The state of Texas has expanded its incentive program for electric vehicles to include several Tesla models after snubbing the EV maker last year.

The Model 3, Model Y, and Model S now benefit from a rebate of up to $2,500 through the state's 'Grants for Alternative Fuel Vehicles and Conversion Systems' program.

According to the Texas Commission on Environmental Quality (via X user @anuarbekiman), the program's goal is to promote the adoption of EVs in the state by providing financial incentives to encourage buyers to switch to greener transportation options.

The rebates are available for up to 2,000 applicants, so if you're a Texas resident interested in buying an EV – or a plug-in hybrid, the program also includes those – you should probably hurry up.

The state is accepting applications for grant rebates until March 22, 2024, according to the Texas Commission on Environmental Quality's website, but available spots will probably run out before that date since only 2,000 grants will be awarded.

The list of eligible vehicles features a wide range of battery-electric and plug-in hybrid vehicles, including pretty much every BEV on sale in the US. New additions to the list include all Tesla Model 3 and Model Y trim variants, and the base Model S.

 

The Texas EV rebate program is available to individuals as well as corporations, organizations, governments, governmental agencies or any other legal entity.

Eligible vehicles include cars and small- or medium-sized trucks with a gross vehicle weight rating of 10,000 pounds or less. The vehicles must be purchased or leased new and operate on compressed natural gas, liquified petroleum gas (propane), hydrogen fuel cell, or electric drive (plug-in or plug-in hybrid).

Application forms and instructions can be found on the Texas Commission on Environmental Quality website.

The fact that Texas has expanded its incentive program is significant for EV enthusiasts in the state, as it allows them to benefit from financial support when buying popular Tesla models.

The move is also notable given Texas' somewhat rocky relationship with Tesla so far. Although the EV maker has its headquarters and a major factory in the state, Texas still imposes a ban on direct vehicle sales, which affects Tesla. The carmaker has to bypass this ban by selling its cars through a franchise, dealer or third-party retailer.

In addition, the state hasn't granted state funding for EV charging infrastructure to Tesla, despite the US automaker offering more cost-effective options for EV charging infrastructure. It remains to be seen if the inclusion of Tesla EVs in Texas' rebates program is a sign that the Lone Star State is starting to look more favorably on the world's largest EV maker.

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