Texas EV Rebates, Incentives, and Tax Credits

If you live in the state of Texas and are considering making the switch to EVs and/or are interested in installing a level 2 EV charger at home for added convenience, you may be wondering what Texas EV rebates, charging incentives and tax credits exist?

In the following guide, we’ll take a closer look at EV rebates, charging incentives, and tax credits in the state of Texas to optimize your transition and maximize savings.

Texas EV Rebates

While Texas currently doesn't have statewide EV rebates for buying or leasing, there are still great ways to save money when driving electric. While statewide incentives aren't currently available, things could change. Texas periodically introduces new incentive programs aimed at boosting EV adoption and charging infrastructure. Always stay informed by regularly checking official resources such as:

By taking advantage of some of the existing Texas EV rebates, charging incentives and special EV electricity rates, you’ll find that switching to electric can put real money back in your pocket.

Federal EV Tax Credits: Up to $7,500 for New Vehicles

Texas doesn't have a state income tax, meaning state tax credits for EV purchases aren't available. However, Texans can still access valuable federal tax credits:

Clean Vehicle Tax Credit: You might qualify for up to $7,500 when buying a new EV. Eligibility depends on several factors, including your income level, battery size, and the vehicle manufacturer’s compliance with critical minerals and battery component guidelines.
Used Clean Vehicle Credit: If you're looking into buying a used EV, there's also a federal tax credit worth up to $4,000, depending on your income and the vehicle’s age and price.

To fully understand your eligibility for these credits, we strongly recommend talking with a tax professional or CPA who can give you personalized guidance. You can also visit the IRS Electric Vehicle Credit page for more information.

Vehicle Emissions Inspection Exemption

Another great perk that started on September 1, 2023, is that Texas exempts fully electric vehicles from the annual vehicle emissions inspection requirement. This exemption applies only to vehicles powered exclusively by electricity, so hybrid vehicles don’t qualify.

For details on emissions requirements, visit the Texas Department of Public Safety website.

Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP)

Managed by the Texas Commission on Environmental Quality (TCEQ), the LDPLIP provides grants for purchasing or leasing new light-duty motor vehicles powered by alternative fuels, including electricity. Eligible applicants include individuals, corporations, organizations, and governmental entities who purchase or lease an eligible new light-duty motor vehicle on or after September 1, 2023, and have applied for or acquired title and registration of the vehicle in Texas. As of April 2025, the program is currently closed, but it's essential to stay updated on future funding opportunities. For the most current details, visit the TCEQ website.

Texas EV Rebates and Charging Incentives - Recent Developments

In January 2025, Austin Energy secured a $15 million grant from the U.S. Department of Transportation to expand electric vehicle charging infrastructure, with a focus on equity and accessibility. This funding aims to enhance equitable access to EV charging while advancing the city’s sustainability and mobility goals.

Local Texas EV Charging Incentives

Even without a statewide rebate, many Texas utility providers offer attractive rebates and incentives to help you set up EV charging at home or your business:

Austin Energy

If you're in Austin, there's good news: Austin Energy offers rebates for installing Level 2 home charging stations. You can receive a rebate covering 50% of your equipment and installation costs, up to a maximum of $1,200 if the station meets Open Charge Point Protocol (OCPP) standards. For chargers that aren't OCPP-compliant, you could still get up to $900 back.

Businesses in Austin aren’t left out either—Austin Energy provides commercial rebates of up to $5,000 per charging station installed to support workplace and public EV charging infrastructure. You can check out all the details and how to apply on their official Austin Energy EV Charging page.

CPS Energy (San Antonio)

In San Antonio, CPS Energy has a great program called FlexEV Rewards. By installing an eligible Level 2 home charger and agreeing to allow occasional adjustments during peak energy times, you'll get a one-time $250 credit on your bill. You’ll also see an additional monthly $5 credit as long as you remain enrolled. Visit the CPS Energy FlexEV page for full details.

Make sure to contact your local utility company—other areas in Texas may also offer similar rebates or incentives.

Special Electric Vehicle Charging Rates

You can also save money on charging your EV by taking advantage of special electricity rates. Many Texas utility providers offer time-of-use (TOU) charging rates, meaning you pay less if you charge your EV during off-peak hours—usually overnight. This can significantly reduce your monthly electricity bill.

For example, Austin Energy and CPS Energy both offer these discounted TOU rates specifically aimed at EV drivers. Check with your local electricity provider to find out if they offer similar rates and programs.

Check out this resource for more on how to save when charging your EV.

Home Energy Electrification Incentives In Texas

Texas homeowners now have access to significant financial support for energy efficiency upgrades, thanks to funding provided by the Inflation Reduction Act.

Texas has allocated $346 million specifically toward rebates for home efficiency improvements and an additional $344 million aimed at home electrification projects. Eligible upgrades include energy-efficient appliances, insulation improvements, air sealing, heat pump installations (for both space heating and water heating), and smart electrical panel upgrades needed for these enhancements.

Combining electric vehicle (EV) ownership with additional electrification efforts—such as installing solar panels, battery storage systems, or heat pumps—can significantly increase your savings and reduce your home's environmental footprint.

In Texas, you might also find additional home electrification incentives offered by local electricity providers, complementing the federal incentives available.

Battery Storage Incentives

At the moment, Texas does not offer state or local utility incentives specifically for battery storage systems. However, homeowners can still benefit from the federal Residential Clean Energy Tax Credit (25D), which offers a 30% tax credit for battery storage installations with a minimum capacity of 3kWh.

Electrical Panel Upgrade Incentives

The federal Energy Efficient Home Improvement Tax Credit (25C) provides homeowners and renters a tax credit for upgrading their home's electrical panels. Eligible upgrades, required for supporting electrification measures such as heat pump water heaters and HVAC heat pumps, can qualify for a credit of up to 30% of project costs, capped at $600.

Learn more about potential electrical panel upgrades and costs when brining level 2 charging to your home.

To qualify, electrical panels must comply with National Electric Code (NEC) standards and support a minimum load capacity of 200 Amps. While the panel itself must handle 200 Amps, your home doesn't need to have 200 Amps coming from the utility. Smart electrical panels that meet these load requirements are also eligible.

Expert EV Charging Installation in Texas – ChargerPro

While EV adoption continues to grow in Texas and with the state deploying charging infrastructure through grants and other projects, EV charging is becoming more accessible.

If you’re considering purchasing an EV and want to bring charging to your home, ChargerPro can help. We offer expert level 2 charging installation by licensed electricians to ensure a safe and reliable experience so you can maximize your EV ownership and experience.