The Clean Vehicle Incentive Program
Direct funding for this program was reallocated during the 2003 regular session of the Texas Legislature. Applications will not be accepted until funds are available.
When funded, the program will offer incentives from $1,250 to $5,000 on the purchase or lease of new low-emission motor vehicles.
Vehicles that Qualify for Program Incentives
- New 2003, or later model year leased or purchased on or after August 1, 2002, and registered in Texas;
- Gross vehicle weight rating of less than 10,000 pounds;
- 75 percent of mileage driven within the state; and
- Certified by the U.S. Environmental Protection Agency (EPA) to meet stringent emission standards
Amount of Incentive
The amount of the incentive will be based upon the Bin level, an emission standard measured using a federal test procedure. The lower the Bin level, the higher the incentive. A vehicle's Bin level should be indicated on the Vehicle Emission Control Information Label (VECI Label), located under the hood.
Leases for 48 months or longer will be eligible for the full incentive amount. Leases for shorter periods will be prorated from a 48-month term. A 24-month lease, for example, will be eligible for half of the full incentive amount allowed for that vehicle.
Additional InformationThe TERP is administered by the Texas Commission on Environmental Quality. Information about TERP is available online at http://www.tceq.state.tx.us/.
Contact us via Texas Tax Help. Call us toll free at 1-800-252-1382 or in Austin at 512/463-4600.