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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.

Accepting Applications Soon

We expect to begin accepting applications in April 2026—subject to change.

This is a first-come, first-served grant program based on criteria described in the Request for Grant Applications.

The information below is provided for reference only. When we begin accepting applications, we will update this webpage with the final requirements and documents.

Join our TERP email list to get updates on important dates for grant applications.

FY24 Application Status Report

Funding Updates

Last Updated: Feb. 11, 2026

Total Funding

Available: $116,000,000 Requested: $0

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 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

Map of Eligible Counties

Review documents to ensure eligibility

Documents below are for reference only. We will provide updated documents when we begin accepting applications.

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 grant tables below to estimate your grant amount:

Tables below are for reference only. We will provide updated information when we begin accepting applications.

Non-Road Equipment Grant Tables (Replacement and Repower)

Heavy-Duty Vehicles Grant Tables (Replacement and Repower)

New Purchase Grant Tables

On-Vehicle Electrification Grant Tables

Step 4 Collect documents and fill out forms

TCEQ forms below are for reference only. We will provide updated forms when we begin accepting applications.

Step 5 Submit your application

Applications must be completed and submitted electronically through TERP Online SUNSS.

  • Review the online application instructions (coming soon).
  • Complete the online application.
  • Upload IRS Form W-9 and other required attachments (if applicable).

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