⚡ Texas EV Tax Credits: Your 2025 Guide to Big Electric Vehicle Savings
As electric vehicles (EVs) grow in popularity, Texans are looking to cash in on available incentives. While Texas EV tax credits are not offered statewide, there are several programs and rebates in place that can help you save money when buying or leasing an electric vehicle.
This guide breaks down everything you need to know about Texas EV tax credits, including federal savings, state rebates, utility incentives, and how to make your EV investment more affordable.
💸 Federal EV Tax Credit (Up to $7,500)
Update: The Federal EV Tax Credit ends September 30, 2025
Texans can take full advantage of the federal EV tax credit under the Inflation Reduction Act (IRA):
- New EVs: Up to $7,500
- $3,750 for battery component sourcing
- $3,750 for mineral sourcing
- Used EVs: Up to $4,000 or 30% of the purchase price
- Income Limits:
- New EVs: $150,000 (single) / $300,000 (joint)
- Used EVs: $75,000 (single) / $150,000 (joint)
- Point-of-sale option available at authorized dealerships
🔧 Tip: Make sure the vehicle is assembled in North America and meets critical mineral standards to qualify for the full credit.
🏛️ State Rebates: The Texas LDPLIP Program
While Texas EV tax credits don’t exist at the state tax level, there is a rebate program that provides substantial value to EV buyers.
🔋 Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP)
- Rebate Amount: Up to $2,500
- Eligible Vehicles: New battery electric or hydrogen fuel cell vehicles
- Program Status: Expected to re-open in October 2025
- Availability: Limited to 2,000 vehicles per year
- Requirements:
- Vehicle must be registered in Texas
- Applicant must retain ownership for a minimum term
🚨 Act Fast: The program is first-come, first-served and often reaches capacity quickly.
🚗 Unlock EV Rebates & Perks in Texas Cities
🌟 Austin
Utility Incentive: Austin Energy offers a rebate covering 50% of the purchase and installation cost of a Level 2 home charger (up to $1,200)
Federal + Local Grants: Austin received $15 million in federal grants to install 284 public charging stations, enhancing convenience across underserved and multi‑family communities.
City Perks: Austin ranks top nationally in EV readiness and infrastructure
🏙 Dallas–Fort Worth (DFW) Metro
Infrastructure Boost: DFW is adding 100 new EV charging stations using a $15 million federal grant via the North Central Texas Council of Governments .
Utility‑Partner Programs: While no city‑wide charger rebate, Oncor, United Cooperative, Denton Municipal Electric, and other regional utilities may offer infrastructure support or time‑of‑use rates (check local utility offerings)
🌆 San Antonio
Street Parking Incentives: San Antonio allows free street parking for EVs (battery electric and plug‑in hybrids) while actively charging
EV readiness ranking places San Antonio among top U.S. cities for plug‑in infrastructure
🏢 Denton (via Denton Municipal Electric, DME)
Utility Rebate: DME’s GreenSense Program offers up to $1000 rebate for new EV purchases (also available for e‑bikes)
👥 Guadalupe Valley (GVEC service area) – South Texas
Virtual Power Program: GVEC has a partnership with Tesla, allowing customers with home battery systems to participate in ERCOT’s Aggregated Distributed Energy Resources (ADER). Customers may receive rebates at sign‑up and annually for energy participation
Additional Texas Cities With EV Incentives:
🔌 EV Charger Tax Credits and Rebates in Texas
🏠 Residential EV Charger Credit (Federal)
- Credit: 30% of the cost, up to $1,000
- Applies to purchase and installation of a Level 2 charger at your home
- Must be installed by a certified electrician
🏢 Commercial Charging Incentives
- Federal credit: 30% of cost, up to $100,000 per charging unit
- Applies to businesses, apartment complexes, and public charging stations
- Additional funding from the NEVI program for corridor projects
💡 Utility Company EV Incentives in Texas
Several Texas utility providers offer rebates for EVs and charging equipment:
🔌 Austin Energy
- Rebate: Up to $1,200 for Level 2 home charger installation
- Public Charging Network: Offers access to Plug-In EVerywhere plan for a flat rate
🔌 CPS Energy (San Antonio)
- Incentives: Occasional charger rebates and off-peak charging discounts
🔌 Oncor (Dallas/Fort Worth)
- Programs: Supports installation of commercial EV chargers; watch for updates on residential rebates
🚗 EV Registration & Emissions in Texas
- EV Registration Fee: $200 annually (to replace gas tax revenue)
- No emissions test required for EVs in Texas
✅ Final Thoughts: Are Texas EV Tax Credits Worth It?
Yes — even without a traditional Texas EV tax credit, drivers in the Lone Star State can save thousands by leveraging:
- The federal EV tax credit
- State rebate of up to $2,500
- EV charger tax credits
- Utility company rebates
These savings can add up to $10,000 or more, making 2025 an ideal year to go electric in Texas.
Ready to take the wheel of your new EV?
🚙 Check Your EV Tax Credit Eligibility Now →
🔌 Find Home Charger Installers Near You →
