2017 Tesla Tax Credits, Rebates and Incentives by State and Region

By Mia Yamauchi

Anyone who purchases a Tesla in any state can get $7,500 knocked off their federal tax bill as a credit. There are also many state-specific tax credits, rebates and other incentives. Some state have income caps or special rules for Teslas in particular due to the higher MSRP of some Tesla models–and the fact that Teslas are not sold through typical franchise dealerships.

Below is a handy reference to all incentives you may be entitled to for buying a Tesla Model S, Model X, or Model 3. Click the “See Details” link for a more complete explanation of special conditions or deadlines that affect Tesla incentives.


The information in this post is provided solely for education purposes. It is not tax advice. Please contact the IRS or consult with a licensed tax professional to make decisions about your personal or business tax situation.

Updated 2017 Tesla Tax Incentives, Rebates and Perks by State

State / Regional Incentive Federal Tax Incentive State Vehicle Incentive for Teslas Different for Model 3? Type Home Charging Station Incentive Other Perks Deadline Special Deadlines or Conditions for Tesla  
Arizona $7,500 $75 rebate Reduced Vehicle License Tax; HOV Access; Charging Discounts
California $7,500 $2,500 Tax Credit HOV Access thru Jan 2019 Income restrictions apply; Special deadlines for Tesla owners See Details
Delaware $7,500 $1,000 $3,500 Rebate 6/18/2018 Vehicle MSRP restrictions See Details
Colorado $7,500 5000 HOV Access (limited) 1/1/2022
Hawaii $7,500 HOV Access; Parking Discounts
Louisiana $7,500 $1,500 Tax Credit 12/31/17 or 6/30/18, Pending Legislation See Details
Maryland $7,500 $640+ Waived Excise Tax Funds exhausted See Details
Massachusetts $7,500 1000 May differ Rebate As funding allows. Vehicle delivery timing may affect eligibility See Details
Nevada $7,500 HOV Access; Charging Discounts
New Jersey $7,500 Sales Tac Exempt Applies to rentals and leases as well as purchases
New York $7,500 $500 Rebate Tax credit for 50% costs up to $5,000 HOV Access (starting soon) See Details
Oregon $7,500 Tax credit for 50% of costs up to $750 See Details
Pennsylvania $7,500 $1,750 Rebate 6/30/17 or after 250 rebates have been paid out
Rhode Island $7,500 $2,500 Rebate When funding runs out – likely summer ’17 See Details
Washington, DC $7,500 Tax credit for 50% of costs up to $1,000 Excise tax credit exempt 12/31/26 See Details
All Other US States $7,500 Tesla likely to run out of federal tax credits in 2018 See Details
Ontario $14,000 Rebate $1000 rebate
Quebec $3,000 Rebate $600 rebate

When will the $7,500 federal EV tax credit expire for Tesla?

The $7,500 federal tax credit doesn’t have a set expiration date, per se. Instead, it’s allocated to each manufacturer. Once an EV manufacturer has sold 200,000 electric vehicles in the US, the credit starts phasing out either that quarter or the next. Based on our projections, Tesla is set to reach the 200k mark sometime in early 2018. Check out this full explanation for more details.

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