Tesla benefits from new incentive program that’s active after tax credit loss

Max Headroom 2025.10.16 3 min read

Tesla benefits from an incentive program in Texas that has become active following the loss of the $7,500 EV tax credit, which was a significant advantage for EV drivers.

In Texas, the State Commission on Environmental Quality has a grant program for light-duty motor vehicles that are either purchased or leased by consumers.

Referred to as the Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP), the program opened on October 13 and provides grants for consumers who want to buy new energy vehicles.

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The program allows for grants of up to $2,500 for electric or hydrogen fuel cell vehicles.

These are the eligibility criteria:

Individuals or entities who purchase or lease an eligible vehicle on or after September 1, 2025, and who apply for or acquire title and registration of the vehicle in Texas
Applicants must have taken possession of the vehicle before applying
Applicants must commit to operating and registering the vehicle in Texas for at least one year

Additionally, the car must:

Be included on the TCEQ Eligible Vehicle List
Be new and must not have been the subject of any prior retail sale or lease
Have a gross vehicle weight rating of 10,000 pounds or less

They are awarded on a first-come, first-served basis.

The good news is that Tesla’s entire vehicle lineup, as of October 7, qualifies. Here is what the LDPLIP’s list of qualifying vehicles shows for Tesla:

Tesla Cybertruck AWD
Tesla Cybertruck Beast
Tesla Model S AWD
Tesla Model S Plaid
Tesla Model X AWD
Tesla Model X Plaid
Tesla Model Y Long Range RWD
Tesla Model Y Long Range AWD
Tesla Model Y Performance
Tesla Model 3 Long Range RWD
Tesla Model 3 Long Range AWD
Tesla Model 3 Performance

This list was published during the day of October 7, which is coincidentally the same day Tesla launched its Tesla Model 3 ‘Standard’ and Tesla Model Y ‘Standard.’

We reached out to the program to confirm that these vehicles qualify for that grant, and we will update when we hear back.

With the loss of the Federal EV Tax Credit, local programs are still available to help with the cost of an EV. Although electric cars are affordable, there are benefits to choosing one, especially as these grant programs continue to become available.

The full list of vehicles that qualify for the grant is available here.

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