FEDERAL AND STATE INCENTIVES & OFFERS
Federal Tax Credit for New & Used Electric Vehicles
A federal tax credit is available for new and used electric vehicles that meet requirements specified in Internal Revenue Code Section 30D.
New Vehicle Clean Credit up to $7,500.
You may qualify for a credit up to $7,500 if you buy a new, qualified plug-in EV between 2023 to 2032. Under certain conditions between a dealership and a seller, "leasing" a vehicle may allow the purchase to be treated as a "commercial vehicle," thus making it eligible for the full tax credit without satisfying some of the strict program eligibility requirements. Be sure to inquire with the dealership and a tax professional when researching purchase options.
Used Vehicle Clean Credit up to $4,000.
Beginning January 1, 2023, if you buy a qualified used electric vehicle (EV) from a licensed dealer for $25,000 or less, you may be eligible for a used clean vehicle tax credit. The credit equals 30% of the sale price up to a maximum credit of $4,000. Additional Details.
The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.
Starting in January 2024, an Inflation Reduction Act provision allows consumers to transfer the tax credit to car dealers, reducing the purchase price of eligible new and used vehicles at the time of sale.
New Vehicle Clean Credit up to $7,500.
You may qualify for a credit up to $7,500 if you buy a new, qualified plug-in EV between 2023 to 2032. Under certain conditions between a dealership and a seller, "leasing" a vehicle may allow the purchase to be treated as a "commercial vehicle," thus making it eligible for the full tax credit without satisfying some of the strict program eligibility requirements. Be sure to inquire with the dealership and a tax professional when researching purchase options.
Used Vehicle Clean Credit up to $4,000.
Beginning January 1, 2023, if you buy a qualified used electric vehicle (EV) from a licensed dealer for $25,000 or less, you may be eligible for a used clean vehicle tax credit. The credit equals 30% of the sale price up to a maximum credit of $4,000. Additional Details.
The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.
Starting in January 2024, an Inflation Reduction Act provision allows consumers to transfer the tax credit to car dealers, reducing the purchase price of eligible new and used vehicles at the time of sale.
- Consult your tax adviser to make sure you qualify
- Tax credit amount varies based on vehicle details
- Restrictions apply, subject to change without notice
Incentive Information
Electric Vehicle Federal Tax Incentive up to $7,500
Federal Tax Credit for Electric Vehicle Charging Equipment up to $1,000
If you install qualified vehicle refueling and recharging property at your home, including electric vehicle charging equipment, you may be eligible for a credit of up to $1,000 for each item of property.
- Consult a tax professional to see if your installation qualifies
- Visit IRS website for additional information
Incentive Information
Federal Tax Credit up to $1,000 for residential charging equipment
AirCheck Texas: Income-Dependent Electric Vehicle Vouchers [CLOSED]
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This program is currently; closed, please visit the AirCheck Texas website for additional details.
AirCheck Texas is offering an EV purchase incentive to lower income Texas residents. If you’re retiring an older vehicle, you may be eligible for $3,500 towards your new (even used) vehicle purchase, tax free!
AirCheck Texas is offering an EV purchase incentive to lower income Texas residents. If you’re retiring an older vehicle, you may be eligible for $3,500 towards your new (even used) vehicle purchase, tax free!
- Applies to both plug-in or plug-in hybrid vehicles.
- Vehicles to be replaced must be registered in the program counties.
- Replacement sedans/SUVs must be 2016 or newer; trucks must be 2017 or newer.
- Income restrictions apply, ranging from $36,420 for single person households to over $100,000 for households of six or more.
- The value of the replacement vehicle may affect eligibility requirements and/or benefits for financial assistance programs, such as Temporary Assistance for Needy Families (TANF).
Texas State Electric Vehicle Rebate [Expired]
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The Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP) provides rebate incentives statewide to persons who purchase or lease an eligible new light-duty motor vehicle powered by electric drive (plug-in or plug-in hybrid). The eligible rebate amounts are listed below. Rebate amounts are subject to change and availability, please check with TCEQ before purchasing a vehicle.
- Purchase or Lease (three-year or longer term): $2,500
- Lease (two-year to less than three-year term): $1,665 (66.6%)
- Lease (one-year to less than two-year term): $832.50 (33.3%)
- The latest application period has ended. Applications may no longer be submitted for funding consideration.