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|
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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