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You are here: Home / About the TCEQ / Funding Opportunities / Heavy-Duty Motor Vehicle Purchase or Lease Incentive Program

Heavy-Duty Motor Vehicle Purchase or Lease Incentive Program

Information about financial incentives (rebates) covering the costs for the purchase or lease of new heavy-duty motor vehicles to comply with more-stringent standards for the emissions of nitrogen oxide (NOx) than those required by federal law.

This program implements a portion of the Texas Emissions Reduction Plan (TERP), established in 2001 by Senate Bill (S.B.) 5, 77th Texas Legislature. The TCEQ provides financial incentives (rebates) covering the incremental costs for the purchase or lease of new heavy-duty motor vehicles certified by the United States Environmental Protection Agency (EPA) to comply with more stringent standards for the emissions of nitrogen oxide (NOx) than those required by federal law.

Due to current funding limitations, this program is currently not accepting applications for incentives.

Who is eligible for this funding opportunity? This program began in August 2002. The heavy-duty motor vehicle must have a gross vehicle weight rating (GVWR) of 10,000 pounds or more, and must be purchased or leased on or after August 1, 2002. A limited amount of incremental costs can be reimbursable for each eligible heavy-duty motor vehicle certified by the EPA to specified NOx standards that exceed those ordinarily required, regardless of the fuel used to power the engine. The amount of the incentive will depend upon the emissions standards met, the cost of the new vehicle, and the cost of an equivalent diesel-powered vehicle that meets the baseline federal standards. More information on the emissions standards are contained in the program guidelines. Cost reimbursements will be offered statewide, subject to the availability of funding. Vehicles purchased or leased under this program must be registered in Texas and used within the state a minimum of 75 percent of the vehicle's annual mileage.

How may I obtain an application form?

You may view and download copies of the TERP Guidelines for the Incentive Program to Purchase or Lease New Heavy-Duty Motor Vehicles (RG-390) from the TERP Web page.

What program is the contact for more information? Contact the TERP program staff at 512/239-1757.