Molly Ayala
Texas, known for its massive oil fields, offers few state-sponsored incentives for electric vehicles (EVs). However, the state has introduced various initiatives to support the transition to electric cars, including grants, rebates, and tax credits. While Texas does not offer statewide credits or rebates for purchasing used EVs, several utilities provide incentives for EV owners, such as rebates for installing charging stations and reduced off-peak charging rates. Texas also had a rebate of up to $2,500 through the Texas Emissions Reduction Program (TERP) until January 7, 2023. Additionally, Texas businesses can benefit from incentives to install charging stations, and residents can take advantage of federal tax credits for new and used clean vehicles.
| Characteristics | Values |
|---|---|
| State-sponsored credits or rebates for buying a used EV | None |
| Incentives for businesses that want to install charging stations | Yes |
| Rebates from the state for residential installations | No |
| Rebates from utilities | Yes |
| State income tax credits for EVs | No |
| Federal tax credits | Yes |
| State-sponsored credits or rebates for buying a new EV | No |
| Alternative Fuel Vehicles and Conversion Systems grants | Yes |
| Rebates for buying an electric car | Yes ($2,500) |
| Number of rebates available | 2,000 |
| Rebates for charging stations | Yes |
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What You'll Learn
Texas Volkswagen Environmental Mitigation Program (TxVEMP)
Texas, known for its massive oil fields, offers few state-sponsored incentives for electric vehicles. However, the Texas Volkswagen Environmental Mitigation Program (TxVEMP) is one such initiative that provides grants for projects aimed at reducing nitrogen oxides (NOX) emissions in the state.
TxVEMP is administered by the Texas Commission on Environmental Quality (TCEQ), which Governor Greg Abbott selected to manage the funds from the Volkswagen State Environmental Mitigation Trust (Trust). The Trust is the result of a settlement agreement between the United States Environmental Protection Agency (EPA), the State of California, and Volkswagen (VW). VW was alleged to have violated the federal Clean Air Act. As part of the settlement, VW agreed to pay approximately $2.9 billion into the Trust, which will be distributed among the 50 states, the District of Columbia, and Puerto Rico.
TxVEMP offers grants for various projects, including:
- Replacing or repowering eligible diesel-fueled vehicles with all-electric models, along with supporting infrastructure.
- Installing direct current fast charging (DCFC) and hydrogen dispensing equipment for light-duty zero-emission vehicles.
- Replacing or repowering school buses, shuttle buses, transit buses, trucks, and vehicles used for municipal solid waste collection with alternative fuel models.
- Installing Level 2 charging equipment for light-duty zero-emission vehicles.
The grant amounts and eligibility criteria vary for each grant program, and interested parties should refer to the official TxVEMP website for the most up-to-date information. Additionally, while TxVEMP focuses on reducing NOX emissions, Texas also has other programs like the Light-Duty Motor Vehicle Purchase or Lease Incentive Program, which provides grants for purchasing or leasing new vehicles powered by alternative fuels, including electric and plug-in hybrid vehicles.
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Austin Energy rebates
Texas does not have any state-sponsored credits or rebates for buying a used electric vehicle (EV). However, there are some incentives for Texas businesses that want to install EV charging stations, and several utilities offer rebates for EV owners.
Austin Energy, a department of the City of Austin, offers rebates and incentives for electric vehicles and energy efficiency.
Austin Energy provides rebates of up to $1,200 for a newly installed Level 2 charging station for plug-in electric vehicles (PEV). Multi-family properties are also eligible for a rebate of up to 50% of the cost of installing a Level 2 charging station, up to $1,500.
In addition to EV-related rebates, Austin Energy offers a range of residential, commercial, and multifamily rebates and incentives to help customers save money and energy. These include rebates for heating, air conditioning, ventilation, lighting, pools, water heaters, and more.
For a limited time, Austin Energy offered rebates averaging $2,600, plus access to low-interest financing for whole-home energy improvements for houses over 10 years old. They also provide rebates of up to $2,500 for residential solar panel installations.
To learn more about Austin Energy's rebates and incentives, customers can visit the Austin Energy website or call 512-494-9400 or 3-1-1 to speak with a representative.
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Texas Emissions Reduction Program (TERP)
Texas, known for its massive oil fields, offers few state-sponsored incentives for electric vehicles. However, the Texas Emissions Reduction Program (TERP) was one such program that offered rebates of up to $2,500 for eligible vehicles. This program ran until January 7, 2023, and provided grants to help Texans purchase new, cleaner vehicles and equipment, while also removing older, more polluting models from roads, job sites, and fields.
