The following federal income tax credits are available to anyone who purchases a new Tesla Model S, Model X or Model 3:
| Federal Tax Credit |
For Vehicles Delivered |
| $7,500 |
On or before December 31, 2018 |
| $3,750 |
January 1 to June 30, 2019 |
| $1,875 |
July 1 to December 31, 2019 |
| Federal Tax Credit |
For Vehicles Delivered |
| $7,500 |
On or before December 31, 2018 |
| $3,750 |
January 1 to June 30, 2019 |
| $1,875 |
July 1 to December 31, 2019 |
Several states and local utilities offer additional electric vehicle incentives for customers, often taking the form of a rebate. Rebates can be claimed immediately after purchase, while tax credits are claimed when filing income taxes.
Many states also offer non-cash incentives, such as carpool lane access in California and free municipal parking.
| All states | $7,500 income tax credit (subject to phase out schedule above) |
| Arizona |
Reduced Vehicle License Tax, Carpool lane access and reduced rates for electric vehicle charging |
| California | $2,500 rebate (based on income eligibility) |
| Connecticut | $3,000 rebate for new vehicles with a base price under $60,000 |
| Colorado | $5,000 tax credit for purchase of a new vehicle
$2,500 tax credit for lease of a new vehicle |
| Delaware | $1,000 rebate for new vehicles with a base price over $60,000
$3,500 rebate for new vehicles with a base price under $60,000 |
| Hawaii | Carpool lane access and reduced rates for electric vehicle charging |
| Louisiana |
$2,500 income tax credit |
| Maryland |
$3,000 Excise Tax Credit for new vehicles with a total price under $60,000
$700 rebate on wall connectors and installation |
| Massachusetts | $1,000 rebate for new vehicles with a base price over $60,000
$2,500 rebate for new vehicles with a base price under $60,000 |
| Nevada |
Reduced rates for electric vehicle charging |
| New Jersey | Sales tax exempt |
| 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 |
| Pennsylvania |
$1,750 rebate for new vehicles with a base price under $50,000
(500 rebates available between January 1 and June 30, 2018) |
| Washington DC |
Excise tax exempt |
| All states |
| $7,500 income tax credit |
| Arizona |
| Reduced Vehicle License Tax, Carpool lane access and reduced rates for electric vehicle charging |
| California |
| $2,500 rebate (based on income eligibility) |
| Connecticut |
| $3,000 rebate for new vehicles with a base price under $60,000 |
| Colorado |
$5,000 tax credit for purchase of a new vehicle
$2,500 tax credit for lease of a new vehicle |
| Delaware |
$1,000 rebate for new vehicles with a base price over $60,000
$3,500 rebate for new vehicles with a base price under $60,000 |
| Hawaii |
| Carpool lane access and reduced rates for electric vehicle charging |
| Louisiana |
| $2,500 income tax credit |
| Maryland |
$3,000 Excise Tax Credit for new vehicles with a total price under $60,000
$700 rebate on wall connectors and installation |
| Massachusetts |
$1,000 rebate for new vehicles with a base price over $60,000
$2,500 rebate for new vehicles with a base price under $60,000 |
| Nevada |
| Reduced rates for electric vehicle charging |
| New Jersey |
| Sales tax exempt |
| 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 |
| Pennsylvania |
$1,750 rebate for new vehicles with a base price under $50,000 and under
(500 rebates available between January 1 and June 30, 2018) |
| Washington DC |
| Excise tax exempt |
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.
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.