Texas EV tax credits, in the sense of a state-level credit against income tax, do not exist — Texas has no state income tax to credit against. The two big federal purchase credits ended for vehicles acquired after September 30, 2025. What remains in early 2026 is a federal credit for home charging equipment, a handful of utility rebates, and a state grant program that is currently closed to new applications. Texas also charges an EV-specific registration fee that works in the other direction.
What Texas Offers at the State Level
Because there’s no state income tax, Texas has channeled its EV support through grant programs run by the Texas Commission on Environmental Quality (TCEQ). The relevant one is the Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP), part of the Texas Emissions Reduction Plan.
LDPLIP has offered grants of up to $2,500 for purchasing or leasing a new alternative fuel vehicle, including battery electric and plug-in hybrid vehicles with at least 4 kilowatt-hours of battery capacity, awarded first-come, first-served.1Alternative Fuels Data Center. Light-Duty Alternative Fuel Vehicle Rebates The program is not currently accepting applications for the FY2026 round.2Texas Commission on Environmental Quality. Grants for Alternative Fuel Vehicles and Conversion Systems TCEQ maintains an email list for TERP updates if you want to know when a future round opens.
The older AirCheckTexas Drive a Clean Machine program, which once offered vouchers toward cleaner vehicles, is closed.3Texas Commission on Environmental Quality. AirCheckTexas Drive a Clean Machine (Vehicle Repair Assistance Program) is Closed Texas charges its standard 6.25 percent motor vehicle sales tax on EV purchases with no exemption.
The Texas EV Registration Fee
This one runs against your budget rather than for it. Since September 1, 2023, Texas charges EV owners a first-time registration fee of $400 on top of standard registration, and $200 at each renewal after that. The money goes into the State Highway Fund to make up for the fuel tax revenue EVs don’t produce.4Alternative Fuels Data Center. Electric Vehicle (EV) Registration Fee
Federal Purchase Credits Ended September 30, 2025
The new clean vehicle credit of up to $7,500 and the used clean vehicle credit of up to $4,000 were both terminated for any vehicle acquired after September 30, 2025. The One Big Beautiful Bill Act moved up the end date; the credits had originally been set to run through 2032.5Internal Revenue Service. One, Big, Beautiful Bill Provisions
If you acquired a qualifying vehicle on or before September 30, 2025, you can still claim the credit even if delivery came later. The IRS treats you as having acquired the vehicle if you had a binding written contract and made a payment on or before that date.6Internal Revenue Service. Credits for New Clean Vehicles Purchased in 2023 or After The same transition rule applies to the used vehicle credit.7Internal Revenue Service. Used Clean Vehicle Credit
The credits are nonrefundable and cannot be carried forward. If your tax liability is less than the credit, the difference is lost.
Federal Credit for a Home Charger
The alternative fuel vehicle refueling property credit under Section 30C is the main federal incentive still available to Texas EV buyers in early 2026. Install a Level 2 (240-volt) charging station at your main home and you can claim 30 percent of the cost, capped at $1,000 per charging port. The credit applies to equipment placed in service through June 30, 2026, and is scheduled to be repealed after that date.8Internal Revenue Service. Alternative Fuel Vehicle Refueling Property Credit
The catch is location. Your home must sit in an eligible census tract, meaning either a low-income community tract as defined under the New Markets Tax Credit program, or a non-urban tract as designated by Treasury guidance. You only need to qualify under one of the two categories.9Argonne National Laboratory. Refueling Infrastructure Tax Credit FAQ The Department of Energy publishes an address lookup tool for checking eligibility. Professional installation of a Level 2 charger typically runs $700 to $2,700 depending on the home’s electrical setup, so a $1,000 credit can offset a meaningful share.
Utility Rebates
Several Texas utilities run their own EV-related programs, generally aimed at charging rather than the vehicle itself. Austin Energy offers a rebate covering 50 percent of the cost to buy and install a qualified Level 2 home charger, up to $1,200 for chargers compatible with its Power Partner program or up to $900 for non-compatible stations.10Austin Energy. Home EV Charger Rebate For an Austin resident in an eligible census tract, this rebate stacked with the federal 30C credit can cover most of a home charger installation.
Other Texas utilities offer time-of-use plans and reduced overnight rates for EV charging. These vary by provider and service area, so check with your own utility.
Claiming a Vehicle Credit on Your 2025 Return
If you qualified under the September 30, 2025 transition rule, you claim the credit on your 2025 federal return using IRS Form 8936, which asks for the vehicle identification number and purchase details.11Internal Revenue Service. About Form 8936, Clean Vehicle Credit You file this form even if you transferred the credit to the dealer for an upfront discount at the point of sale.12Internal Revenue Service. Instructions for Form 8936
At delivery, the dealer should have given you a time-of-sale report and confirmation that the IRS accepted the report through its Energy Credits Online portal. Hold onto both. The confirmation proves the sale was reported within the required three-day window and that your VIN qualified for the credit amount applied.13Internal Revenue Service. How to Claim a Clean Vehicle Tax Credit
The income limits from the year of acquisition still govern eligibility, and they were tighter for used vehicles than for new. For new vehicles, modified adjusted gross income could not exceed $300,000 for joint filers, $225,000 for heads of household, or $150,000 for other filers, using whichever is lower between the delivery year and the prior year.6Internal Revenue Service. Credits for New Clean Vehicles Purchased in 2023 or After For used vehicles, the caps were $150,000 joint, $112,500 head of household, and $75,000 for everyone else.7Internal Revenue Service. Used Clean Vehicle Credit