Federal Tax Credit
The Federal Tax Credit will apply to the cost of the solar portion of Solar Roof as well as the cost of Powerwall. The incentive amount is equivalent to a percentage of the eligible costs. The rate is currently set at 26% in 2021 and 2022, and 22% in 2023*. To qualify for the Federal Tax Credit in a particular year, the eligible solar equipment must be installed by December 31st of that year.
How can I estimate the portion of my Solar Roof that could receive the tax credit?
Your Solar Roof Purchase Agreement provides an estimated allocation of components that may be eligible for a tax credit. This estimated allocation is not intended as tax advice; you should discuss this allocation with a tax professional (for the purposes of IRS Form 5695) to determine the appropriate tax credit amount in your circumstance.
*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.