Tesla Tax Credits

Tax Deductions For Tesla: Incentives, Rebates And Credits

Do you own or are considering purchasing a Tesla? We’re going to cover some of the income tax deductions & other incentives that are available for this model.

Some states (like California) give you a $2,500 tax rebate. Other states, like Hawaii, give you access to the carpool lane and reduced costs on charging.

All of these and more, including tax credits for both Federal & State as well as mileage deduction credits will be outlined below.

Tesla Tax Credit

Tesla’s purchased in or after 2010 may be eligible for a federal income tax credit of up to $7,500. Really, though, it’s any electric vehicle, not just Tesla. If you’d like to look at all of the electric vehicles & plug-in hybrids that qualify for federal tax credits, just use this link.

If you’re considering purchasing a new Tesla there’s a recent update that you need to be aware of. Introduced in the latest GOP bill the electric vehicle tax deduction of $7,500 is slated to expire.

What does this mean for those looking to buy electric vehicles after 2017? Well, if the bill as it is currently written passes and becomes law the $7,500 tax credit will be gone.

StateIncentive
Federal (All States)$7,500 Income Tax Credit
ArizonaReduced vehicle licensing tax, carpool (HOV) lane access, reduced rates for Electric Vehicles.
California$2,500 Income Tax Credit (Based on specific income eligibility)
Connecticut$3,000 Income Tax Credit for vehicles under $60,000.
Colorado$5,000 Income Tax Credit
Delaware$1,000 tax rebate for a new Tesla over $60,000; $3,000 tax rebate for new Tesla models under $60,000.
HawaiiCarpool (HOV) lane access; reduced rates for charging.
Louisiana$2,500 Income Tax Credit
Maryland$3,000 Excise Tax Credit for new vehicles under $60,000;
$700 rebate on wall connectors and installation.
Massachussetts $1,000 rebate for new Tesla models over $60,000; $2,500 rebate for new Tesla models under $60,000
NevadaCarpool lane access; reduced rates for charging.
New JerseySales tax exemption
New York$500 rebate for new Tesla Models over $60,000; $2,000 rebate for new Tesla models under $60,000
Oregon$750 rebate on wall connectors and installation; higher for commercial use.
Pennsylvania$1,750 rebate for new Tesla models at or below $50,000
Washington D.C. Excise tax exempt

Average Range Of A Tesla (MPGe By Model)

We all know that electric vehicles, including Tesla, get phenomenal MPGe (electric miles per gallon) but just how good are they?

Here’s a breakdown of the MPGe for each 2017 Tesla Model.

Vehicle PhotoMake/ModelFuel Economy
2017 Tesla Model 32017 Tesla Model 3: Long Range (Automatic)Combined: 126 MPGe
City: 131 MPGe
Highway: 120 MPGe
Electric: 27kwh/100 miles
2017 Tesla Model S2017 Tesla Model S AWD - 60D (Automatic)Combined: 104 MPGe
City: 101 MPGe
Highway: 107 MPGe
Electric: 32kwh/100 miles
2017 Tesla Model S2017 Tesla Model S AWD - 75D (Automatic)Combined: 103 MPGe
City: 102 MPGe
Highway: 105 MPGe
Electric: 33kwh/100 miles
2017 Tesla Model S2017 Tesla Model S AWD - P100D (Automatic)Combined: 98 MPGe
City: 92 MPGe
Highway: 105 MPGe
Electric: 35kwh/100 miles
2017 Tesla Model S2017 Tesla Model S AWD - P90D (Automatic)Combined: 95 MPGe
City: 92 MPGe
Highway: 100 MPGe
Electric: 35kwh/100 miles
2017 Tesla Model S2017 Tesla Model S (60 kW-hr battery pack)Combined: 99 MPGe
City: 98 MPGe
Highway: 101 MPGe
Electric: 34kwh/100 miles
2017 Tesla Model S2017 Tesla Model S (75 kW-hr battery pack) AutomaticCombined: 104 MPGe
City: 102 MPGe
Highway: 107 MPGe
Electric: 32kwh/100 miles
2017 Tesla Model S2017 Tesla Model S AWD - 90D (Automatic)Combined: 102 MPGe
City: 101 MPGe
Highway: 102 MPGe
Electric: 33kwh/100 miles
2017 Tesla Model S2017 Tesla Model S AWD - 100D (Automatic)Combined: 93 MPGe
City: 91 MPGe
Highway: 94 MPGe
Electric: 36kwh/100 miles
2017 Tesla Model X2017 Tesla Model X AWD - 60D (Automatic)Combined: 126 MPGe
City: 131 MPGe
Highway: 120 MPGe
Electric: 36kwh/100 miles
2017 Tesla Model X2017 Tesla Model X AWD - 75D (Automatic)Combined: 103 MPGe
City: 91 MPGe
Highway: 95 MPGe
Electric: 36kwh/100 miles
2017 Tesla Model X2017 Tesla Model X AWD - 90D (Automatic)Combined: 92 MPGe
City: 90 MPGe
Highway: 94 MPGe
Electric: 37kwh/100 miles
2017 Tesla Model X2017 Tesla Model X AWD - P90D (Automatic)Combined: 89 MPGe
City: 89 MPGe
Highway: 90 MPGe
Electric: 38kwh/100 miles
2017 Tesla Model X2017 Tesla Model X AWD - P100D (Automatic)Combined: 86 MPGe
City: 81 MPGe
Highway: 92 MPGe
Electric: 39kwh/100 miles

How To Track Your Mileage Deductions For A Tesla 

Now we get to the fun stuff! You know about the federal income tax credits for electric vehicles and some of the state credits/incentives, but did you know that you can also deduct the IRS standard mileage rate for all of your business, charity & moving trips that you do each year?

If you’re an Everlance user, you already know this, but if you’re not – check this out!

Using Everlance is as easy as downloading the app (iOS or Android), signing up and letting us do the rest. Seriously, it’s that simple.

How Everlance Works

Everlance uses GPS to automatically track your mileage. You don’t need to do a single thing. Every time you complete a drive you are prompted to swipe left or right, for “business” or “personal” and each drive is then classified, the mileage is added up and the amount you can deduct will be listed.

If you check out the above image you can see what we mean, Everlance does everything for you. All you have to do is drive. Everlance will calculate the mileage, your deduction and even map out your path so you can easily determine if this was a business trip or personal trip.

Even better, Everlance also tracks expenses and revenue! You can track receipts by simply taking a picture. We store it in the cloud for as long as you need it and you’ll always have a record of your receipts.

It’s not just receipts, though. You can manually enter expenses you incur at any time or you can link your bank account to Everlance and we’ll find the expenses for you!

The same goes for revenue. Let’s say you’re a freelance photographer and you’re on a business trip. You can of course deduct your mileage and expenses, however that’s not the full picture. You should be adding your revenue as well so you can a true profit & loss statement for each trip.

When it comes time to do your taxes you simply export the data and upload it to your favorite tax software. It’s really that easy.

What Does Everlance Cost?

For most people Everlance is free. If you take less than 30 trips per month it costs nothing to use the features. For those that travel more, such as Uber/Lyft drivers and need the full-functionality on a day-to-day basis you’ll only spend $60 per year, or essentially $5.00/month.

Are you ready to give Everlance a try? Download it for free from the App Store or Google Play Store!

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