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Light-Duty Motor Vehicle Purchase or Lease Incentive Program

The Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP) provides rebates statewide to persons who purchase or lease an eligible new light-duty motor vehicle powered by compressed natural gas (CNG), liquefied petroleum gas (LPG), or hydrogen fuel cell or other electric drive (plug-in or plug-in hybrid). This website will provide you with useful information about the program, eligibility, and how to apply.

A Program of the Texas Emissions Reduction Plan (TERP)

TCEQ is now accepting applications under the Light-Duty Motor Vehicle Purchase or Lease Incentive Program. Applications will be accepted and awarded on a first-come, first-served basis. Unless the application period is suspended by TCEQ prior to the deadline, applications must be received on the premises of the TCEQ no later than 5:00 p.m., Central Time, January 7, 2023. Only vehicles purchased on or after September 1, 2021 from a dealer licensed to sell or lease vehicles in Texas are eligible. Please review the Notice of Rebates and the for additional eligibility criteria.

Program Information

Funding Information

Natural Gas (CNG or LPG) Rebates Awarded (1000 maximum by statute): 0
Hydrogen or Electric Rebates Awarded (2000 maximum by statute): 0

Contact Information

Robin Habben
800-919-TERP (8377)

How to Apply

Review the following documents before completing and submitting the Application Form (provided in Step 3):

Individuals, corporations, organizations, governments, or governmental subdivisions or agencies, business trusts, partnerships, or any other legal entity.

TCEQ will award LDPLIP grants on a first-come, first-served basis to purchase or lease a new light-duty motor vehicle that operates using the following alternative fuels:

  • compressed natural gas
  • liquified petroleum gas (propane)
  • hydrogen fuel cell
  • electric drive (plug-in or plug-in hybrid)

Grants are available statewide.

Download and complete the Rebate Application and/or Reservation Form

  • Rebate Application
  • Reservation Form: This form is to be completed by the dealer for vehicles placed on order. Please see the reservation criteria at the bottom of the form for conditions of submission and acceptance.

Keep these tips in mind when completing your application:

  • Sign and/or initial the application where indicated.
  • If submitting via mail, the application and reservation forms should be printed single sided.
  • Information requested in Sections 1, 2, & 3 of Form 1: Application, Contract, and Payment Approval must be provided.
  • Only one name should be entered as the Applicant Legal Name. Co-Buyers and Borrowers are not required to be listed on the application.

If you need to download Form 130U(PDF)Exit the TCEQ (Application for Texas Title & Registration), please visit www.txdmv.govExit the TCEQ.

TCEQ is committed to accessibility. If you would like to request a more accessible version of the project application, please contact the TERP program at 800-919-TERP (8377).

The following items must be completed in full to be considered for eligibility:

  • Copy of completed Application for Texas Title and Registration signed by the buyer and seller. Applications lacking these two signatures will not be considered. The following documents may be submitted in lieu of the signed Application for Texas Title and Registration:
    • Application for Texas Title and Registration Receipt issued by the Texas Department of Motor Vehicles; or
    • Copy of the Vehicle Title and Registration Receipt
  • Copy of a state or federal identification card, i.e. driver's license (if applying as an individual or sole proprietor)
  • Completed W-9. TCEQ requires applicants to complete the W-9 to certify their taxpayer identification number (TIN).
  • Copy of completed and executed Purchase/Lease agreement signed by the buyer and seller. Lease agreements must include the terms and conditions of the agreement. A Buyer’s Order may be accepted in lieu of a Purchase/Lease agreement so long as it is signed by both the buyer and seller and submitted along with one of the following documents:
    • Copy of a cancelled check (front & back) showing payment in full; or
    • Finance agreement with a financial institution that indicates the purchase or lease date, the VIN, and the loan amount; or
    • Retail installment contract signed by the financial institution and the buyer.

You may submit your application via email to TERPapply@tceq.texas.gov or by mail to one of the addresses below on or before 5:00 p.m CT, January 7, 2023.

Regular Post Delivery
Texas Commission on Environmental Quality
Air Grants Division
LDPLIP, MC-204
P.O. Box 13087
Austin, TX 78711-3087

Express Delivery
Texas Commission on Environmental Quality
Air Grants Division
LDPLIP, MC-204
12100 Park 35 Circle
Austin, TX 78753

For questions on obtaining the Notice of Rebates, determining the eligibility of a project, or completing and submitting an application, please contact us to discuss.

Vehicle Manufacturers

To be eligible for an incentive, a vehicle or conversion system must be included on the list of eligible vehicle models and conversion systems compiled by TCEQ. In order for a manufacturer to ensure that its vehicle or conversion system is included on the list, the manufacturer must submit a report to the TCEQ listing the new light-duty motor vehicle models and conversion systems meeting the eligibility requirements under 30 TAC §114.612. If your vehicle is not included on the Eligible Vehicle List, please contact the TCEQ to determine whether the vehicle may qualify for a rebate under this grant program.

The TCEQ is requesting responses only from those entities listed as the manufacturer on the United States Environmental Protection Agency (EPA) Certificate of Conformity and/or the California Air Resources Board (CARB) Executive Order. Entities not listed as the manufacturer on the EPA certificate and/or CARB Executive Order should not complete the forms.

Download the Instructions for Completing the Light-Duty Motor Vehicle Purchase or Lease Incentive Program Manufacturer Information Request. Review the Instructions to determine if your entity should complete the Information Request Forms.

Information Request Forms should be completed electronically and signed where indicated. Forms for the various models may be submitted together. Forms may be submitted via email or mail as follows:

Email
Please include the phrase “LDPLIP Info Request” in the subject line and send to terp@tceq.texas.gov.

Regular Post Delivery
Texas Commission on Environmental Quality
Air Grants Division
LDPLIP, MC-204
P.O. Box 13087
Austin, TX 78711-3087

Express Delivery
Texas Commission on Environmental Quality
Air Grants Division
LDPLIP, MC-204
12100 Park 35 Circle
Austin, TX 78753