Unlock Your Savings: A Deep Dive into Texas EV Tax Credits & Charging Incentives

Content Table

Texas Electric Vehicle Tax Credits, Rebates and Incentives

Texas EV Charger Rebates

EV Charging Rates in Texas

Home Electrification Incentives in Texas

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Texas Electric Vehicle Tax Credits, Rebates and Incentives

 

If you are a Texas resident considering purchasing an EV purchase, it's important to understand how to get the best value from your switch to electric. This page provides an overview of EV incentives and rebates across The Lone Star State and how residents can benefit from Texas's pro-electrification initiatives.

 

Vehicle Emissions Inspection Exemption For EVs

Beginning September 1, 2023, vehicles powered entirely by electricity are exempt from state motor vehicle emissions inspections.

 

Texas Vehicle Electrification Grants

Clean School Bus grants are available to public and charter schools to replace or retrofit school buses. The Texas Department of Transportation is currently distributing a portion of the $86 million the state received in NEVI funds for 2024 in the form of competitive grants for the development of charging facilities along major highways, as well as in small cities and rural areas.

 

Additional vehicle electrification grants are available to large fleets owners in select Texas counties to replace diesel-powered vehicles with alternative fuel or hybrid vehicles.

 

For more information, including eligibility requirements, see the Texas Clean School Bus and Texas Clean Fleet program pages on the Texas Commission on Environmental Quality website.

 

Federal Tax Credits For Electric Vehicles

Since Texas does not have a state income tax, there are also no state tax credits for EVs. However, it is important to note that purchasers may be eligible for federal tax credits, such as the Clean Vehicle Tax Credit of up to $7,500 for new vehicles, or the Used Clean Vehicle Tax Credit up to $4,000 for used vehicles. Income limits as well as battery component and critical mineral limits may apply. Always consult a qualified CPA or tax professional to confirm your eligibility.

 

Texas EV Charger Rebates

 

In addition to the incentives offered for purchasing an EV as described above, Texas residents can also apply for a rebate for the purchase and installation of a Level 2 charger, ranging from $250 to up to $1,500, and even higher for non-residential EV charging programs.

 

Below is a summary of EV charger rebate programs offered by Texas utility providers.

 

Austin Energy EV Charger Rebates

If you're an Austin Energy customer, you can save 50% on the purchase and installation of a Level 2 EV charger, for savings of up to $1,200.

 

Commercial customers can access additional rebates and businesses and multifamily properties can qualify for up to $3,000 in rebates for installing a Level 2 charging station and up to $5,000 for a DC Fast Charging station.

 

For more information, including eligibility requirements, see the Incentives page on the Austin Energy EV Buyer Guide website.

 

Entergy EV Charger Rebates

Entergy offers a $250 rebate through their eTech program for residential customers who purchase and install a Level 2 EV charger.

 

Commercial customers are also eligible for the $250 Level 2 rebate, with additional rebates of up to $1,500 for DC fast charging stations.

 

For more information, see the Entergy eTech Electric Technology and Incentives page.

 

SWEPCO EV Charger Rebate

Southwestern Electric Power Company (SWEPCO) is offering a $250 rebate to residential customers who install an ENERGY STAR-certified Level 2 EV charging station. Rebates are available on a first-come, first-served basis and are subject to funding limits.

 

For more information, including how to apply, see the Charging Stations page on the SWEPCO website.

 

United Cooperative Services EV Charger Rebate

United Cooperative Services (UCS) offers residential customers a rebate of 50% of the cost of installing a Level 2 EV charging station, up to $500. Eligible customers must agree to charge EVs during off-peak hours.

 

For more information, including eligibility and how to apply, see the EV Charger section on the UCS’s Rebate Programs page.

 

EV Charging Rates in Texas

 

Some utilities in Texas also offer special time-of-use (TOU) and off-peak electricity rates for EV drivers, designed to encourage vehicle charging at specific times of the day.

 

Austin Energy Plug-In Everywhere Program

The Austin Energy Plug-In EVerywhere℠network offers charging at 1,600+ Level 2 charging stations throughout their service area. Level 2 charging stations charge $0.09 per kWh, which comes to about a penny per minute. The program also features DC fast chargers conveniently located near major transit routes in Austin, for $0.21 per minute.

 

For more information, see the EVerything Charging page.

 

Champion Energy Services Off-Peak EV Charging Incentive

If you get your electricity from Champion Energy Services, charging your EV between 10 P.M. and 4 A.M. will qualify you for a lower rate.

 

For more information, including eligibility requirements, see the EV Saver-12 Plan page.

 

CPS Energy Off-Peak EV Charging Incentive

CPS Energy offers electrification incentives in the form of bill credits. If you sign up for a program that allows you to remotely adjust your charging speed during peak hours, you can receive a one-time $250 bill credit followed by a $5 monthly credit; if you charge only during off-peak hours, you'll receive a one-time $125 bill credit and a $10 monthly credit.

