Air Quality Funding

 

Funding for Consumer Alternative Fuel Vehicle
and Infrastructure Purchases
Leaf icon leading to Clean Energy Funding Programs
Funding for Clean Energy and Energy Efficiency Projects
Earth and car icon leading to funding and resources air quality improvement strategies


Acronyms

EV - Electric Vehicle PHEV - Plug-In Hybrid Vehicle
CNG - Compressed Natural Gas LPG - Liquefied Petroleum Gas
FCEV - Fuel Cell Electric Vehicle GVWR - Gross Vehicle Weight Rating



 



Comprehensive List of Annual Funding for Vehicles and Infrastructure [Excel]

Clean Energy Tax Incentives: Elective Pay Eligible Tax Credits

Funding for Consumer Alternative Fuel Vehicle and Infrastructure Purchases

AFDC Federal and State Laws and Incentives - Comprehensive list of all the incentives available for alternative fuel vehicles or infrastructure

Program/Incentive

Eligible Activities

Funding Amount

Deadline to Apply

Alternative Fuel Vehicle Refueling Property Credit

Installation of qualified residential fueling equipment, such as EV charging infrastructure

Up to $1,000 tax credit

December 31, 2032

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit*

New EV, PHEV, or FCEV with a GVWR of 14,000 lbs. or less with final assembly in North America

$2,500 - $7,500 tax credit

No deadline

GreenSense Incentive Program*
for Denton Municipal Electric (DME) customers

EVs and e-bikes

EV: $1,500
e-bike: 50% up to $1,000

No deadline

Previously Owned Clean Vehicle Credit*

Used EV, PHEV, or FCEV with a GVWR of 14,000 lbs. or less

Up to $4,000 tax credit

No deadline

United Cooperative Services Rebates 
for United Cooperative Services customers

Electric vehicle charger, fuel conversion rebates, and other energy efficiency improvements

Rebates vary based on activity

End of 2025 or until funds are depleted

 *Can be combined

Funding for Fleet Vehicles and Alternative Fuel Infrastructure

AFDC Federal and State Laws and Incentives - Comprehensive list of all the incentives available for alternative fuel vehicles or infrastructure

Texas Emissions Reduction Plan (TERP) Introduction Video 

 

Program/Incentive

Eligible
Activities

Funding
Amount

Deadline to Apply

Alternative Fuel Vehicle Refueling Property Credit

Installation of alternative fuel infrastructure equipment in eligible locations, including EV charging infrastructure

Up to 30% tax credit

December 31, 2032

Commercial Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit*

New EV, PHEV, or FCEV

15% of the purchase price for PHEVs

30% of the purchase price for EVs and FCEVs

Maximum tax credit of $7,500 for vehicles under 14,000 lbs. GVWR and $40,000 for vehicles over 14,000 lbs. GVWR

No deadline

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit*

New EV, PHEV, or FCEV with a GVWR of 14,000 lbs. or less with final assembly in North America

$2,500 - $7,500 tax credit

No deadline

North Texas Diesel Emissions Reduction Call for Projects

Replacement of older diesel on-road vehicles or engines, locomotive engines, and non-road equipment with newer model year on-road vehicles or engines, locomotive engines, or non-road equipment. Vehicle replacement includes over-the-road, short-haul trucks and other freight and goods movement trucks and equipment. Non-road equipment includes various construction equipment and Transport Refrigeration Unit trailers. Additionally, this includes shore power installaiton for locomotives and idle reduciton technologies.

Up to 40 percent for locamotive shore power; up to 45 percent for vehicles and equipment (including Transport Refigeration Units); up to 50 percent for drayage trucks; up to 60 percent for engines; and up to 100 percent for EPA Verified Highway Idle Reduction Technologies.

5 p.m. CT, June 13, 2025

TxVEMP All-Electric Grant Program




 

Replacement or repower of eligible heavy-duty diesel vehicles or equipment or installation of refueling infrastructure

Up to 100% of the incremental cost of the project for government entities

Up to 75% for non-governmental entities

First-come, first-served until August 31, 2025

*Can be combined


*Note for tax-exempt organizations: The U.S. Department of the Treasury and the Internal Revenue Service have released final rules on elective pay, otherwise known as direct pay. Direct pay enables state and local governments, nonprofit organizations, and other entities to take advantage of clean energy tax credits. For example, a local government that makes a clean energy investment that qualifies for the investment tax credit can file an annual tax return with the IRS to claim elective pay for the full value of the investment tax credit. View the direct pay final rules here.

Funding for Clean Energy and Energy Efficiency Projects

DSIRE - Provides info on federal and state programs related to renewables, fuel cells, and energy efficiency
DOE Solar Research And Development Funding Programs

EPA Clean Energy Programs

Program/Incentive

Eligible Activities

Funding Amount

Deadline to Apply

Texas LoanSTAR (Saving Taxes and Resources) Revolving Loan Program

Energy-related cost-reduction retrofits

Max $6,000,000 per application

August 31, 2025

Texas PACE Authority

Provides finacing for projects aimed to reduce water and energy costs.

Varies

Varies

Lone Star PACE

Provides finacing for projects aimed to reduce water and energy costs.

Varies

Varies

Energy Improvement in Rural or Remote Areas

Clean energy and energy efficiency

$1,000,000,000

$200,000,000 appropriated annually for fiscal years 2022 through 2026 (to remain available until expended)

Take a Load Off, Texas Incentive Programs

Energy efficiency measures

Varies

No deadline

Vehicle Technologies Office (VTO) Program

Projects focusing on innovative trasnportation solutions for on- and off road vehicles

$88,000,000

Application due June 18, 2025, 5pm ET (only eligible if submitted concept paper on time)

 

Other Funding Resources

Alternative Fuels Data Center Laws and Incentives
Better Buildings Financing Navigator
Database of State Incentives for Renewables and Efficiency
DSIRE
- Provides info on federal and state programs related to renewables, fuel cells, and energy efficiency
EV Incentives for Consumers
Infrastructure Investment and Jobs Act (IIJA) Resource Hub
IRA Tax Credits for Clean Energy and Alternative Fuel Vehicles
National Association of State Energy Officials