The Texas Commission on Environmental Quality (TCEQ) has announced that applications are now open for its Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP), part of the Texas Emissions Reduction Plan (TERP). The program offers grants to individuals and organizations that buy or lease new, eligible light-duty vehicles powered by alternative fuels.
Under the LDPLIP, grants of up to $2,500 are available for electric drive vehicles, including plug-in and plug-in hybrid models, as well as hydrogen fuel cell vehicles. For those purchasing compressed natural gas (CNG) or liquefied petroleum gas (LPG) vehicles, grants of up to $5,000 are offered.
Eligibility for the program extends to a wide range of applicants, including individuals, corporations, government agencies, and other legal entities. Vehicles must be new, not previously owned, light-duty (with a gross vehicle weight rating of 10,000 pounds or less), and listed on TCEQ’s official Eligible Vehicle List. The qualifying vehicle must be registered and operated in Texas for at least one year.
Applicants can only submit their application after taking possession of the vehicle, and vehicles that have received incentives from any other TERP program are not eligible. The program limits the number of grants to a maximum of 1,000 for CNG and LPG vehicles combined, and 2,000 for hydrogen fuel cell or electric drive vehicles.
Applications are processed on a first-come, first-served basis until March 6, 2026 at 5:00 p.m. CST or until all funds are awarded. More information about eligibility requirements and application instructions is available on the LDPLIP webpage. Details about other emission reduction programs offered by TCEQ can be found at www.terpgrants.org.