 

For more information, including eligibility requirements, see the CPS Energy FlexEV page.

 

GEXA Energy Off-Peak Charging Incentives

Gexa SavEV 24 and Gexa SavEV 12

In addition to providing clean energy, Gexa Energy will provide a 100% bill credit for the energy used to charge your EV between 11 p.m. and 5 a.m. Available in terms of 12 and 24 months, the SavEV plans seek to reduce the strain on the grid by incentivizing EV owners to charge during off-peak hours. All eligible customers must pair their EV to the Gexa365 platform on the Gexa app to receive a monthly Nighttime EV Charging Credit.

 

For more information, see the GEXA Energy EV Charging page.

 

TXU Energy Off-Peak Charging Incentive

TXU Energy helps customers offset the cost of charging their EV at home by offering free charging between 7 p.m. and 1 p.m. To take advantage of these savings, you’ll have to connect your EV to the online platform and share your telematics data, but the platform is compatible with most EV models.

 

For more information, see the Free EV Miles page.

 

Home Electrification Incentives in Texas

 

In 2024, Texas is expected to offer home energy rebates funded through the Inflation Reduction Act, making $346 million for home energy efficiency rebates and $344 million for home electrification rebates available for appliance rebates, insulation and air sealing, heat pumps for space and water heating, and upgrades to smart electrical panels necessary to enable those retrofits.

 

Combining EV ownership with other electrification projects, such as upgrading your home with solar panels & battery storage, or investing in a heat pump, will help you save even more while reducing your environment impact.

 

In Texas, in addition to the U.S. federal government, you may receive home electrification incentives through your electricity provider. Scroll down to read details about rebates and incentives for specific home electrification technologies.

 

Battery Storage

Currently, there are no state or utility incentives for battery storage in Texas. However, the 25D Residential Clean Energy Tax Credit provides a 30% federal tax credit on the cost of new battery storage systems size 3 kWh and larger.

 

Electrical Panels

The 25C Energy Efficient Home Improvement Tax Credit provides a federal tax credit (up to 30% of the project cost, capped at $600) for electrical panel upgrades needed to complete electrification projects such as heat pumps and heat pump water heaters. The 25C tax credit are available to renters and homeowners making upgrades to their primary or secondary residence.

 

Qualifying electrical panels must meet National Electrical Code (NEC) standards and have a capacity of 200 Amps or more. This means that your new/upgraded panel must be able to serve a load of at least 200 Amps, but you do not need 200 Amps of incoming utility service. Smart panels may qualify if they can serve a 200 Amp load for you.

 

If you are applying for 25D for a residential solar or battery storage project and the installation process required you to upgrade your main panel, you may be able to apply 25D to electrical panel costs as well.

 

Heat Pumps & Heat Pump Water Heaters

As a customer of Austin Energy, you can receive up to $750 for installing a qualifying heat pump.

 

CPS Energy offers rebates of up to $310 per ton for customers who install new heat pump systems.

 

Oncor customers can receive rebates from $1,800 to $3,300 for installing a new heat pump, and Southwestern Electric Power Company (SWEPCO) offers rebates of up to $3,500 for residential customers who install qualifying heat pump equipment.

 

The 25C Energy Efficient Home Improvement Tax Credit also applies to heat pumps and heat pump water heaters. A 30% federal tax credit (capped at $2,000) is available. Eligible technologies must meet certain energy efficiency requirements.

 

Solar Panels

American Electric Power (AEP) Texas offers rebates from $1,500 to $3,000 for PV solar panel systems.

 

Austin Energy customers who complete Austin Energy's solar education program and install a solar panel system at least 3 kW in size are eligible for a rebate worth $2,500.

 

New Braunfels Utilities customers who install a photovoltaic solar system for 3 kW and bigger can receive a rebate worth up to $3,000.

 

The 25D Residential Clean Energy Tax Credit also provides a 30% federal tax credit on the cost of photovoltaic (PV) solar panel systems.

 

 

 

As we’ve seen, Texas is actively fostering electric vehicle adoption with a range of tax credits, rebates, and charging incentives. Whether you're new to EVs or thinking about upgrading, these programs can offer significant financial benefits while supporting a cleaner environment.

 

Taking advantage of these incentives not only helps reduce the initial cost of your electric vehicle but also leads to lower long-term operating expenses. Plus, the increasing number of charging stations throughout Texas makes it more accessible than ever to drive electric.

 

With policies continually changing and new incentives on the horizon, staying updated is key. Regularly check state resources and local initiatives to ensure you’re getting the most out of these opportunities.

 

In summary, transitioning to an electric vehicle in Texas is not just a smart financial decision; it’s a meaningful step towards a more sustainable future. Embrace the savings and join the thriving community of EV drivers making a positive difference for our planet!