Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP)

The Texas Commission on Environmental Quality (TCEQ) is issuing a Request for Grant Applications (RFGA) for the Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP) under the Texas Emissions Reduction Plan (TERP). The LDPLIP provides grants to incentivize the purchase or lease of new light-duty motor vehicles powered by compressed natural gas (CNG), liquefied petroleum gas (LPG), hydrogen fuel cell, or other electric drive (plug-in or plug-in hybrid) in order to improve air quality in the state. Eligible applicants include individuals, corporations, organizations, governments, and other legal entities who purchase or lease an eligible vehicle on or after September 1, 2023 and register it in Texas. Grant amounts range from $832.50 to $5,000 depending on the fuel type and lease term. TCEQ may award up to 1,000 grants for CNG/LPG vehicles and 2,000 grants for hydrogen/electric vehicles. Applications are due by March 22, 2024 and will be accepted on a first-come, first-served basis as long as funds are available.

The LDPLIP is available in Travis County and the cities of Austin, Texas. Dealers and leasing companies may reserve a place in line for funding consideration, but TCEQ has suspended the acceptance of reservations due to the high volume of applications received. TCEQ has also suspended the acceptance of applications for hydrogen fuel cell or other electric drive vehicles after reaching the statutory limit of 2,000 grants for this vehicle type. The total funding available depends on revenue received in the TERP account, and TCEQ is not obligated to award grants up to the full available amount. Applicants must agree to register and operate the vehicle in Texas for at least 12 months.