School Bus Incentives
Who is eligible?
Public and charter schools STATEWIDE as well as school transportation companies.
How it works?
1. Replace pre-2007 diesel bus with new cleaner bus e.g. MY 2017 or 2018 propane school bus.
2. School transportation applicant gets signed contract from TCEQ that the money is reserved.
3. School transportation applicant has 18 months to make purchase.
4. School transportation applicant makes purchase and gets reimbursed from TCEQ.
5. School transportation applicant destroys old engine within 90 days of receiving the check (hole in engine block) or removes from North America
6. Short report due once a year for 5 years.
How much can an school transportation entity get per replacement bus?
$36,500 for a Type A school bus (30 PSX or smaller)
$49,500 – $52,500 for a TYPE C school bus (full size) grant amount dependent on passenger capacity (PSX)
LIMIT 5 buses per entity.
Funding is available, first come, first serve.
Contact us at (800)325-7427 or contact TCEQ at
800-919-TERP (8377) or CleanBus@tceq.texas.gov.
Click here for more information or to apply for the clean school bus grant.
Other Incentive & Grants
State & Federal Tax & Credits
There is no longer a state motor fuel tax on propane in Texas.
The federal motor fuel tax rate on propane is a little over 13.5 cents per gallon. This is a reduced rate compared to gasoline and diesel that are taxed at the rat
At this time, the federal tax credit has not been extended for 2017.