$2,500 State-Level Plug-In Vehicle Incentive Returns In Texas


It’s has been quite some time since Texas killed its $2,500 rebate for plug-in electric car purchases in 2015.


Texans get more incentives to buy a new plug-in vehicle!

But now, the incentive has been revived by state lawmakers at the biennial session last week, and when combined with the $7,500 federal tax credit, the two incentives will make plug-ins even more affordable.

“The rebates are part of a state initiative known as the Texas Emissions Reduction Program, which offers a variety of grants and incentives to encourage technologies and practices that promote cleaner area.”

Currently there is around 16,000 plug-in cars on the roads in Texas.

Just like the first go ’round, the rebate is available only for cars sold in Texas, and because direct sales are forbidden, Tesla will not benefit until they open a franchise dealership.

source: Houston Chronicle

Category: General

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40 responses to "$2,500 State-Level Plug-In Vehicle Incentive Returns In Texas"
  1. Rhaman says:

    A positive news item from Texas? A welcome change!

  2. cab says:

    Ironically, this could negatively impact EV sales here in Texas in the short term. The details haven’t been announced and this includes when it will take effect. One poster on another forum indicated he called and was told “September” time frame. I know if I was in the market and had some flexibility to wait, I would definitely do so – $2500 is “real” money.

    If Bolt, Volt, i3, Leaf and other prospective EV buyers needed another incentive (no pun intended) to hold out and see what the Model 3 has to offer, they just got one. At that point, if they still prefer something other than the Model 3, they get $2500!

    1. DJ says:

      Pffft, you must be wrong because many people on this very forum claimed yesterday (or the day before??) that a tax credit, or not, wouldn’t influence their buying decision. Heck, supposedly a lot of people who even are in the market to buy an EV don’t even know about the rebates!

      1. David Murray says:

        You’re probably right. Most people don’t know. And the dealers have no reason to tell people about it.

        1. Josh Bryant says:

          Last time we had the rebate in Texas. I was explaining it to the salespeople I know about it. They had no idea about the rebate or how it worked. Since we don’t have state income tax, buyers can’t claim it through that method.

          The dealer needs to fill out the paperwork for the buyer, so most people won’t get it unless they are prepared and insistent.

          The last time the rebate was available for two years or until the budget ran out. Sadly the budget ran out first.

          1. Texas FFE says:

            No you’re wrong. The budget never did run out. There was still over 2 million of the seven million left at the end of the program and that was with a time extension .

            1. Josh Bryant says:

              Yep. Typo on my part. Meant to say didn’t run out.

              Thanks for correcting

        2. Dav8or says:

          Dealers absolutely have a reason to educate people about the rebates and credits! To make a sale of an expensive vehicle, or to up sell options and trim levels. Whatever it takes to get a buyer to rationalize spending more. State rebates and tax credits are a great way to do this.

          1. mx says:

            They have an incentive in sales.
            Wonder why than…

  3. Texas FFE says:

    I got the last rebate and I’ve been pushing TCEQ for information on the new rebate but so far nothing. I’m concerned that the dealers in Texas will take advantage of the rebate by price gouging like they did in Colorado. I’m thinking of going out of state to get a Bolt where dealers are offering $3,000+ off MSRP and then bringing it back to get the Texas rebate.

    1. unlucky says:

      I can’t see how that’s possible. If you can’t buy a Tesla out of state and bring it in and get the rebate why do you think you could do it for a Bolt?

      1. Texas FFE says:

        Good point. You might be able to qualify for the rebate when a “dealer” signs off on the rebate and you pay state sales taxes on the car. Anyway I don’t think I’ll do anything until the rebate is actually available.

        1. unlucky says:

          The article says the rebate is available on cars “sold in Texas”. Well, if the Bolt is sold in Texas maybe it qualifies even if yours wasn’t bought in Texas.

