Texas EV Incentives for Commercial Vehicles

What is TxVEMP?

The Texas Volkswagen Environmental Mitigation Program (TxVEMP) is aimed at reducing diesel emissions and promoting cleaner air across Texas. Administered by the Texas Commission on Environmental Quality (TCEQ), the program provides grants to help businesses replace or repower older, high-emission diesel vehicles with cleaner, more efficient alternatives. By targeting Class 4-7 local freight trucks—the backbone of many fleets—TxVEMP not only supports environmental goals but also helps businesses modernize their operations.

Whether you’re a small business owner or a large fleet manager, TxVEMP offers a unique opportunity to reduce costs, enhance sustainability, and prepare for the future of transportation.

TxVEMP Qualifications and Priority Areas

TxVEMP Qualifications

To qualify for TxVEMP grants, you must meet these requirements:

1. Eligible Projects
   • Replacement Projects for On-Road Vehicles and Non-Road Equipment
   • Repower Projects for On-Road Vehicles and Non-Road Equipment
   • Refueling Infrastructure
2. Eligible Vehicles for Replacement/Repower
   • Class 4-7 local freight trucks powered by a diesel engine from model years 1992–2009.
   • Vehicles must have a gross vehicle weight rating (GVWR) between 14,001 and 33,000 lbs.
   • Trucks must be used primarily for transporting freight, cargo, or refuse.
3. Eligible Applicants
   • Open to individuals, corporations, state and local governments, and other legal entities.
   • Applicants must have an active registration with the Texas Secretary of State as of the program’s start date and maintain it throughout the grant period.
4. Usage Requirements
   • At least 51% of the annual operation of the grant-funded vehicle or equipment must occur within a designated priority area in Texas.

TxVEMP Priority Areas

TxVEMP prioritizes projects that target areas with the highest potential for emission reductions. Eligible projects must operate primarily within the priority areas outlined in Appendix A of the Request for Grant Applications (RFGA). These areas are strategically selected based on their air quality improvement needs.

Available Grants Under TxVEMP

For both replacement and repower Class 5 vehicle projects, the grant amount will be the lesser of:

1. The specified amounts listed in the grant tables below (based on vehicle model year and fuel type).
2. The applicable reimbursement rate (100% of the incremental project cost for governmental entities, 75% of the incremental project cost for non-governmental entities).

Maximum grant amounts for the replacement or repower of a Class 5 vehicles Under TxVEMP

Key Considerations for Applying to TxVEMP

• All applicants must deduct the value of existing financial incentives or assistance from their project costs.
• For refueling infrastructure projects, ensure that tax credits or deductions are factored in before calculating the grant request.

How to Apply for TxVEMP

To apply for the Texas Volkswagen Environmental Mitigation Program (TxVEMP) All-Electric Grant, follow these steps:

1. Determine Eligibility: Ensure your organization and project meet the program's criteria. Eligible applicants include individuals, corporations, and government entities operating vehicles primarily in Texas's priority areas. Eligible projects involve replacing or repowering vehicles such as Class 4-7 local freight trucks, school buses, shuttle buses, transit buses, and airport ground support equipment with all-electric models.
2. Estimate Potential Grant Amount: Review the grant tables provided by the Texas Commission on Environmental Quality (TCEQ) to understand the funding available for your specific project type.
3. Download and Complete Application Forms: Access the necessary forms, including the W-9 and Application. Ensure all sections are accurately filled out.
4. Submit Required Documents: Compile and submit the completed application and any supporting documents via e-mail to VWSettle@tceq.texas.gov by 5:00 p.m. CT, August 31, 2025.