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Specifics on why no Texas rebate

Discussion in 'Texas' started by burjoes, Apr 10, 2015.

  1. burjoes

    burjoes Member

    Apr 10, 2015
    Austin, Texas
    I have read the TCEQ's rules about the grant at

    I understand that Tesla can't sell in Texas. But according to Tesla Leasing | Tesla Motors, they CAN lease cars in Texas.

    The TERP grant rules say that the manufacturer must be able to "sell or lease" cars in Texas. It seems to me that Tesla does meet that requirement, since the leasing company is Tesla Leasing and is authorized to lease cars in Texas.

    If I can lease a car in Texas, which is not a transaction in another state, pay sales taxes in Texas as a new vehicle (slightly different than buying a CA car and then paying sales tax when it is imported), then *exactly* why is Tesla not eligible?

    I do see that Tesla would have to follow certain rules about registering, listing their vehicles, etc., but that's a different issue.

    I also know that there is a contentious issue about the whole Tesla model, and that the state may not want them to get the grant. But this is a very specific legal question as to wording that the TCEQ has claimed makes Tesla ineligible. I believe those words were written before the Tesla Business Lease was announced - the lease program was announced in April, while the TERP rebate was announced in May (from what I can tell); but the language was surely drafted in prior months.

    Has this been explored thoroughly, and if so, are there any references? The TERP money runs out in June, and they have millions left over. If it's legally available, Tesla owners should have their share.
  2. JohnQ

    JohnQ Active Member

    Jan 1, 2012
    Redding, CT
    Note that I haven't reviewed the statutes. If your reading of the statute is that Tesla should be eligible under the current requirements then you should file for the grant, wait for the denial by the appropriate agency, then file suit. I can't imagine that anything else would work given the June expiration.
  3. SoTX_WestTX

    SoTX_WestTX Member

    Jul 14, 2013
    San Antonio, TX
    I'm not a lawyer (well, not a real one, anyway), but I did a little bit of Googling this morning. I'm not saying this is "the answer", but apparently there are different ways a company can lease vehicles in Texas. Texas has two different types of leasing licenses - one for a company doing the actual leasing ("Leassor") and another called a "Leasing Facilitator", which is by definition not the company doing the actual leasing. The TxEQ documents and various other things I found reference "out-of-state leasing companies", suggesting a company can both be able to lease vehicles in Texas and NOT not be a TEXAS licensed leasing company.

    Like JohnQ said, though, lawsuits are how these things are sorted out. Someone applies, gets denied, then has to find a lawyer willing to at least do (real) research into the matter to see if there's actually a case to be made. I suppose there might be SOME lawyer out there willing to do a few hours research for a flat fee...or a lawyer Tesla-owner who has a law student clerk with nothing to do. :)
  4. Danal


    Dec 11, 2014
    Fairview, TX, United States
    From the "eligible vehicle list" on the State of TX website: Only new electric and plug-in hybrid vehicles purchased or leased from a dealer or leasing company licensed to sell or lease new vehicles in Texas may qualify. Vehicles purchased orleased directly from the manufacturer or from an out-of-state dealer or leasing company will not be eligible. The LDPLI program is available statewide.

    That's why.

    As stated before... fill out the form: Click here (PDF), turn it in, get denied, sue.

    Better hurry with those first few steps:

    Sec. 386.162. EXPIRATION. This subchapter expires August 31, 2015.
  5. EarlyAdopter

    EarlyAdopter Active Member

    Jun 24, 2012
    Redmond, WA
    You might have a better chance of someone taking the case if you could convince a couple hundred Texas Tesla owners to apply, get denied, then sue as a class.
  6. brucet999

    brucet999 Active Member

    Mar 12, 2015
    Huntington Beach, CA
    Golly, I wonder if that language could possibly ​have been aimed at a particular manufacturer?
  7. ddimit

    ddimit Member

    Aug 21, 2013
    Sacramento, California, United States
  8. CHG-ON

    CHG-ON Still in love after all these miles

    Jun 24, 2014
    Santa Cruz Mountains, USA
    Being a Californian, I will withhold comment on this issue, except to say that it is self interest that is disallowing Tesla to sell.
  9. bollar

    bollar Disgruntled Member

    May 1, 2013
    Southlake, TX
    Whose self-interest? A Tesla typically consumes more Texas-produced fossil fuel than an ICE, so it's arguably better for every sector of the economy except for car dealers. ;)
  10. polything

    polything Member

    Mar 24, 2015
    Houston, Texas (SUMMER)
    they emailed me back saying something along the line of tesla does not have franchise dealer blah blah blah
  11. Shaggy

    Shaggy Member

    Aug 9, 2015

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