The Texas Commission on Environmental Quality (TCEQ) has opened applications for its Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP), part of the Texas Emissions Reduction Plan (TERP). The program aims to encourage Texans to purchase or lease new light-duty vehicles powered by electricity, hydrogen fuel cells, compressed natural gas (CNG), or liquefied petroleum gas (LPG).
Grants are available statewide for individuals and entities that buy or lease an eligible new vehicle on or after September 1, 2025, and who apply for or acquire title and registration in Texas. According to TCEQ, “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.”
Applicants can include individuals, corporations, organizations, governmental bodies, business trusts, partnerships, associations, and other legal entities. To qualify, applicants must register and operate the qualifying vehicle in Texas for at least one year.
Eligible vehicles must be new—meaning not previously owned—and classified as light-duty with a gross vehicle weight rating of 10,000 pounds or less. All qualifying vehicles must appear on TCEQ’s official Eligible Vehicle List.
Key requirements specify that applications may only be submitted after taking possession of the vehicle. Vehicles cannot receive incentives from any other TERP program. The TCEQ will award no more than 1,000 grants for CNG and LPG vehicles combined and no more than 2,000 grants for hydrogen fuel cell or electric drive vehicles under this initiative.
Detailed eligibility information and application instructions are available on the LDPLIP webpage. Applications will be processed on a first-come, first-served basis until March 6, 2026 at 5:00 p.m. CST or until all funds have been distributed.
Further details about TCEQ’s emission reduction programs can be found at www.terpgrants.org. For questions about the program contact 800-919-TERP (8377) or email TERP@tceq.texas.gov.
Those interested in updates about TERP programs can join the agency’s email list.
