State and federal incentives for electric car buyers


The state of Texas began offering incentives for all-electric and plug-in hybrid car buyers in 2013. The Legislature passed a revised program effective September 2018.
It offers a $2,500 after-purchase rebate to buyers who apply for the program administered by the Texas Commission on Environmental Quality. The deal ends May 31, 2019, or earlier if the maximum 2,000 rebates are awarded.
New cars purchased or leased from Texas dealers for personal use are eligible, but not fleet vehicles (used cars from rental agencies, governments, dealerships or other similar owners).
Tesla buyers are not eligible for the program because those cars are not directly sold to customers by dealerships franchised in the state. After Teslas are viewed at the company’s “galleries” in Texas, buyers order the cars online and they are shipped to Texas with a California registration.
A federal tax credit of $2,500 to $7,500 also is available to purchasers of new electric vehicles in every state. The amount is based on each vehicle’s battery capacity and the gross vehicle weight rating. Dealers can help buyers calculate the available tax credit.

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