The Texas Commission on Environmental Quality (TCEQ) has opened applications for its Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP), a part of the Texas Emissions Reduction Plan (TERP). The program offers grants to individuals and organizations across Texas who purchase or lease eligible new light-duty vehicles that use alternative fuels.
Under the LDPLIP, those buying or leasing new electric drive vehicles, including plug-in hybrids and hydrogen fuel cell models, can receive up to $2,500. For compressed natural gas (CNG) and liquefied petroleum gas (LPG) vehicles, the grant amount increases to $5,000. Applicants must register and operate their qualifying vehicle in Texas for at least one year.
Eligible applicants include individuals, corporations, government entities, partnerships, and other legal organizations. To qualify, vehicles must be new, not previously owned, classified as light-duty with a gross vehicle weight rating of 10,000 pounds or less, and listed on TCEQ’s official Eligible Vehicle List.
According to TCEQ: “Applications may only be submitted after taking possession of the vehicle. Vehicle cannot receive incentives from any other TERP program. TCEQ may award no more than 1,000 grants for a combination of CNG and LPG vehicles and 2,000 grants for hydrogen fuel cells or other electric drive (plug-in or plug-in hybrid) vehicles under this grant program.”
Detailed eligibility requirements 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 funds run out.
For more information about emission reduction programs at TCEQ visit www.terpgrants.org or contact them by phone at 800-919-TERP (8377) or email at TERP@tceq.texas.gov.
