Tesla Lease Incentives 2026

Federal Incentives

🇺🇸 Federal EV Tax Credit

$7,500

For leases, the federal tax credit goes to Tesla (as the lessor). Tesla uses it to lower your monthly payment. You don't file for it on your taxes.

How it affects your payment: The $7,500 credit reduces your monthly payment by about $50-80 depending on the model and term.

State Incentives

Many states offer additional rebates for EV leases. Here are the top programs for 2026:

California

$1,000–$2,000

CVRP rebate

Colorado

$2,500

Tax credit

Connecticut

$2,250

CHEAPR

Massachusetts

$3,500

MOR-EV

New Jersey

$2,000–$4,000

Charge Up

New York

$500–$2,000

Drive Clean

Oregon

$2,500

State rebate

Vermont

$3,000

MileageSmart

View all state incentives →

Utility Company Incentives

Many electric utilities offer rebates for EV leases. These are often stackable with state incentives.

Utility	Service Area	Rebate	Notes
PG&E	Northern CA	$800	Income-qualified available
SCE	Southern CA	$1,000	Pre-approval required
SDG&E	San Diego	$1,000	Point-of-sale discount
Xcel Energy	CO, MN, NM	$1,500–$3,500	Varies by state
National Grid	MA, NY, RI	$1,000	For residential customers
Con Edison	NYC area	$500	Plus charging equipment

Sales Tax Exemptions

NJ, WA, OR

No sales tax on EVs

$40-50/mo

Typical savings

Several states offer sales tax exemptions for EV leases:

New Jersey: No sales tax on EV leases (saves ~$40/month on Model 3)
Washington: No sales tax through July 2025 (saves ~$45/month)
Oregon: No state sales tax at all
Maryland: $3,000 excise tax credit

When to Apply

Before delivery

Pre-approval: Some utility rebates require pre-approval before you take delivery. Check program rules.

At signing

Point-of-sale: Some state rebates (NJ, MA, NY) are applied at signing as a discount.

After delivery

Rebate applications: Most state rebates (CA, CO, etc.) require you to apply after taking delivery.

Income-Qualified Programs

💰 Enhanced Incentives

Several states offer increased rebates for low-to-moderate income households:

California: Clean Cars 4 All — up to $9,500 with trade-in
Massachusetts: MOR-EV+ — additional $2,500 for income-qualified
New York: Drive Clean rebate increased for low-income
Colorado: Additional $2,500 for income-qualified

How Incentives Work on Leases

📋 Important Distinction

For leases, incentives work differently than purchases:

Federal credit: Goes to Tesla, reflected in your payment
State rebates: May go to you or Tesla — varies by state
Utility rebates: Usually go to you after delivery
Sales tax exemptions: Applied at signing, lower monthly payment

Real-World Example: Maximizing Incentives

California resident leasing a Model 3 RWD

Base lease payment (all-in): $564/mo

Federal credit (built-in): Already reflected

CVRP rebate ($1,500): -$42/mo over 36 months

PG&E rebate ($800): -$22/mo

Net effective payment: $500/mo

Frequently Asked Questions

Do I get the $7,500 tax credit on a Tesla lease?

No — Tesla receives the credit and uses it to lower your monthly payment. You don't file for it on your taxes.

Can I combine state and federal incentives?

Yes. Federal credit is built into the lease, and state rebates can be combined (depending on program rules).

Which state has the best Tesla lease incentives?

California, New Jersey, and Massachusetts consistently rank highest due to rebates plus sales tax exemptions.

Do utility rebates apply to leases?

Usually yes. You apply after taking delivery. Check your utility's specific rules.

When should I apply for state rebates?

Some require pre-approval, most are after delivery. Check each program's timeline — funds can run out.

Sources: IRS, DSIRE database, state energy office websites, utility company EV pages. Current as of March 2026. Incentives subject to change and funding availability.