Texas could be ready to kick-off its $2,500 rebate program as soon as mid-May, according to sources at the Texas Commission on Environmental Quality. The Commission is working to finalize its rebate applications, instructions and a list of eligible vehicles and hopes to have more information available on its website soon.
Here are a few highlights of the new rebate program:
- Who can apply - Rebates will be available to individuals, businesses, state agencies and local government units that purchase or lease an eligible vehicle.
- Rebate amount – A $2,500 rebate will be available for vehicles that are either purchased or leased for a term of four years or more. Unlike other states, zero emission vehicles and plug-in hybrid electric vehicles are eligible for the same rebate amount under the Texas program, as long as the vehicle’s battery capacity is at least 4kWh.
- Prorated for leases - Rebate amounts for leased vehicles will be prorated based on the lease term. Lessees can receive 25% of the rebate amount for a 1-year lease, 50% for a 2-year lease, 75% for a 3-year lease or 100% for a 4-year lease.
- Eligibility - Applicants must purchase or lease an eligible vehicle, register the vehicle in Texas, certify that the applicant will reside in Texas and operate the vehicle primarily in Texas for at least one year, and submit the required application and verification of purchase or lease.
- How to apply - Once the rebate application forms are finalized, they will be posted on the Commission’s website. Vehicles purchased or leased before applications become available will not be eligible for the rebate.
- Expiration - The rebate program currently expires on August 31, 2015. Only 2,000 electric vehicles will be eligible for rebates each fiscal year. A separate 2,000 cap applies to rebates for natural gas vehicles.
Barry Brents is a tax attorney, specializing in US and state tax law.
His website, PlugIncentives.com, provides dealerships and consumers with the most up-to-date information about EV incentives. Follow PlugIncentives on Twitter for the latest updates on EV Incentives programs around the country.