TCEQ Launches Program to Reduce Emissions from Light-Duty Vehicles

AUSTIN -- The Texas Commission on Environmental Quality’s (TCEQ) Texas Emissions Reduction Plan (TERP) is now accepting applications for the Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP). Grants are available statewide for those who purchase or lease an eligible new light-duty motor vehicle on or after Sept. 1, 2025, and who applied for or acquired title and registration of the vehicle in Texas.

The LDPLIP provides grants for eligible Texans who purchase or lease new alternative fuel vehicles. The program is designed to incentivize the use of vehicles powered by electricity or alternative fuels to improve air quality in the state.

Grant Amounts

• Grants of up to $2,500 are available for eligible electric drive (plug-in or plug-in hybrid) or hydrogen fuel cell vehicles.
• Grants of up to $5,000 are available for eligible compressed natural gas (CNG) and liquefied petroleum gas (LPG) vehicles.

Eligible applicants include individuals, corporations, organizations, governments or governmental subdivisions or agencies, business trusts, partnerships, associations, or any other legal entities. Applicants must register and operate the qualifying vehicle in Texas for at least one calendar year.

Vehicles must be new, for first sale (not previously owned), and light-duty (GVWR ≤ 10,000 lbs.). All vehicles must be on the official TCEQ Eligible Vehicle List.

Key Program Requirements

• Applications may only be submitted after taking possession of the vehicle.

• Vehicle cannot receive incentives from any other TERP program.

• TCEQ may award no more than 1,000 grants for a combination of CNG and LPG vehicles and 2,000 grants for hydrogen fuel cells or other electric drive (plug-in or plug-in hybrid) vehicles under this grant program.

Detailed eligibility requirements and instructions for how to apply for an LDPLIP grant can be found on the LDPLIP webpage. Applications will be accepted on a first-come, first-served basis until 5:00 p.m. CST on March 6, 2026, or until all available funds have been awarded.

Information about other emission reduction programs at TCEQ can be found at www.terpgrants.org , or contact us at 800-919-TERP (8377) or via email at TERP@tceq.texas.gov.

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