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Electric Vehicle & Solar Incentives
Federal Tax Incentives
Solar
The following federal income tax credits are available to anyone who purchases a solar electric system including solar panels and Solar Roof. Energy storage paired with solar systems are considered qualified expenditures eligible for the tax credit.
Residential Federal Tax Credit | Business Federal Tax Credit | For Systems Installed |
26% | 26% | January 1, 2020 to December 31, 2022 |
22% | 22% | January 1, 2023 to December 31, 2023 |
0% | 10% | On or after January 1, 2024 |
Residential Federal Tax Credit | Business Federal Tax Credit | For Systems Installed |
26% | 26% | January 1, 2020 to December 31, 2022 |
22% | 22% | January 1, 2023 to December 31, 2023 |
0% | 10% | On or after January 1, 2024 |
*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.
State Incentives
Several states and local utilities offer additional electric vehicle and solar incentives for customers, often taking the form of a rebate. Most rebates can either be claimed after purchase or reflected as a reduction in the price of your purchase for solar systems, while tax credits are claimed when filing income taxes.
Many states also offer non-cash incentives for electric vehicles, such as Carpool lane access in California and free municipal parking.
  | Electric Vehicles | Solar & Energy Storage |
All states | 26% federal income tax credit (subject to phase out schedule above) | |
Arizona | Reduced Vehicle License Tax and Carpool lane access | Solar: Up to $1,000 state tax credit |
California |
$2,000 or $4,500 rebate (based on income eligibility) for Model 3 and Model Y* $5,000 grant (based on income eligibility)* *Review eligibility prior to applying $1,500 California Clean Fuel Reward for all new electric vehicles registered in California |
Solar: Select utilities may offer incentives Powerwall: see California Self-Generation Incentive Program (SGIP) |
Colorado | $2,500 tax credit for purchase of a new vehicle $1,500 tax credit for lease of a new vehicle |
Select utilities may offer a Solar incentive |
Connecticut | $1,500 rebate for new vehicles with a base price under $42,000 Exemption from state emissions testing Reduced vehicle registration fee |
Solar: Up to $300 per kW PTC |
Delaware | $2,500 rebate for new vehicles with a purchase price under $60,000 | Select utilities may offer a Solar incentive |
Florida | Funding may be available for home charging installation assistance | |
Hawaii | Carpool lane access and reduced rates for electric vehicle charging | Solar: State tax credit equal to the lesser of 35% of actual system cost or $5,000 per 5 kW |
Idaho | State exemption from vehicle inspection & maintenance program | |
Illinois | EV exemption from state emissions testing; reduced registration fees | Earn $1,000 per kW off the cash or loan price of solar panels, and $860 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC) |
Louisiana | $2,500 income tax credit | |
Maine | $2,000 rebate for new vehicles with a base price under $50,000 | |
Maryland | $700 rebate on wall connectors and installation Qualified vehicles are exempt from emissions testing HOV lane access |
Solar: $1,000 per system Solar: Earn $170 per kW off the cash or loan price of solar panels and $140 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC) Powerwall: State tax credit equal to 30% of installed cost up to $5,000 per property |
Massachusetts | $2,500 rebate for new vehicles with a purchase price under $50,000 | Solar: Up to $1,000 State Tax Credit Solar: Select utilities may offer a solar incentive Powerwall: Select utilities may offer a storage incentive |
Nevada | Reduced rates for electric vehicle charging AFV Parking Fee & state emissions testing exemptions |
Powerwall: Up to $3,000 |
New Hampshire | Solar: Earn $100 per kW off the cash or loan price of solar panels and $80 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC) | |
New Jersey | Sales tax exemption 10% discount on off-peak toll prices on NJT & GSP through EZ-Pass |
Solar: Earn $720 per kW off the cash or loan price of solar panels and $600 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC) |
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 State emissions testing exception |
Solar: Up to $350 per kW and up to $5,000 state tax credit |
North Carolina | State emissions testing exemption & HOV lane access | |
Pennsylvania | Solar: Earn $90 per kW off the cash or loan price of solar panels and $80 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC) | |
Oregon | Standard Rebate of $2,500 for purchase or lease of Model 3 and Model Y Charge Ahead rebate of $2,500 for purchase or lease of new or used Tesla for eligible customers |
Solar: $300 per kW up to $2,400 |
Rhode Island | State emissions testing exemption | Solar: Earn $100 per kW off the cash or loan price of solar panels and $80 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC) |
