Texas EV incentives center on a state grant of up to $5,000 for a new battery-electric vehicle through the Light-Duty Motor Vehicle Purchase or Lease Incentive Program, along with utility rebates from providers like Austin Energy and CPS Energy and a federal tax credit for home charger installation that runs through June 30, 2026. The federal $7,500 new-EV and $4,000 used-EV tax credits ended on September 30, 2025, so the state grant, utility programs, and charger credit are what’s left. Texas also charges an extra registration fee on electric vehicles that reduces the net benefit.
The $5,000 State Grant for Battery-Electric Vehicles
The main state incentive is the Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP), administered by the Texas Commission on Environmental Quality under the Texas Emissions Reduction Plan.1Texas Commission on Environmental Quality. Texas Emissions Reduction Plan Statutory grant amounts are $5,000 for a battery-electric vehicle and $10,000 for a hydrogen fuel cell vehicle.2State of Texas. Texas Health and Safety Code Chapter 386 – Section 386.154 Grant Amounts
One important limit: the grant cannot exceed the price difference between the clean vehicle and a comparable gasoline or diesel model. Lower-priced EVs may receive less than the full $5,000.2State of Texas. Texas Health and Safety Code Chapter 386 – Section 386.154 Grant Amounts
Who and What Qualifies
To be eligible, the vehicle must be new, purchased or leased from a dealership, and have a gross vehicle weight rating of 10,000 pounds or less. It must run on battery-electric, plug-in hybrid, hydrogen fuel cell, compressed natural gas, or liquid petroleum gas power, and it must be titled and registered in Texas.3Texas Commission on Environmental Quality. Grants for Alternative Fuel Vehicles and Conversion Systems Individuals, businesses, government agencies, and other legal entities can apply. There is no income limit.
Only vehicles on the TCEQ’s approved list qualify. If a model you’re considering isn’t on the list, TCEQ directs buyers to contact the program office and asks manufacturers to submit information for review.3Texas Commission on Environmental Quality. Grants for Alternative Fuel Vehicles and Conversion Systems
Funding Runs Out. Check Before You Buy.
LDPLIP works on a first-come, first-served basis inside each fiscal year’s funding round. When the money is gone, later applications sit without any guarantee of payment. As of 2026, the program is not accepting applications for the FY26 grant round.3Texas Commission on Environmental Quality. Grants for Alternative Fuel Vehicles and Conversion Systems New rounds typically open in the fall, when the state fiscal year starts on September 1. Verify the current status on TCEQ’s LDPLIP page before you assume a grant is available.
How to Apply for the State Grant
When a funding round is open, pull together your Vehicle Identification Number (on the dashboard near the windshield or on the driver-side door jamb), the signed purchase or lease agreement showing the transaction date and total cost, your current Texas vehicle registration receipt, and a valid Texas driver’s license.
The application is TCEQ Form 20684, available on the LDPLIP page.3Texas Commission on Environmental Quality. Grants for Alternative Fuel Vehicles and Conversion Systems The owner’s name must match exactly across the application, the purchase agreement, and the title. Mismatched VINs, model years, or names are a common reason applications get rejected.
Mail the completed packet to:
TCEQ TERP Program, MC-204
P.O. Box 13087
Austin, Texas 78711-3087
Use a tracked service so you have proof of delivery, and keep copies of everything. Review typically takes about 60 to 90 days before a check is issued.
The Federal $7,500 and $4,000 EV Credits Are Gone
Dealership websites and older guides still reference the New Clean Vehicle Credit (Section 30D), the Previously-Owned Clean Vehicle Credit (Section 25E), and the Qualified Commercial Clean Vehicle Credit (Section 45W). All three ended for vehicles acquired after September 30, 2025, repealed by the One Big Beautiful Bill signed on July 4, 2025.4Internal Revenue Service. Clean Vehicle Tax Credits Don’t build any federal vehicle credit into your budget for an EV bought after that date.
Federal Home Charger Tax Credit (Through June 30, 2026)
The Alternative Fuel Vehicle Refueling Property Credit under Section 30C survived the 2025 repeal. For a charger placed in service at your main home between January 1, 2023, and June 30, 2026, you can claim 30% of the cost as a tax credit, up to $1,000 per charging port. The 30% applies to hardware and installation labor combined.5Internal Revenue Service. Alternative Fuel Vehicle Refueling Property Credit
There is a geographic catch. Your home has to be located in either a low-income community census tract or a non-urban census tract. Look up the 11-digit 2020 Census Tract GEOID for your address and check it against the IRS table of eligible tracts; the Department of Energy also provides an online locator.5Internal Revenue Service. Alternative Fuel Vehicle Refueling Property Credit Many rural and suburban Texas areas qualify. Much of urban Dallas, Houston, and Austin may not. Confirm before you count on the credit.
Claim it on IRS Form 8911 for the tax year you placed the charger in service, and hold on to the receipts.
Utility Rebates That Stack on the State Grant
Several Texas utilities offer their own EV incentives. Utility programs change often, so verify current terms with your provider before you commit.
Austin Energy
Austin Energy’s Power Partner EV program pays a $50 bill credit for enrolling a qualifying Level 2 charger or a qualifying vehicle, appearing on your bill within one to two billing cycles after approval.6Austin Energy. Power Partner EV
The larger benefit is the home charger rebate, which covers 50% of the cost to buy and install a qualified Level 2 (240-volt) home charging station. The cap is $1,200 if you enroll in Power Partner EV, or $900 for chargers or vehicles that aren’t compatible with the program. You get one rebate per EV purchase or lease.7Austin Energy. Home EV Charger Rebate Combined with the federal 30C credit for an eligible census tract, that recoups a large share of a home charger installation.
CPS Energy
CPS Energy in San Antonio rewards off-peak charging rather than the purchase itself. Its FlexEV Off-Peak Rewards program pays a one-time $50 bill credit for signing up and agreeing to charge during off-peak hours. Limit peak-hour charging (Monday through Friday, 4:00 p.m. to 10:00 p.m.) to no more than twice a month, and you earn an additional $10 credit each month, up to $170 per year with the sign-up bonus.8CPS Energy. Electric Vehicles – EV Charging Solutions
Other Providers
Oncor, serving much of the Dallas–Fort Worth area, publishes EV information on its website, with program details that vary. If your provider isn’t listed here, check its site directly; more Texas utilities are adding time-of-use rates and charger incentives. Most residential programs ask for an account in good standing and proof of charger specifications or vehicle registration, and rebates often appear as bill credits within one to two billing cycles.
The Texas EV Registration Fee That Offsets Your Savings
Texas charges electric vehicle owners an extra registration fee on top of standard registration. The first registration on a new EV costs an additional $400, covering the initial two-year period. Every renewal after that adds $200 per year.9Alternative Fuels Data Center. Electric Vehicle (EV) Registration Fee The fee was created by Senate Bill 505 in the 88th Legislative Session and took effect on September 1, 2023.10Texas Department of Motor Vehicles. New Registration Fee for Electric Vehicles Begins September 1, 2023
Over five years, that’s $1,200 in EV-specific registration fees ($400 up front, then $200 for each additional year). Factor it into any calculation that compares the state grant, utility rebates, and charger credit against the real cost of owning the vehicle.