Grants for Heavy-Duty Vehicles and Equipment
The Rebate Grants Program provides funding to upgrade or replace on-road heavy-duty diesel vehicles and select non-road equipment in certain areas of Texas. See below for details and how to apply.
Now Accepting Applications
We are accepting applications for grants through 5 p.m. CT, July 28, 2026, while funds remain.
This is a first-come, first-served grant based on criteria described in the Request for Grant Applications (RFGA) below.
Funding Updates
Last Updated: April 29, 2026
Total Funding
Small Business
Available
$30,000,000
Requested
$0
New Purchase
Available
$20,000,000
Requested
$0
All Other Projects
Available
$66,000,000
Requested
$0
How to Apply
Step 1 Determine if you are eligible
Eligible applicants
Individuals, state and local governments, corporations, or any other legal entity.
Eligible projects
- Replacement or repower of on-road heavy-duty diesel vehicles and select non-road diesel equipment.
- Electrification of on-road heavy-duty diesel vehicles or non-road diesel equipment.
- Purchase or lease of new, near-zero or zero-emission on-road heavy-duty vehicles or non-road equipment.
Note: If you are looking to replace or repower a locomotive, marine vessel, or non-road equipment not listed in the lookup tool or grant tables below, the Emissions Reduction Incentive Grant Program (ERIG) may be the program for you.
Refueling Infrastructure Option
Applicants may request additional funding to install onsite refueling infrastructure in conjunction with an eligible vehicle or piece of equipment powered by the same alternative fuel within the same application. Eligible alternative fuels for additional funding are:
- electricity
- hydrogen
- compressed natural gas (CNG)
- liquefied natural gas (LNG)
- liquefied petroleum gas (LPG)
- methanol
Eligible areas
Review documents to ensure eligibility
Step 2 Determine your emissions
Find the federal emission standard for the engine of the vehicles or equipment to be replaced using the applicable equipment table:
For engine models 2003 and later, you will need to provide the Engine Family Code to verify the federal emission standard. You may need to look up the Engine Family Code if you cannot find it on your engine:
Step 3 Estimate your maximum grant amount
Grant recipients may be eligible for up to 80% of the eligible costs associated with the purchase, lease, replacement, or repower of the vehicles or equipment.
If you don’t see your equipment type listed, try using our Equipment Glossary to compare images and commonly used names for equipment types.
Use the lookup tool or the grant tables below to estimate your grant amount:
Step 4 Collect documents and fill out forms
Step 5 Submit your application
Applications must be completed and submitted electronically through TERP Online SUNSS.
- Review the online application instructions.
- Complete the online application.
- Upload IRS Form W-9 and other required attachments (if applicable).