & state emissions testing exemptions Powerwall: Up to $3,000 New Hampshire Solar: Earn $100 per kW off the cash or loan price of solar panels and $80 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC) New Jersey $5,000 rebate for purchase or lease of a new vehicle with a purchase price under $55,000

Sales tax exemption

10% discount on off-peak toll prices on NJT & GSP through EZ-Pass Solar: Earn $720 per kW off the cash or loan price of solar panels and $600 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC) New York $500 rebate for new vehicles with a base price over $60,000

$2,000 rebate for new vehicles with a base price under $60,000

State emissions testing exception Solar: Up to $350 per kW and up to $5,000 state tax credit North Carolina State emissions testing exemption & HOV lane access Pennsylvania Solar: Earn $90 per kW off the cash or loan price of solar panels and $80 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC) Oregon Standard Rebate of $2,500 for purchase or lease of a new Tesla

Charge Ahead rebate of $2,500 for purchase or lease of new or used Tesla for eligible customers Solar: $300 per kW up to $2,400 Rhode Island State emissions testing exemption Solar: Earn $100 per kW off the cash or loan price of solar panels and $80 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC) Texas Solar: Select utilities may offer a Solar incentive Utah Solar: Up to $1,600 state tax credit Vermont Depending on income level, up to $5,000 rebate for purchase or lease of a new vehicle with a base price under $40,000 Solar: $0.02 per kWh production incentive for 10 years Washington A retail sales tax reduction is available on the purchase or lease of a new vehicle. Washington DC Excise tax exempt

Reduced vehicle registration fees

Tax credit for 50% of costs of home charging installation, up to $1,000 Solar: Earn $930 per kW off the cash or loan price of solar panels and $780 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC)

All states Solar: 26% federal income tax credit (subject to phase out schedule above) Arizona Electric Vehicle: Reduced Vehicle License Tax and Carpool lane Solar: Up to $1,000 state tax credit California Electric Vehicle: $2,000 or $4,500 rebate (based on income eligibility) for Model 3 and Model Y*

$5,000 grant (based on income eligibility)*

*Review eligibility prior to applying Solar: Select utilities may offer incentives

Powerwall: see California Self-Generation Incentive Program (SGIP) Connecticut Electric Vehicle: $1,500 rebate for new vehicles with a base price under $42,000

Exemption from state emissions testing

Reduced vehicle registration fee Solar: Up to $400 per kW PTC Colorado Electric Vehicle: $4,000 tax credit for purchase of a new vehicle

$2,000 tax credit for lease of a new vehicle Solar: Select utilities may offer a Solar incentive Delaware Electric Vehicle: $2,500 rebate for new vehicles with a purchase price under $60,000

500 rebate available for home charging installation Solar: Select utilities may offer a Solar incentive Florida Electric Vehicle: Funding may be available for home charging installation assistance Hawaii Electric Vehicle: Carpool lane access and reduced rates for electric vehicle charging Solar: State tax credit equal to the lesser of 35% of actual system cost or $5,000 per 5 kW Idaho Electric Vehicle: State exemption from vehicle inspection & maintenance program Illinois Electric Vehicle: EV exemption from state emissions testing; reduced registration fees Solar: Estimated $1,030 per kW Louisiana Electric Vehicle: $2,500 income tax credit Maine Electric Vehicle: $2,000 rebate for new vehicles with a base price under $50,000 Maryland Electric Vehicle:$700 rebate on wall connectors and installation

Qualified vehicles are exempt from emissions testing

HOV lane access Solar: $1,000 per system

Powerwall: 30% of installed cost up to $5,000 per property Massachusetts Electric Vehicle: $2,500 rebate for new vehicles with a purchase price under $50,000 Solar: Up to $0.128 per kWh production incentive for 10 years

Up to $1,000 State Tax Credit

Up to $0.05/kWh for 10 years when Powerwall is paired with solar Nevada Electric Vehicle: Reduced rates for electric vehicle charging

AFV Parking Fee & state emissions testing exemptions Powerwall: Up to $3,000 New Jersey Electric Vehicle: $5,000 rebate for purchase or lease of a new vehicle with a purchase price under $55,000

Sales tax exempt

10% discount on off-peak toll prices on NJT & GSP through EZ-Pass Solar: Solar Renewable Energy Credits (SREC) offers $0.55 per Watt off the cash or loan price of solar panels and $0.46 per Watt off the cash or loan price of Solar Roof New York Electric Vehicle: $500 rebate for new vehicles with a base price over $60,000

$2,000 rebate for new vehicles with a base price under $60,000

State emissions testing exception Solar: Up to $350 per kW and up to $5,000 state tax credit North Carolina Electric Vehicle: State emissions testing exemption & HOV lane access Solar: Up to $350 per kW and up to $5,000 state tax credit Oregon Electric Vehicle: Standard Rebate of $2,500 for purchase or lease of a new Tesla

Charge Ahead rebate of $2,500 for purchase or lease of new or used Tesla for eligible customers Solar: $400 per kW up to $3,200 Pennsylvania Solar: Earn $90 per kW off the cash or loan price of solar panels and $80 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC) Rhode Island Electric Vehicle: State emissions testing exemption Solar: $900 per kW up to $7,500 Texas Solar: Select utilities may offer a Solar incentive Utah Solar: Up to $1,600 state tax credit Vermont Electric Vehicle: Depending on income level, up to $5,000 rebate for purchase or lease of a new vehicle with a base price under $40,000

Solar: $0.02 per kWh production incentive for 10 years Washington Electric Vehicle: A retail sales tax reduction is available on the purchase or lease of a new vehicle. Washington DC Electric Vehicle: Excise tax exempt

Reduced vehicle registration fees

Tax credit for 50% of costs of home charging installation, up to $1,000

All of the above incentives are available when purchasing a Tesla vehicle with cash or a loan. Only California, Colorado, Massachusetts, New York and Tennessee incentives are available when leasing a Tesla vehicle.

Above solar incentives apply to eligible residential customers. Incentive programs are offered and administered by government agencies. Eligibility and availability vary and are outside of Tesla’s control. Most programs are limited to a total dollar amount that can be dispersed or will expire on a certain date. Be sure to visit the state program’s website for the most up-to-date information on availability and redemption requirements.

Your eligibility for income tax credits depends on your personal tax situation. We recommend speaking with a tax professional for guidance.

Local & Utility Incentives

Some communities and utility companies also offer additional incentives through cash back, discounted rate plans and other credits:

Learn more about Powerwall incentives here.