Texas $2,500 Rebate Finally Set To Go Live!

MAY 13 2014 BY JAY COLE 18

Texas Gets Their Own State Incentive Program For EVs Very Shortly

Texas Gets Their Own State Incentive Program For EVs Very Shortly

It seems like when it comes to plug-in vehicles in Texas, nothing is ever quite as smooth as we would like.

Such was the case with the state’s $2,500 electric vehicle rebate program; it was announced, but the finalized specifics of the program and the start date seemed to be in limbo for an extended period of time.

Thankfully, with the 83rd Texas Legislature enacting Senate Bill 1727 and the TCEQ (Texas Commission on Environmental Quality) also adopting the incentive program at the end of April, the only thing left to do is get the promotional materials ready and draft a release.

ETA on the program going live?  “This grant round is expected to open within the next few weeks”

The Texas Commission on Environmental Quality (TCEQ) Posted This Note About The Incentive Program Recently

The Texas Commission on Environmental Quality (TCEQ) Posted This Note About The Incentive Program Recently

Some program specifics

Just A 4 kWh Battery And The Ability To Plug-In Is All This Is Need To Get The Full Rebate!

Just A 4 kWh Battery And The Ability To Plug-In Is All This Is Need To Get The Full Rebate!

If the vehicle is powered by an electric drive it must:

  • have four wheels;
  • have been manufactured for use primarily on public streets, roads, and highways;
  • have not been modified from the original manufacturer’s specifications;
  • have an unloaded vehicle weight of no more than 8,500;
  • have a minimum top speed of at least 55 miles per hour; and be propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of at least 4 kilowatt hours and can be recharged from an external source of electricity.

To be eligible for the entire $2,500 rebate inside a lease, the term must be at least 48 months; otherwise it is prorated – 25% for 1 year, 50% for 2 years, 75% for 3 years.  The incentive is capped at 2,000 vehicles per annum.

And yes, as expected the Tesla Model S will not be eligible to receive this rebate as the program clearly states it is intended for “manufacturers of light-duty motor vehicles intended to be sold or leased in Texas,” of which Tesla can not with their current direct-sales dealership model having been banned in the state.

We will keep our eye on the program and report back when it goes live.

(Hat tip to Josh!)

Categories: General

Tags: , ,

Leave a Reply

18 Comments on "Texas $2,500 Rebate Finally Set To Go Live!"

newest oldest most voted
David Murray

I’ve heard this may be retroactive to those who bought an EV already this year. Can anyone confirm that?

Mint

The fact that Tesla is ineligible is very interesting. This could actually be enough for Tesla to consider having an independent dealer.

The dealer could mark up the sale price $1500, Tesla would still sell to the dealer for the same price as it’d sell online, and after rebate the buyer would save $1000 by purchasing from the dealer.

At the same time, it’d sneakily drive home the point about how dealers take savings away from consumers.

Aaron

Somehow I don’t think Tesla buyers will be swayed by $2500 on the $100,000 purchase. 😉

Mint

You mean they’d pass on a $1000 savings and the ability to take a test drive, while also going through the hassle of registering a car purchased outside Texas because…? It’s fun wading through bureaucracy? Out of principle?

Buying a Tesla in Texas is a joke:
http://jalopnik.com/how-texas-absurd-anti-tesla-laws-turn-car-buying-into-1451492195

liberty

You are spreading misinformation. You can test drive the cars in texas, tesla just can’t call it part of the sale. You can register your car in texas. Its a bad law, but not at all that hard as you make out.

Mint

I didn’t say it’s hard. I said it’s a hassle.

http://www.teslamotors.com/advocacy_texas
“galleries cannot offer test drives”

You have to do registration yourself. You have to get plates yourself. You have to pay sales tax separately. You have to arrange financing out of state. You have to call California to arrange a test drive. You have to price yourself.

If there was an independent dealer, all these little hassles are taken care of, just like when you buy a normal car.

Big Solar

I would.

QCO

It is important to note the LDPLI program itself does not exclude Tesla. LDPLI applies to eligible new vehicles sold or leased in Texas.

It is the franchise law that prevents Tesla from selling or leasing a vehicle in Texas, therefore Tesla cannot take advantage of the LDPLI program by default.

If the franchise law changes to allow Tesla to direct sell in Texas, and there is some effort under way to do that, then the LDPLI program would apply to Tesla without changes.

In Texas, it’s all about the changing the franchise law.

“from a battery that has a capacity of at least 4 kilowatt hours”
——–

LOL.. you’re welcome PiP. Maybe this means it’s going to become available in Texas.

QCO

Toyota just made the announcement about move their headquarters from California to Plano, Texas (Dallas area).

Would have been more surprising if Prius was excluded…

David Murray

I hope it does become available in Texas. But Toyota has shown no interest in selling it here. They seem to be jumping on their hydrogen bandwagon (that is headed towards the nearest cliff to fall off of) and so they seem to have little interest in selling more plug-in vehicles.

Mint

If Toyota or Hyundai does succeed in getting cost down to, say, $500/kW (which is still way too high for a FCEV to compete), they’ll make a killing in the power market. It could rival their vehicle revenue.

It will replace all peaker plants, and we’ll have cheap H2 electrolysis-based grid storage. Solar City will buy them from Toyota to get people off the grid. There will be a huge market for indoor backup power for servers and other critical equipment.

Fuel cells will change the world long before they’re found in even 1% of cars, just like high density batteries will take over smartphones long before they’re found in EVs.

It’s economics.

“To be eligible for the entire $2,500 rebate inside a lease, the term must be at least 48 months; otherwise it is prorated”

Maybe Georgia should adopt this provision to their EV law so that people are leasing “free” Leafs?

So the rebate is essentially $52 per month over a 48 month lease. A great deal for someone leasing a Smart EV.

Is there anything stopping an existing dealer from getting a small fleet of Tesla Model S’s and leasing them out?
A guaranteed $2500 rebate (from TX), and a guaranteed residual value (from Tesla) make for a low risk leasing proposition.

Curious how Texas treats registration and (1st) titling of a Model S bought by a Texas resident? Usually a vehicle is considered new until it is titled.

If the rebate is for “manufacturers of light-duty motor vehicles intended to be sold or leased in Texas” are manufactures obligated to federal taxes based on the credit? Or is the owner, or the dealer the receiver of the rebate?

David Murray

That’s an interesting question.

Big Solar

yeah, I would like to hear an answer for that one myself…..

Jason

Do we know when this is going to go live? Are we talking days/weeks/months?