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
New Technology Implementation Grants (NTIG) Technologies to reduce emissions from stationary sources, technologies for oil and gas projects, or electricity storage projects Up to 50%  January 31, 2025
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 2024 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 Excise Tax Credit Alternative fuel sold or used as a fuel to operate a motor vehicle $0.50 per gallon (GGE for natural gas and propane) December 31, 2024
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
Clean School Bus Program Rebates  Replacement of older diesel or non-diesel internal combustion engines with battery-electric, compressed natural gas, or propane versions Varies depending on fuel type of new bus, the maximum which can be requested per bus is $325,000 

 
January 9, 2025
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 installation for locomotives and idle reduction technologies. Up to 40 percent for locomotive shore power; up to 45 percent for vehicles and equipment (including Transport Refrigeration 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. March 14, 2025
Seaport and Rail Yard Areas Emissions Reduction Program (SPRY) Replacement or repower of drayage trucks and cargo handling equipment with newer ones Up to 80% of eligible costs March 4, 2025
New Technology Implementation Grants (NTIG) Technologies to reduce emissions from stationary sources, technologies for oil and gas projects, or electricity storage project Up to 50%  January 7, 2025
Texas Natural Gas Vehicle Grant Program (TNGVGP)  Replacement or repower heavy-duty or medium-duty vehicles with a natural gas version Up to 90% of the eligible costs  March 4, 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
Grants for Alternative fuel Government Fleets Provides funding to purchase or lease new vehicles that operate primarily on compressed natural gas (CNG), liquefied natrual gas (LNG), liquefied petroleum gas (LPG), hydrogen (fuel cells), or electricity/pug-in hybrids Up to 10% of awarded funds 5 p.m. CT, February 5, 2025
North Texas Diesel Emissions Reduction 2024 Call for Projects Replacement of existing diesel-powered medium-duty and heavy-duty vehicles of equipment Matched funds will range from 0% - 75% of total project cost 5 p.m. CT, March 14, 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
Energy Efficiency and Climate Justice Block Grants Clean energy and energy efficiency $3,000,000,000 To remain available through September 30, 2026
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
New Technology Implementation Grants (NTIG) Technologies to reduce emissions from stationary sources, technologies for oil and gas projects, or electricity storage project Up to 50%  January 7,2025
Grants for Locomotives, Marine Vessels, Stationary Equipment, and Non-Road Equipment The Emissions Reduction Grants Program (ERIG) provides funding to repower or replace older locomotives, marine vessels, stationary equipment, or non-road equipment to reduce nitrogen oxides emissions in Texas. up to $20,000 for marine vessels and locomotives
up to $35,000 for stationary equipment and non-road equipment
Available through 5 p.m CT, Feburary 14, 2025
Weatherization Assistance Program (WAP) The U.S. Department of Energy is extending WAP. This program helps reduce energy costs for low-income households by enhancing their homes' energy efficiency. The remaining 50% of BIL funding will be obligated while retaining the requirements to meet the original milestones outlined in WPN BIL-1 June 30, 2029

 

Other Funding Resources

Better Buildings Financing Navigator
Bipartisan Infrastructure Law (BIL) Guidebook, Pages 155-225 (PDF)
Infrastructure Investment and Jobs Act (IIJA) Resource Hub 
DSIRE - Provides info on federal and state programs related to renewables, fuel cells, and energy efficiency
Inflation Reduction Act (IRA) Guidebook Programs List
IRA Tax Credits for Clean Energy and Alternative Fuel Vehicles
EPA Funding Announcements from the IRA and BIL
EV Incentives for Consumers