    2. Nix says:

      The good thing about the Colorado rebate is that you can purchase out of state and still qualify for the rebate. You don’t have to buy from a Colorado dealership.

      Although if you do buy from a Colorado dealership, you can have the rebate applied as a point-of-purchase credit to bring down the price instantly. And you don’t have to wait to file taxes. You also don’t have to pay sales taxes on the point-of-purchase credit. The downside is that dealers can charge a processing fee if you do point-of-purchase.

    3. Aj says:

      What’s the process to claim it. Are there forms available online that dealership should sign.

  4. QCO says:

    It’s in SB 1731, which technically isn’t signed yet by the governor. Hard to believe he wouldn’t, but this is Texas where the most critical piece of 2017 legislation (which requires an emergency session recall) is a bathroom bill!

    It is limited to 2000 rebates, so there might be a bit of a scramble. It would take TCEQ a few months to get organized, so unlikely to see it before September, same as last time.

    1. Texas FFE says:

      The governor has already came out in favor of the bill so I’m not worried about it getting signed. There was also a cap on the 2014 rebate but the cap was never reached. I don’t think people that actually know about the rebate will have much getting the rebate this time either.

      I didn’t know about the 2014 rebate when I bought my 2015 Fusion Energi but did get the rebate later. The big problem was that the dealers were absolutely clueless about the rebate. I actually found out about the new rebate from a Bolt dealer so maybe the dealers, at least the Bolt dealers, will be better informed this time around.

      1. QCO says:

        Agreed most dealers were clueless last time.

        But I suspect the manufacturers know and will ensure there are no manufacture rebates or other internal incentives while rebates are out there.

        You might still get a better price in California, without the Texas rebate. The manufacturers don’t get a CARB credit in Texas, so not as keen on pushing them here as in California. Sad.

        1. Mark.ca says:

          “It is limited to 2000 rebates”
          If that is correct then this is not going to last long anyway…2 months at best with the Leaf2 and M3 coming.

          1. Texas FFE says:

            You would think but that’s probably not going to be the case. Many EV buyers will probably never find out about the rebate until it’s too late. The M3 may not even be eligible for the rebate since it’s not going to be sold though dealerships.

            During the 2014 rebate the local Electric Automobile Association didn’t even know about the rebate And even after a time extension there was a lot of money left on the table for rebates. One thing though, with the Bolt becoming available about the same time as rebate, sales of the Bolt should be really strong in Texas for the next year or so.

          2. =j says:

            Oh, its more complicated than that. Because the TX ledge never makes things easy. It is 2000 rebates per biennium until the biennium that we reach the target for ground level ozone (i.e. never).

            To further complicate things, the rebate applies to all vehicles purchased after 01 SEP 2013. The TEQC has the option to change that date to a later date. I hope they do because you can expect a deluge of rebate claims in the first part of August in every odd numbered year from now until… forever?

  5. Texas FFE says:

    I’ve talked to a few dealers around the country about buying a Bolt and bringing it to Texas. A couple of times I thought I was getting close to pulling the trigger then the dealer found a way to boost the price up a few grand. I’m now afraid that when the Bolt makes it here to Texas the dealers here are going to play the same bait and switch games.

    Maybe I’m too price sensitive but I don’t like the idea of people around the country getting great deals that I can’t get. Anyway, I’m willing to wait for the right deal to come my way. Maybe we will get some overstocked dealers here in Texas soon that are willing to cut prices or maybe I’ll just wait until I can pick up a deal on a low mileage used Bolt like I did with my FFE.

  6. JackDFW says:

    I leased my 2015 for 3 yrs and got a $1,875 for the state of Texas.

    The $2,500 was on purchases or 4 yr leases.

    For 2 or 3 yr leases the rebate was pro-rated.

    It was great but when I got a 1099-G in the mail before tax time and had pay income taxes on the rebate.

    Still a great deal but I was not expecting the 1099.

