Residents are becoming increasingly interested in learning about EV incentives in Texas. It makes sense, as more consumers are on the lookout for alternative energy sources. After all, electric vehicles represent a viable solution to cutting costs and saving money.
What’s more, gas-powered vehicles are bad for the environment. Anyone looking to do their part in keeping the planet healthy will likely want to consider investing in an EV if they haven’t already.
At present, every major car manufacturer is working toward delivering EVs for the future. And while this is a noble ambition, it’s no secret that electric vehicles are expensive to buy and maintain.
Fortunately, the United States government has incentives that are designed to lend a helping hand in buying an electric vehicle. If you’re interested in learning more about this trend, keep reading to find out what you need to do to get on board.
What Exactly Are EVs?
A lot of people equate Teslas with electric vehicles. This is understandable, as Elon Musk’s popular EV has proved to be a juggernaut in the electric car industry. But there are actually many other carmakers that have equally impressive versions of their own EVs.
But what is an EV exactly? At its core, an EV (electric vehicle) is an automobile that relies on electricity to power it and make it go. So instead of using up fuels like gas or diesel, EVs use electricity.
And whereas you go to a gas station to refill your tank, EVs simply plug into an electrical outlet. Some models of EVs can plug into a standard 120-volt outlet, while others use 240. Once charged, EVs can hold a charge for hours or days at a time.
Regardless of the outlet type, electric vehicles are infinitely cleaner than fuel-based automobiles. In fact, studies reveal that 30% of the carbon emissions in America are caused by car pollution alone.
The Dangers of Carbon Emissions
Emissions of carbon dioxide, also known as CO2, are one of the leading causes of global warming. The good news is that ever since this was discovered, researchers have been looking for effective methods to reduce further harm to the environment.
Perhaps the two most popular ways to reduce and slow global warming are solar energy and electric vehicles. There will no doubt be even more exciting innovations to come to the forefront in the future. But for now, we must work with what we have to do our part in protecting our planet.
Types of EVs
There are currently three versions of electric vehicles. Let’s examine each type to help you determine which one is the best for your needs. You may find that one can better accommodate your lifestyle more so than another.
BEVs
BEVs (Battery Electric Vehicles) are powered solely by an electric battery. As such, there is no need or use for gas engine parts. Aside from using fewer components in their construction, BEVs provide fast charging.
HEVs
HEVs (Hybrid Electric Vehicles) are low-emission vehicles that use a combination of an electric motor and gas-powered engines. However, all of the power in your HEV comes from fossil fuels.
PHEVs
PHEVs (Plug-in Hybrid Electric Vehicles) are much like HEVs. However, the former comes with a bigger battery and an electric motor. You’ll also find a gas tank and charging port on PHEVs. What’s more, if you use up all of the electrical charge, the vehicle will automatically switch to the gas engine, ensuring continuous driving.
EV Incentives in Texas
First and foremost, it’s important to remember that EVs are not cheap. Like most other things that promise benefits for the environment, there’s going to be a higher cost upfront. This is true with EVs, as well.
The good news is that the government is assisting in this area. Depending on where you live in Texas, you could be eligible for tax credits, rebates, discounts, and vouchers that help make it more affordable to register your EV.
Depending on the make and model of EV that you buy, you could even be eligible to receive as much as $7,500 back.
The state of Texas has the Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP). As such, the Texas Commission on Environmental Quality (TCEQ) has statewide rebate incentives that are available to those who buy or lease qualifying electric vehicles.
However, you will need to make sure that you apply when the application period is open. You can keep checking here to see when you can submit an application for funding.
Federal Tax Credit
The United States Government also offers anyone who buys an EV a federal tax credit of anywhere between $2,500 and $7,500. The total amount that you can receive depends on your individual tax status and the EV battery’s total capacity.
Thanks to this federal tax credit, you can claim an amount that is equal to your tax liability. It’s important to note that this is not the same as a rebate. As such, you won’t actually receive cash.
Rather, it comes in the form of a credit that goes toward the total amount you’re paying on your taxes. In order to be eligible for the federal tax credit program, you will need to meet the following requirements:
- Your purchased EV can only be either a PHEV (plug-in hybrid electric vehicle) or an AEV (all-electric vehicle). As such, all others, including hybrids, won’t qualify for the federal tax credit.
- Your electric vehicle’s battery must be capable of holding at least 4 kilowatt-hours.
- Your EV must charge via an external electrical source.
It’s worth pointing out that not all-electric vehicle makers are presently taking part in the federal tax credit program. This is because each manufacturer is limited to 200,000 vehicles of each model they make.
Therefore, you’ll want to speak with your dealership to see whether the federal tax credit is currently available on the EV you have in mind before you invest.
Benefits of EVs
While you’re likely going to spend more on upfront costs when you buy an EV, it’s important to remember that you’re going to save money in the long run. Electric vehicles are an investment that saves you from having to spend as much (if any) on gasoline or diesel fuel.
In fact, studies reveal that the average EV owner will save between $3,000 and $10,000 over the life of their vehicle compared to conventional automobiles. That’s incredible savings that keep paying you back.
Imagine not having to worry about the rising costs of gasoline or diesel fuel, especially if you invest in an AEV.
Furthermore, electric vehicles are much safer for the environment since they don’t use nearly as much fuel – or any at all!
Drawbacks of EVs
Like anything else, there are some downsides to owning an electric vehicle. Some models depreciate rather quickly, leaving you with a vehicle far less valuable than its gasoline counterpart.
And if the battery goes bad on an EV, it can be extremely expensive to replace. In some cases, you can buy a used electric vehicle for less than what a new battery costs.
These are all things to consider when deciding whether to buy an EV. That said, the money you stand to save on fuel costs alone is typically more than enough reason to invest.
Conclusion
With the potential to save on the upfront cost of an electric vehicle, it’s becoming more appealing than ever to make the switch. In doing so, you can look forward to far more pros than cons.
Be sure to check with your local government offices to see whether incentives are currently available. You should also be able to get this information from your local dealerships.
If you’re eligible, you may just find that buying an EV makes more financial sense all around.
