Skip to Content
Questions or Comments: terp@tceq.texas.gov

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.

Currently Closed

Stay up to date on TERP programs. Join our TERP Hot Topics email list to get updates.

Application Status Report

Funding Updates

Last Updated: December 6, 2024

Total Funding

Available: $92,000,000 Requested: $307,794,820

Small Business

Available

$30,000,000

Requested

$30,000,000

New Purchase

Available

$20,000,000

Requested

$24,469,266

All Other Projects

Available

$42,000,000

Requested

$253,325,554

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 requesting grant funds to purchase on-road vehicles or non-road equipment powered by an alternative fuel may request additional funding to install onsite refueling infrastructure to fuel the grant-funded vehicles or equipment. Allowable alternative fuels are:

  • electricity
  • hydrogen
  • compressed natural gas (CNG)
  • liquified natural gas (LNG)
  • propane (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 being replaced by using the table applicable to your equipment type:

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. Grant amounts cannot exceed the maximum amounts listed in the Maximum Eligible Grant Amount Tables.

Note: The Maximum Eligible Grant Amount Tables have been updated to define the fuel types under natural gas.

Don't know your equipment type? Visit our Equipment Glossary to see images and other commonly used names.

Non-Road Equipment Grant Tables (Replacement and Repower)

*Update: The Maximum Eligible Grant Amount Tables for the Old Equipment’s Engine Years for the 75-99 horsepower category were revised in November 2024 to read 2008-2013.

Heavy-Duty Vehicles Grant Tables (Replacement and Repower)

New Purchase Grant Tables

On-Vehicle Electrification Grant Tables

Step 5 Submit your application

Secure Site

Submit securely by uploading the file to our FTPS site and selecting the share file(s) button. Enter "Rebate-Apply@tceq.texas.gov" as the email address. Note: Applications uploaded without completing the share file(s) step will not be considered as submitted.

Regular Mail

TCEQ
Air Grants Division, MC-204 (Rebate)
P.O. Box 13087
Austin, TX 78711-3087

Express Mail

TCEQ
Air Grants Division, MC-204 (Rebate)
12100 Park 35 Circle
Building F, 1st Floor, Suite 1301
Austin, TX 78753

Questions?
Want Updates?