Texas | Solar: Select utilities including Austin Energy ($2,500 residential rebate) may offer a Solar incentive | |
Utah | Solar: Up to $1,600 state tax credit | |
Vermont | Depending on income level, up to $5,000 rebate for purchase or lease of a new vehicle with a base price under $40,000 | Solar: $0.02 per kWh production incentive for 10 years |
Washington | A retail sales tax reduction is available on the purchase or lease of a new vehicle. | |
Washington DC | Excise tax exempt Reduced vehicle registration fees Tax credit for 50% of costs of home charging installation, up to $1,000 |
Solar: Earn $930 per kW off the cash or loan price of solar panels and $780 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC) |
All states |
Solar: 26% federal income tax credit (subject to phase out schedule above) |
Arizona |
Electric Vehicle: Reduced Vehicle License Tax and Carpool lane
Solar: Up to $1,000 state tax credit |
California |
Electric Vehicle:
$2,000 or $4,500 rebate (based on income eligibility) for Model 3 and Model Y* $5,000 grant (based on income eligibility)* *Review eligibility prior to applying $1,500 California Clean Fuel Reward for all new electric vehicles registered in CaliforniaSolar: Select utilities may offer incentives |
Connecticut |
Electric Vehicle: $1,500 rebate for new vehicles with a base price under $42,000 Exemption from state emissions testing Reduced vehicle registration fee Solar: Up to $400 per kW PTC |
Colorado |
Electric Vehicle: $2,500 tax credit for purchase of a new vehicle $1,500 tax credit for lease of a new vehicle Solar: Select utilities may offer a Solar incentive |
Delaware |
Electric Vehicle: $2,500 rebate for new vehicles with a purchase price under $60,000
Solar: Select utilities may offer a Solar incentive |
Florida |
Electric Vehicle: Funding may be available for home charging installation assistance |
Hawaii |
Electric Vehicle: Carpool lane access and reduced rates for electric vehicle charging
Solar: State tax credit equal to the lesser of 35% of actual system cost or $5,000 per 5 kW |
Idaho |
Electric Vehicle: State exemption from vehicle inspection & maintenance program |
Illinois |
Electric Vehicle: EV exemption from state emissions testing; reduced registration fees
Solar: Estimated $1,030 per kW |
Louisiana |
Electric Vehicle: $2,500 income tax credit |
Maine |
Electric Vehicle: $2,000 rebate for new vehicles with a base price under $50,000 |
Maryland |
Electric Vehicle:$700 rebate on wall connectors and installation Qualified vehicles are exempt from emissions testing HOV lane access Solar: $1,000 per system |
Massachusetts |
Electric Vehicle: $2,500 rebate for new vehicles with a purchase price under $50,000
Solar: Up to $0.128 per kWh production incentive for 10 years |
Nevada |
Electric Vehicle: Reduced rates for electric vehicle charging AFV Parking Fee & state emissions testing exemptions Powerwall: Up to $3,000 |
New Jersey |
Electric Vehicle: Sales tax exempt 10% discount on off-peak toll prices on NJT & GSP through EZ-Pass Solar: Solar Renewable Energy Credits (SREC) offers $0.55 per Watt off the cash or loan price of solar panels and $0.46 per Watt off the cash or loan price of Solar Roof |
New York |
Electric Vehicle: $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 State emissions testing exception Solar: Up to $350 per kW and up to $5,000 state tax credit |
North Carolina |
Electric Vehicle: State emissions testing exemption & HOV lane access
Solar: Up to $350 per kW and up to $5,000 state tax credit |
Oregon |
Electric Vehicle: Standard Rebate of $2,500 for purchase or lease of Model 3 and Model Y Charge Ahead rebate of $2,500 for purchase or lease of new or used Tesla for eligible customers Solar: $400 per kW up to $3,200 |
Pennsylvania |
Solar: Earn $90 per kW off the cash or loan price of solar panels and $80 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC) |
Rhode Island |
Electric Vehicle: State emissions testing exemption
Solar: $900 per kW up to $7,500 |
Texas |
Solar: Select utilities including Austin Energy ($2,500 residential rebate) may offer a Solar incentive |
Utah |
Solar: Up to $1,600 state tax credit |
Vermont |
Electric Vehicle: Depending on income level, up to $5,000 rebate for purchase or lease of a new vehicle with a base price under $40,000
Solar: $0.02 per kWh production incentive for 10 years |
Washington |
Electric Vehicle: A retail sales tax reduction is available on the purchase or lease of a new vehicle. |
Washington DC |
Electric Vehicle: Excise tax exempt Reduced vehicle registration fees Tax credit for 50% of costs of home charging installation, up to $1,000 |
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.
Above solar incentives apply to eligible residential customers. 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.
Local & Utility Incentives
Some communities and utility companies also offer additional incentives through cash back, discounted rate plans and other credits:
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Learn more about Powerwall incentives here.