The Texas Commission on Environmental Quality (TCEQ) has opened applications for the Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP), a new initiative under the Texas Emissions Reduction Plan (TERP). The program aims to encourage Texans to purchase or lease new light-duty vehicles powered by electricity, hydrogen fuel cells, compressed natural gas (CNG), or liquefied petroleum gas (LPG).
Grants of up to $2,500 are available for eligible electric drive and hydrogen fuel cell vehicles, while grants of up to $5,000 are offered for qualifying CNG and LPG vehicles. The program is open to individuals as well as various legal entities, including corporations and government agencies. To qualify, applicants must register and operate their vehicle in Texas for at least one year.
Eligible vehicles must be new, not previously owned, and meet light-duty requirements with a gross vehicle weight rating of 10,000 pounds or less. All vehicles must appear on TCEQ’s official Eligible Vehicle List.
Applicants can only submit after taking possession of the vehicle. Vehicles cannot receive incentives from other TERP programs. There is a cap of 1,000 grants for CNG and LPG vehicles combined, and 2,000 grants for hydrogen fuel cell or electric drive vehicles under this program.
Detailed eligibility information and application instructions are available on the LDPLIP webpage. Applications will be processed on a first-come, first-served basis until March 6, 2026 at 5:00 p.m. CST or until funds run out.
Information about additional emission reduction initiatives managed by TCEQ can be found at www.terpgrants.org or by contacting TCEQ directly via phone or email.
“Grants are available statewide for those who purchase or lease an eligible new light-duty motor vehicle on or after Sept. 1, 2025, and who applied for or acquired title and registration of the vehicle in Texas.”
“The LDPLIP provides grants for eligible Texans who purchase or lease new alternative fuel vehicles. The program is designed to incentivize the use of vehicles powered by electricity or alternative fuels to improve air quality in the state.”