TERP, established in 2001, is a comprehensive incentive program that aims to improve air quality in Texas by reducing nitrogen oxide (NOx) emissions from high-emitting internal combustion engines. The program is administered by the Texas Commission on Environmental Quality (TCEQ) and has distributed over $1.4 billion in grants to cut down on NOx emissions. TERP grants are available for individuals and businesses in industries like trucking, farming, and construction, helping them save money on new, more environmentally friendly equipment.
The eligibility criteria and application processes for TERP grants vary. For instance, grants are offered for the purchase or lease of eligible new light-duty vehicles, such as electric cars or trucks, and are provided on a first-come, first-served basis. Additionally, grants are available for port authorities in select counties to fund studies and pilot programs aimed at reducing NOx and particulate matter (PM) emissions from cargo operations.
While the TERP program offered rebates for electric vehicles until early 2023, Texas residents can still find incentives, rebates, and credits from other sources. For example, Austin Energy offers rebates for the installation of Level 2 charging stations, and some utilities provide incentives for EV owners. Texas also has programs like EV360, which offers reduced off-peak rates for EV charging.
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Federal tax credits
Texas does not have any state-sponsored credits or rebates for buying a used electric vehicle (EV). However, there are federal tax credits available for those who purchase a new or used EV.
The federal government offers tax credits for those who purchase qualifying new or used electric vehicles. The maximum credit is $7,500, which is made up of two separate $3,750 credits, targeting EV battery minerals and EV battery components. The credit is non-refundable, meaning it can lower or eliminate your tax liability, but you won't receive any overage of the credit as a refund.
To be eligible for the credit, vehicles must meet certain requirements. They must be plug-in electric or fuel-cell with at least 7 kilowatt-hours of battery capacity, have a purchase price of $25,000 or less, be at least two years old, and weigh less than 14,000 pounds. Additionally, the vehicle must have its final assembly in North America, with increasing percentages of critical EV battery minerals sourced from the U.S. or a U.S. free-trade partner.
To claim the credit, you can file Form 8936 when filing your federal income taxes. You will need to provide the vehicle's identification number and the date of the transfer election to the IRS. It is important to note that you can only claim this credit once every three years.
While Texas does not have statewide credits or rebates for residential EV charging station installations, several utilities offer rebates and incentives. For example, Austin Energy offers rebates of up to $1,200 for a newly installed Level 2 charging station, and up to $2,500 for residential solar panel installation.
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Local EV charger rebates
Texas is a state known for its oil fields, and there are few state-sponsored incentives for electric vehicles. However, there are some local EV charger rebates and incentives available for residents who want to power their electric vehicles with electricity or solar energy.
The Texas Electric Transportation Resources Alliance (TxETRA) offers 2,000 rebates on a first-come, first-served basis. The program was set to run until January 7, 2023, or until the rebates were depleted. The Texas Emissions Reduction Program (TERP) also offered a rebate of up to $2,500, but this program ended on the same date.
Some utilities in Texas offer incentives for EV owners. For example, Austin Energy provides a rebate of up to $1,500 for a Level 2 charging station and up to $2,500 for residential solar panel installation. The Southwestern Electric Power Company (SWEPCO) offers a rebate of up to $250 for a new Level 2 charger, and United Cooperative Services offers up to $500. These programs tend to change frequently, so it's important to check with your local utility provider for the most up-to-date information.
Additionally, the Texas Department of Transportation (TxDOT) has a competitive grant program under the National Electric Vehicle Infrastructure (NEVI) Program. This program aims to deploy EV charging infrastructure along public roads, creating a well-connected EV network. Texas will receive $407.8 million in funding over fiscal years 2022-2026, with 80% from federal sources and 20% from the state.
The Texas Volkswagen Environmental Mitigation Program (TxVEMP), managed by the Texas Commission on Environmental Quality (TCEQ), also provides grant opportunities for EV charging infrastructure. The program, which opened on June 29, 2023, and will run until August 31, 2025, offers grants for projects that reduce emissions and improve air quality, including the replacement of older, high-emission vehicles with electric alternatives.
While Texas does not have state-sponsored credits or rebates for purchasing a used EV, there are federal tax credits available, such as the clean vehicle tax credit of up to $7,500 for new vehicles and the used clean vehicle tax credit of up to $4,000.
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Frequently asked questions
Texas does not have any state-sponsored credits or rebates for anyone buying a used EV. However, there are incentives available for Texas businesses that want to install charging stations, and there are federal tax credits available for new and used clean vehicles.
The clean vehicle tax credit offers up to $7,500 for new vehicles, and the used clean vehicle tax credit offers up to $4,000. Income restrictions as well as battery component and critical mineral restrictions may apply.
Yes, there are local EV charger rebates and time-of-use charging rates available in Texas. For example, Austin Energy offers up to $1,200 for a newly installed Level 2 charging station, and Southwestern Electric Power Company (SWEPCO) has up to a $250 rebate for a new Level 2 charger.
