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State revs up new $2,500 incentive for EVs after federal deal was terminated: 'First-come, first-served'

"This should save my dad $2,500 if he fills it out quickly enough!"

Texas just launched a new program that provides a $2,500 grant for qualifying EVs bought and registered in the state.

Photo Credit: iStock

Drivers looking to buy a new vehicle in Texas just received another incentive to make a planet-friendly upgrade.

The Lone Star State launched a new program aimed at boosting electric vehicle sales after the federal tax credit expired, according to WebProNews

The Light-Duty Motor Vehicle Purchase or Lease Incentive Program provides a $2,500 grant for qualifying EVs bought and registered in the state of Texas. 

Funds are limited and will be "allocated on a first-come, first-served basis" to encourage customers to act quickly. According to Drive Tesla, the application period runs until March 6, 2026, or until the funds have been distributed. 

Per WebProNews, Tesla, an Austin-based company, will likely benefit from the new program as many of the company's models qualify for the rebate. After struggling with slumping sales in 2025, Tesla unveiled new, more affordable models with deliveries set for later this year. 

Other states around the nation are also offering EV rebates. Residents in Colorado can get up to $9,000 off a new eco-friendly vehicle through the state's rebate program. Earlier this year, Illinois also greenlit a program that offered a $4,000 incentive. 

Upgrading to an EV can help drivers save hundreds of dollars on gas and maintenance, and the planet-friendly vehicles produce no tailpipe pollution, according to the U.S. Environmental Protection Agency. 

EVs still require electricity for charging — which may be generated using dirty fuels if it is sourced from the grid — but these vehicles are still more energy efficient than gas-powered cars and better for the environment by comparison. 

The EV market has seen continued growth worldwide. In 2024, more than 17 million electric cars were sold globally, per the International Energy Agency. Additionally, EV sales in the first quarter of 2025 were up 35% compared to the year before. 

News of the Texas EV grant program was posted to the r/electricvehicles subreddit, and some commenters were already prepared to jump on the opportunity. 

"Thank you!" one commenter wrote. "This should save my dad $2,500 if he fills it out quickly enough!"

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