Texas Starts $2,500 Plug-In Incentive, Tesla Model S Not Eligible
Earlier this week we reported that the Texas Commission on Environmental Quality was in the process of finalizing the state’s $2,500 electric vehicle rebate program.
We can now report that the program is now live, and qualifying plug-in vehicles can now receive the $2,500 incentive.
So if you live in Texas and have been holding off on that big electric vehicle purchase…go get it!
“The LDPLI is currently accepting applications for the purchase or lease of new eligible vehicles powered by compressed natural gas (CNG), liquefied petroleum gas (LPG), or electric drive (plug-in).”
As for the timeline, the credit is available to the first 2,000 applicants.
“Applications will be accepted on a first-come, first-served basis until June 26, 2015, at 5:00 p.m., or until all funding is awarded, whichever occurs earlier.”
As expected the Tesla Model S has been excluded from the cars eligible for the credit due to the company’s direct sales model. The plan’s documentation (which can be found here) more than clearly defines why the Model S is off the list; stopping just short of mentioning the company by name.
1.6 REQUIREMENTS – Additional criteria that apply are discussed below.
a. The vehicle must be purchased or leased from a licensed new vehicle dealer or leasing company in Texas. Vehicles purchased directly from the manufacturer or an out-of-state dealer not licensed to sell or lease new vehicles in Texas are not eligible for a rebate.
To check out what plug-in cars are “eligible” in Texas for the credit, the full list can be found in PDF format here. Other specifics on the program are as follows:
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 maximum 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.
One thing Texas did wisely do is pro-rate the credit amount as it is applied inside a lease depending on the term length…so we won’t have a credit situation like Georgia where the full amount (up to $5,000 in that case) can be deducted from very short term leases.
While ‘nearly free’ lease rates are great for individuals who manage to get them as electric vehicle’s falling MSRPs reduce the cost of capitalization, the absurdity of the transaction ultimately threatens the ongoing status of state-based credit programs.
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.
Hat tip to Josh!