Battery electric vehicles, plug-in hybrids and fuel cell vehicles are eligible for $2,500 rebates, in addition to any federal tax incentives. Fleet vehicles are exempted, but the rebate applies to personal cars whether they're purchased or leased. In addition to incentives for electric vehicles, Texas is offering $5,000 rebates for purchases of vehicles powered by compressed natural gas (CNG) or liquified petroleum gas (LPG).
As we previously reported, though, Tesla buyers will be excluded from the program. It's only available through franchise dealerships, and Texas is one of the few remaining states that doesn't allow Tesla to sell cars directly to customers.
The state has set aside more than $7.3 million for the program. It will provide rebates for up to 2,000 EVs (including FCEVs) and 1,000 natural gas vehicles, or until funding runs out. Last time around, potential customers left money on the table, with 1,896 of the 2,000 EV rebates — and just 10 percent of natural gas rebates — claimed.
Dallas News points out that to help encourage EV adoption, proponents are urging Texas to use up to $31 million in settlement money from the Volkswagen diesel scandal to pay for the construction of electric vehicle charging stations. Charging infrastructure could help reduce range anxiety, a major obstacle to EV sales.