Texas expands EV incentive program to include Tesla Model 3, Model Y, and Model S

Texas has a few new additions to their list of electric vehicles (EVs) eligible for the state’s incentive program. According to an update to the program this week the Tesla Model 3, Model Y, and Model S are now eligible for a rebate of up to $2,500.

According to the Texas Commission on Environmental Quality website, the “Grants for Alternative Fuel Vehicles and Conversion Systems” program offers rebates of up to $2,500 for select EV purchases, with a cap of 2,000 applicants. The list of eligible vehicles includes a variety of battery-electric and plug-in hybrid models, but as of this week it includes all trim variants of the Model 3 and Model Y. The Model S is also included on the list, although unlike the Model 3 and Model Y, the document listing the eligible vehicles does not specify which trim of the Model S is eligible. The update was first spotted by Tesla Austin Owners Club vice president Anuarbek Imanbaev.

The application window for these grants will remain open until March 22, 2024, or until the maximum number of 2,000 grants is reached. Texas residents interested in these rebates can visit the TECQ website to access application forms and follow the outlined instructions.

This development, while favorable for EV enthusiasts, stands in contrast to how the state of Texas has viewed Tesla in the past. Despite having their headquarters in Texas, and building a multi-billion dollar Gigafactory that has generated 15,000 jobs and resulted in $64 million in taxes paid, Tesla is not legally allowed to sell their vehicles directly to Texans due to the state’s ban of direct vehicle sales.

Tesla was also passed over for state funding to build out EV charging infrastructure, despite Superchargers offering a far better deal than their competitors. Tesla was requesting as little as $30,000 per charger, while others were asking for the maximum $150,000 allowed under the program.

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