Texas EV incentives, tax credits and rebates

Current EV incentives in Texas

Texas is pretty light on EV incentives. Beyond the pair at the federal level, 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.

So let’s explore the EV purchase incentives first before discussing what rebates your local utilities company may offer on a Level 2 charger install.

Electric vehicle purchase incentives in Texas

Texas residents may qualify for up to one city, one state and two federal incentives when purchasing an electric vehicle as of October 2024.

Let’s start at the federal level and then zoom in from there.

• The federal EV tax credit offers a tax credit on new and used EVs of up to $7,500 and $4,000, respectively. Individuals must make below $150,000 to qualify for the new incentive and $75,000 to qualify for the pre-owned incentive, though the income limits are higher for heads of household and married couples filing jointly.

For more details — and a list of vehicles that qualify for full or partial credit -— check out our full feature on how the EV tax credit works.

Now, let’s look at EV purchase incentives that are specific to Texas:

• The Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP) offers a $2,500 grant for eligible individuals and businesses purchasing a new light-duty EV, plug-in electric vehicle (PHEV) or hydrogen cell vehicle, and the list of eligible vehicles is extremely broad, encompassing virtually every EV made since 2022.

The drawback to LDPLIP, however, is that the program only awards 2,000 grants annually, so it’s fiercely competitive.

“I submitted mine the day they started accepting applications (10/23), but haven't heard back yet,” wrote one Ford F-150 Lightning owner on Reddit.

Others had better luck. “I submitted mine on November 13 of last year and [the] check came in about 2 weeks ago.” wrote another.

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.

Residents of Denton may also qualify for the city-level EV incentive:

• The Residential GreenSense Energy Efficiency Rebate Program offers residents of Denton, Texas, a hearty selection of rebates on various green upgrades to homes and businesses. In addition to cashback on a smart thermostat, HVAC tune-up and solar installation, the city may also offer up to $1,500 back on the purchase of an EV or e-bike.

Finally, you may also qualify for two incentives at the federal level.

• The Plug-In Electric Drive Vehicle Tax Credit offers up to two $3,750 tax credits on new EV purchases: one for vehicles made from minerals mined in the U.S. or a list of free-trade partners and one for vehicles with batteries assembled in North America.

  The vehicles must also cost below $55,000 ($80,000 for trucks, vans, SUVs and crossovers) and the applicant must make below $150,000 annually ($225,000 as head of household or $300,000 if married and filing jointly).

• The Previously-Owned Clean Vehicle Tax Credit offers up to a $4,000 tax credit on select pre-owned, single-owner EVs sold for under $25,000. The applicant must also make below $75,000 annually ($112,500 as head of household, $150,000 if married and filing jointly).

Here’s a quick chart summarizing all four EV purchase incentives that you may qualify for as a Texas resident:

Since you may want to charge your new EV at home, let’s now have a look at EV charging incentives currently available to residents of Texas.

» LEARN: What are tax credits?

EV charging equipment incentives in Texas

In total, Texas residents may qualify for one of 11 EV charging incentives. Most are provided by local utility companies and they can put a nice dent in the cost of installing a Level 2 charger at home.

If you don’t see your home energy provider on this list, we suggest visiting your current provider’s website and seeing what EV or charging incentives it may have available.

Lastly, for a point of reference, J.D. Power estimates that it may cost between $1,200 and $2,500 to install a Level 2 charger at your home.

How much can EV incentives save you in Texas?

Residents of Texas can save up to $10,000 on the purchase of a new EV, $4,000 on the purchase of a used EV and roughly $800 on the cost of installing a Level 2 charger at home.

That means you could purchase a certified pre-owned Chevy Bolt that includes a warranty — and have a Level 2 charger installed at home — for a combined price of below $17,000 (before tax, registration and other fees).

And you won’t have to visit the pump anytime soon, either.

So even though Texas is overall light on EV incentives compared to other states, incentives from the federal government combined with rebates from your local utility provider can still make owning an EV — and charging it at home — highly affordable in the Lone Star State.

Example savings with Texas EV incentives