Current EV incentives in Texas
Texas is light on EV incentives. There’s just one at the state level (limited to 2,000 applicants per year) and one for residents of Denton, Texas.
That being said, many Texas-based utility companies offer sizable rebates on home charger installs, so the overall cost of purchasing an EV — and keeping it charged at home — can still come down substantially for you.
Electric vehicle purchase incentives in Texas
As of May 2026, Texas residents may qualify for up to one city and one state incentive when purchasing an electric vehicle. The federal EV tax credit for certain new and used EVs only applied to vehicles purchased through Sept. 30, 2025.
- The Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP) offers a $2,500 grant to eligible individuals and businesses purchasing a new light-duty EV, plug-in electric vehicle (PHEV) or hydrogen cell vehicle. The list of eligible vehicles is extremely broad, encompassing virtually every EV made since 2022.
- The Residential GreenSense Energy Efficiency Rebate Program offers Denton, Texas, residents a wide range of rebates for green home and business upgrades. The city may offer up to $1,000 back on the purchase of an EV and 50% back (up to $750) on an electric bike.
The drawback to LDPLIP is that it awards only 2,000 grants annually, making it fiercely competitive. To maximize your chances of securing a $2,500 grant from LDPLIP, you might consider bookmarking the official program page and signing up for email updates.
The drawback of the Residential GreenSense Energy Efficiency Rebate Program is that it’s only available to Denton, Texas, residents, and rebate amounts are limited.
Here’s a quick chart summarizing the EV purchase incentives that you may qualify for as a Texas resident:
| Name | Source | Benefit |
|---|---|---|
| Denton Municipal Electric Residential GreenSense Energy Efficiency Rebate Program | City (Denton) | Up to a $1,000 rebate (limited to city residents) |
| Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP) | State | Up to a $2,500 grant (limited to 2,000 recipients annually) |
» LEARN: What does an EV warranty cover?
EV charging equipment incentives in Texas
Most EV charging incentives in Texas are provided by local utility companies, and they can put a nice dent in the cost of installing a Level 2 charger at home.
You can also qualify for the federal tax credit, which offers up to a 30% tax credit on a Level 2 charger installation with a $1,000 maximum. Note that this incentive expires on June 30, 2026.
If you don’t see your home energy provider on this list, we suggest visiting your current provider’s website to see what EV or charging incentives it offers.
For reference, J.D. Power estimates that the cost of purchasing and installing a Level 2 charger at your home could range from $700 to $2,500, depending on whether you already have a 240-volt outlet.
| Incentive source | Level 2 charger installation rebate* |
|---|---|
| Guadalupe Valley Electric Cooperative | 50% up to $600 |
| United Cooperative Services | 50% up to $250 |
| Farmers Electric Cooperative | 50% up to $500 |
| Southwestern Electric Power Company (SWEPCO) | Up to $250 |
| Entergy Texas | Up to $250 per port |
| Austin Energy | 50% up to $1,200 |
| Alternative Fuel Vehicle Refueling Property Tax Credit | Up to a 30% tax credit ($1,000 maximum) |
How much can EV incentives save you in Texas?
EV incentives in Texas are limited in 2026, and most savings come from a small state rebate (if funding is available) and local utility programs, not large purchase incentives.
- Up to $2,500 on a new EV through the state’s LDPLIP, when funding is open
- $0 for used EV purchases (no statewide incentives currently available)
- $250 to $1,200 for a Level 2 home charger, depending on your utility provider
- Up to $1,000 in federal tax credits for charger installation (only in eligible locations)
That means incentives in Texas are more likely to reduce the cost of charging equipment than the vehicle itself. In most cases, they won’t significantly lower the purchase price of a new or used EV on their own.
FAQ
Does Texas have rebates for electric vehicles?
Texas has only one statewide electric vehicle grant program, with a limit of 2,000 grants per year. If you qualify, you can get up to a $2,500 grant for purchasing a new light-duty EV, plug-in electric vehicle (PHEV) or hydrogen cell vehicle. In terms of rebates, only Denton, Texas, offers up to a $1,000 rebate on EV purchases to city residents.
Does Texas have tax credits for new electric vehicles?
No, Texas does not offer state tax credits for new electric vehicles. The federal EV tax credit also expired for most new purchases after September 30, 2025, so it’s no longer available for vehicles bought after that date.
Does Texas have tax credits for used electric vehicles?
No, Texas does not have state tax credits for used electric vehicles, and the federal EV tax credit expired for most used EV purchases after September 30, 2025.
Does Texas have tax credits for home charging equipment?
Yes, electric vehicle owners in Texas can qualify for local utility company tax credits in addition to the federal tax credit for charging equipment.
Do extended warranties cover electric vehicles?
Most extended warranty providers offer limited coverage for electric vehicles. Some exclude EVs entirely, while others cover basic components but leave out key EV parts like the traction battery, drive unit or high-voltage systems.
That said, coverage options are improving. A growing number of providers now offer EV-specific or EV-inclusive plans, though protection for major components, such as the battery, is still less common and often comes with stricter terms.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- DSIRE, “Programs.” Accessed April 27, 2026.
- J.D. Power, “How Much Does It Cost To Install An EV Charger?” Accessed April 27, 2026.
- City of Denton, "Sustainability Incentives." Accessed April 27, 2026.
