Your complete guide to Texas tax credits and rebates in 2025

Texas might not offer state-level EV rebates, but don't let that stop you from going electric. Between utility rebates for home chargers and special charging rates, there are plenty of ways to make your switch to electric more affordable.

It's worth noting that federal EV incentives have updated timelines: The $7,500 federal tax credit for new EVs expired on September 30, 2025, while the federal EV charger tax credit ends in July 2026. Texas utility programs and state benefits remain unchanged.

Whether you're eyeing that shiny new Tesla or considering a used Chevy Bolt, we'll walk you through every incentive available to Texas residents. Here's how to maximize your savings when you drive electric in the Lone Star State.

Texas residents can still claim the federal home EV charger incentive, but the clock is ticking. President Trump signed HR1 into law on July 4, 2025, dramatically shortening the timeline for EV credits. The EV tax credits were supposed to be available through the decade, and the home charging credit was set to last until 2032.

As of October 1, 2025, the $7,500 federal tax credit for new electric vehicles and the $4,000 credit for used electric vehicles are no longer available.

For home charging, the Alternative Fuel Vehicle Refueling Property Credit provides up to $1,000 for EV charger installations. This covers 30% of installation costs (capped at $1,000) and is available for installations through June 30, 2026, giving you more time than the vehicle credits.

Remember, this is a tax credit, not a rebate—it reduces your federal tax bill dollar-for-dollar. You'll just need enough tax liability to take advantage of it.

While Texas doesn't offer statewide EV purchase rebates, the state has taken a different approach that benefits EV owners in practical ways. Texas utilities step up with charging infrastructure support and special rates that can significantly reduce your ongoing electric transportation costs.

Vehicle emissions inspection exemption for EVs

Here's a bonus perk that saves you time and money: Texas exempts all-electric vehicles from state motor vehicle emissions inspections as of September 1, 2023. It's a small savings, but every bit helps when you're calculating the total cost of EV ownership.

Home charging transforms your EV ownership experience and saves serious money. While public DC fast charging can cost $0.40-$0.60 per kWh, home charging typically runs $0.10-$0.15 per kWh in Texas. For the average EV driver traveling 40 miles per day, that cost difference can save $300-$500 annually.

Several Texas utilities recognize that widespread EV adoption depends on convenient home charging, which is why they offer substantial rebates to cover installation costs and make home charging accessible to more residents.

Texas utility EV charger rebate programs

While Texas doesn't offer state incentives, several utilities across the state provide rebates for home EV chargers. These programs can cut your installation costs significantly and make charging at home even more affordable.

• Austin Energy offers rebates up to $1,200 for residential customers (50% of charger and installation costs), plus up to $3,000 for Level 2 commercial stations and $5,000 for DC fast charging. Check Austin Energy's home charger rebate program for details.

• Entergy provides $250 rebates for Level 2 charger installation through its eTech program, covering both purchase and installation costs. Commercial customers can get up to $1,500 for DC fast charging stations.

• SWEPCO (Southwestern Electric Power Company) offers $250 rebates for ENERGY STAR-certified Level 2 chargers on a first-come, first-served basis. Visit SWEPCO's charging station page for applications.

• United Cooperative Services provides rebates worth 50% of installation costs, up to $500. You'll need to charge during off-peak hours and sign up for Beat the Peak notifications. Check its rebate programs page for eligibility.

Texas electrical panel upgrade incentives

Most EV chargers require a 240-volt circuit, and older homes often need electrical panel upgrades to handle the additional load safely. These homes typically have 100-amp electrical panels that struggle with modern electrical demands, let alone adding a 40-amp EV charger.

The federal Energy Efficient Home Improvement Tax Credit covers up to 30% of electrical panel upgrade costs (capped at $600) when the upgrade supports EV charging, but this credit ends for work completed after December 31, 2025.

Before installing an EV charger, have a qualified electrician assess your electrical panel's capacity. Many utility rebate programs require this assessment anyway, and it ensures your home can safely handle the additional electrical load.

Time-of-use rates and smart charging incentives

Beyond installation incentives, many Texas utilities offer special time-of-use rates that make charging your EV cheaper during specific hours. These programs can dramatically reduce your cost per mile compared to gasoline, especially when you charge during off-peak hours when electricity demand is lower.

According to data from the Alternative Fuels Data Center, Texas has approximately 3,925 public charging stations statewide as of September 2025, including 11,615 public charging ports. Of those publicly available chargers, 7,502 are Level 2 stations and 4,113 are DC fast chargers.

While that might sound robust, the infrastructure is heavily concentrated in major metropolitan areas.

Where to find public charging stations

Austin leads with over 700 charging stations, followed by Houston with over 400 and Dallas with more than 250. 

Outside these urban centers, charging options become more limited, though Tesla's Supercharger network provides excellent coverage along I-10 and I-35 with stations roughly 150 miles apart.

Public charging costs and economics

Public DC fast charging in Texas averages $0.51 per kWh. Many networks now use variable pricing that accounts for location, time of day, and power delivery, so costs can fluctuate throughout the day.

Level 2 public charging typically costs less but charges more slowly, making it better suited for longer stops like shopping or dining.

Ready to go electric in Texas? Start by researching what EVs make sense for you, then check what rebates your utility offers for home chargers. Many EV buyers find that combining a home charger with solar panels maximizes their savings and energy independence.

The transition to electric transportation is happening—with Texas utility programs supporting the switch, there's never been a better time for residents to go electric. Between lower fuel costs, reduced maintenance, and available incentives, the economics of EV ownership continue to improve.