Texas brings back its $2,500 electric vehicle incentives – Tesla is still out

Texas is bringing back its electric vehicle incentive program which offers a $2,500 discount at the purchase of all-electric, plug-in hybrid, and fuel cell vehicles after a 3-year hiatus. With the federal tax credit, it can add up to $10,000 in incentive on a new EV.

But a lot of EV buyers will be left out of the program since Tesla vehicles are still not eligible.

The Texas Legislature approved the program and put $7.3 million in a fund to finance the initiative.

Russ Keene, president of Plug-in Texas, a coalition that promotes electric vehicles, commented on the program via Dallas News:

Texas now joins 45 other states in incentivizing alternative fuel vehicles or infrastructure to support them, which accelerates the adoption of clean vehicles and demonstrates the contributions alternative fuels are making to improve air quality, lower operating costs and enhance energy security,

The program is more generous for cars or trucks running on compressed natural gas or liquefied petroleum gas, which are eligible for $5,000.

Buyers can apply for vehicles bought between Sept. 1 and May 31, 2019, or when the money runs out or if they reach the limit of 1,000 of the natural gas rebates and 2,000 of the electric and hydrogen fuel cell rebates.

An important condition in the program has left out all Tesla buyers since the rebates go through dealerships and Texas is one of the last states that still doesn’t allow Tesla’s direct sale business model.

Electrek’s Take

The reason for banning Tesla buyers from the incentive is undoubtedly stupid, but at the same time, Model 3 buyers would have probably work through the 2,000 rebates before the end of the year.

Counterintuitively, keeping Tesla out of the program is probably gonna lead to more electric vehicle deployment since Tesla will still sell in Texas every vehicle it can produce.

But that’s not an excuse for Texas to get rid of their ridiculous direct sale laws – though it won’t be this year since Tesla didn’t manage to push their bill during this last legislative session.