    I just bought a 2017 Leaf last month with the Nissan 10K rebate and wish I could have got the new Texas rebate also.

    I am surprised the rebate came back considering this is a oil/republican state.

    Part of the rules on last rebate was you had to buy from a Texas auto dealer.
    So Tesla was excluded.

    1. QCO says:

      Ouch! Didn’t know it was taxable! Are you sure?

      That combined with sales tax on the pre-rebate price certainly diminishes the rebate value (and any incentive to buy).

      1. JackDFW says:

        Yes , I got the 1099-G to prove it….

    2. Aj says:

      Which part of Texas has $10k rebate. I can’t find anything around Houston.

      Btw, rebate is comes into effect once bill is signed or at later date.

      1. JackDFW says:

        Exclusive Savings for Houston, Austin and Dallas / Ft. Worth Area EVgo Customers
        $10,000 Fleetail Savings + $7,500 Tax rebate.

        Nissan is offering EVgo customers $10,000 off a new LEAF®

        For EVgo customers only at participating Houston, Austin and Dallas / Ft. Worth Nissan dealers.

        See EVgo web site for more info

        1. =j says:

          I never could get a dealer to recognize that one. When did it expire?

  7. (⌐■_■) Trollnonymous says:


    We know how deep NADA is up Texas’s A$$.

    1. David Murray says:

      Ype.. probably the only reason the bill passed is because it was another way to screw Tesla.

      1. Mark.ca says:

        Make no difference why they pass it as long as it will help evs…and besides Tesla’s mission is to spread the use of evs so they should not be complaining.

        1. (⌐■_■) Trollnonymous says:

          Tesla’s mission is to eventually make money. The bill was designed to omit Tesla and favor Stealerships.

          Crony politicians!

  8. Bob Nan says:

    What is the reason for an Oil state like Texas to give rebate to electric vehicles.
    And also exclude Tesla from selling vehicles.

    Probably they want to entice the potential Tesla Model-3 customers to buy some other product.

    1. Josh Bryant says:

      It is part of the clean air program for the state. The big 3 metro areas have local air pollution issues, just like every other big city.


    2. Tom says:

      Well that’s how I know you don’t live there. Texas was also a leader in renewable energy incentives and cooperation. Way back in 2000 when I moved there, you could select that you wanted renewable power as your source. They would then guarantee that they purchased power in that amount as renewable energy. They added $2/month or something to your bill for that. Bear in mind that’s back in the era when solar was several times as expensive as traditional power so the $2 was trivial. It helped them raise awareness with their consumers, prove out demand to policy makes (we have x% of our customers who have opted in and told us it was a priority) and offset costs a little. It was effectively the Green Mountain Energy (from New England) business model but just being done from within the traditional utility setup. So no, Texas is not just full of mouth breathing redneck oil rig workers (which is a bad comment but just using it as example of stereotype). You might be surprised to find several major metropolitan areas with a diverse population ethnically and politically. SXSW anyone?

  9. Josh Bryant says:

    Tesla’ next US factory (Model Y / Truck) will be in Texas, and the direct sales ban will get lifted at the same time. San Antonio just missed in Gigafactory 1.

    1. Don Zenga says:

      What if Texas does not allow direct sales.
      Texas is full of Oil and those interests will never allow.

      Better put up a plant in some state where the government favors and labor is cheap.

  10. Loboc says:

    Orange air pollution day today in DFW.

    I got the last rebate on my ELR. Not too difficult but the dealer was less than clueless.

  11. Texas FFE says:

    I’ve got one comment to make to all the prospective EV buyers in, don’t worry too much about the rebate before you buy your EV. During the last rebate you had something like eighteen months after you bought your car to apply for the rebate. So all of you that just bought an EV in Texas or will do so soon, take heart, you probably will qualify for the rebate.

    But then again I’m just guessing. Who knows when the legislature will actually fund the rebate program? I think I’m going to wait until I at least know what the new rules are.