Electric Vehicle and Energy Incentives
Several government entities and local utilities offer electric vehicle and solar incentives for customers, often taking the form of a rebate or a tax credit. Rebates can be claimed at or after purchase, while tax credits are claimed when filing income taxes. Find state and local-specific incentives available in your area.
For the most up-to-date information, review the sponsoring entity’s website directly for details on eligibility, redemption and program details. View additional details on eligibility and redemption.
Request a callback from a Tesla Advisor to learn about incentives.
Incentives listed here are provided for your convenience only and should not be considered an absolute and complete list and is not a guarantee of your personal eligibility or the incentive’s availability or requirements. These programs are subject to change or end at any time, and are outside of Tesla’s control. For example, some programs have an allocated budget or submission deadline after which the program will end. Be sure to visit the specific program’s website for the most up-to-date information on availability, eligibility and redemption requirements.
Tesla does not guarantee vehicle delivery or energy system installation or permission to operate by a specific date or incentive deadline.
Your eligibility for any tax credits depends on your personal tax situation. We recommend speaking with a tax professional for guidance.
Federal tax incentive amounts and requirements may continue to change. This page will be updated with the latest details as they are made available by the federal government, but we recommend checking the IRS website for the most up to date information.
Inflation Reduction Act
On January 1, 2023, the Inflation Reduction Act of 2022 qualified certain electric vehicles (EVs) for a tax credit of up to $7,500 for eligible buyers.
Qualifications include:
- Customers must buy it for their own use, not for resale
- Use the vehicle primarily in the U.S.
- Adjusted Gross Income (“AGI”) limitations
- MSRP price caps
For the full list of the current requirements, review the IRS website.
Your eligibility for any tax credits depends on your personal tax situation. We recommend speaking with a tax professional for guidance.
To purchase Tesla vehicles as a business or organization, contact the Tesla Fleet team.
Inflation Reduction Act
As part of the 2023 Inflation Reduction Act, eligible businesses and tax-exempt organizations can claim up to a $7,500 credit when purchasing new Tesla vehicles with a gross vehicle weight rating (GVWR) of up to 14,000 pounds. All Tesla passenger vehicles qualify for this incentive:
- Model S
- Model 3
- Model X
- Model Y
- Cybertruck
Additionally, Semi qualifies for a tax credit of up to $40,000.
For the full list of current requirements for commercial clean vehicle credits, review the IRS website.
Note: For businesses, the tax credits are nonrefundable, so you can't get back more on the credit than you owe in taxes. Tax-exempt entities have the option to take a direct payment in lieu of the credit. This business tax credit amount applies to deliveries now. There are currently no AGI or price cap limitations for businesses or tax-exempt organizations.
Section 179 Deduction
Qualifying businesses can claim a deduction of up to $28,900 when purchasing a new Tesla vehicle with a gross vehicle weight rating (GVWR) of at least 6,000 pounds. To qualify for the tax deduction, vehicles must be operated for legitimate business use >50% the time.
For the full list of current requirements and limitations, review the IRS website and consult your tax advisor.
The following federal income tax credits are available to anyone who purchases Powerwalls, solar panels and Solar Roof. Powerwall paired with solar systems are considered qualified expenditures eligible for the tax credit. As of 2023, Powerwall, with or without solar, qualifies for the Investment Tax Credit.
Residential Federal Investment Tax Credit (ITC)
| Solar + Powerwall Residential Federal Investment Tax Credit | Standalone Powerwall Residential Federal Investment Tax Credit | For Systems Receiving Permission to Operate in |
|---|---|---|
| 26% | 0% | 2021 |
| 30% | 0% | 2022 |
| 30% | 30% | 2023-2032 |
| 26% | 26% | 2033 |
| 22% | 22% | 2034 |
| 0% | 0% | 2035 |
Depending on your location, state and local utility incentives may be available for electric vehicles and solar systems. Most rebates can either be claimed after purchase or reflected as a reduction in the price of your purchase.
Many states also offer non-cash incentives for electric vehicles, such as carpool lane access and free municipal parking.
Some communities and utility companies also offer additional incentives through cash back, discounted rate plans and other credits.