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Tax Incentives

Federal incentive ($1875 Income Tax Credit) until 12/31/19

​The Federal Income Tax Credit is one of the most talk about benefit, keep in mind that only purchase (cash and loan) can claim this tax credit, leasing would not qualify. The chances are if you can afford a Tesla, your income is high enough that you will have at least $1875 income tax liability. In the case you don’t, if you do a Google search you will find numerous way to increase your federal tax liability, but the most common way seems to be converting traditional IRA to Roth IRA.

Remember the full $7,500 credit is already gone as you must take delivery of your Tesla by 12/31/2018, Current incentive has dropped to $1,875 until 12/31/2019 and after that there will not be any more federal tax credit unless the law was changed.

​https://www.tesla.com/support/incentives
 
Here is a simple federal tax liability calculator:
 
https://www.calcxml.com/calculators/federal-income-tax-calculator
 
Remember, you should always consult your tax advisers concerning the tax credit for your particular situation.

State and Local incentives

​State’s incentives vary by state and Tesla keep the most up-to-date information on their website.
https://www.tesla.com/support/incentives

In California, you can apply for a rebate at California Clean Vehicle Rebate Project.
https://cleanvehiclerebate.org/eng/eligible-vehicles
 
All Tesla are eligible for $2500 rebate, but the California program does have an income limit that’s based on gross annual income. The following is the income limit after November 1, 2016. If you exceed the income limit you would still be able to obtain clean air decal but not the rebate.
 
$150,000 for single filers
$204,000 for head-of-household filers
$300,000 for joint filers

To search for federal, state and local incentives go to Office of Energy Efficiency & Renewable Energy
https://energy.gov/eere/electricvehicles/electric-vehicles-tax-credits-and-other-incentives
 
You should also look at your electric utility provider and air quality management board website for incentives.
 
One of the newest providers that provide rebate is Southern California Edison, which provide $1000 rebate per EV.
https://www.scecleanfuel.com/
 
There are local incentives on EV charging station, keep in mind that usually actual charging equipment like the Tesla Wall charging needed to be installed. The cost of electrical wiring and city permit will not qualify for rebate. Therefore, if you install a NEMA 14-50 and used the Universal Mobile Connector Bundle you would not qualify as the UMC is included in the price of your Tesla. 
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