Federal Tax Credit
The Federal Tax Credit will apply to the cost of the solar portion of Solar Roof as well as the cost of a Powerwall battery. The incentive amount is equivalent to a percentage of the eligible costs. The rate is currently set at 26% in 2021 and 2022, and 22% in 2023*. To qualify for the Federal Tax Credit in a particular year, the eligible solar equipment must be installed by December 31st of that year.
How can I estimate the portion of my Solar Roof that could receive the tax credit?
Your Solar Roof Purchase Agreement provides an estimated allocation of components that may be eligible for a tax credit. This estimated allocation is not intended as tax advice; you should discuss this allocation with a tax professional (for the purposes of IRS Form 5695) to determine the appropriate tax credit amount in your circumstance.
*The Consolidated Appropriations Act of 2021 signed December 27, 2020, provided a two-year extension of the Investment Tax Credit for solar. The dates above reflect the extension.