Texas is the backbone of American freight. With more than 80,000 registered trucking companies and one of the busiest trade corridors in the country, the state has a vested interest in keeping the trucking industry competitive. Whether you own a single truck or manage a growing fleet, there are government programs that may help with equipment purchases, driver training, fuel costs, and fleet modernization.
This guide covers the real programs available to Texas trucking companies — from direct grants and tax incentives to government-backed lending and emissions reduction programs.
Emissions Reduction and Fleet Modernization Grants
Texas Commission on Environmental Quality (TCEQ) Programs
The TCEQ administers some of the most relevant grant programs for trucking companies in Texas. The Texas Emissions Reduction Plan (TERP) provides grants to replace or repower older diesel vehicles with cleaner engines. Trucking companies may be eligible for grants covering a significant portion of the cost of replacing older trucks with newer, lower-emission models.
The Diesel Emissions Reduction Incentive (DERI) program within TERP specifically targets on-road heavy-duty vehicles. Grants can cover up to 80% of the incremental cost of upgrading to a cleaner truck. This is one of the largest direct grant opportunities available to Texas trucking companies.
EPA Diesel Emissions Reduction Act (DERA)
The federal EPA also offers DERA grants through regional programs. Texas trucking companies operating older diesel equipment may be eligible for funding to replace, retrofit, or repower vehicles. DERA grants are typically distributed through state agencies and nonprofit intermediaries.
Workforce and Driver Training Programs
Skills Development Fund
The Texas Workforce Commission's Skills Development Fund provides grants to community colleges that partner with local employers for customized training. Trucking companies can use this program to fund CDL training, safety courses, hazardous materials certification, and driver development programs. The training is delivered through a community college partnership at reduced or no cost to the employer.
On-the-Job Training (OJT) Programs
Texas Workforce Solutions offers OJT programs where employers receive reimbursement for a portion of wages paid during a new driver's training period — typically 50% to 75% of wages for up to six months. For trucking companies that invest heavily in training new CDL holders, this can meaningfully reduce onboarding costs.
Work Opportunity Tax Credit (WOTC)
The WOTC provides federal tax credits of $2,400 to $9,600 per qualifying new hire from target groups including veterans, SNAP recipients, and long-term unemployed individuals. Trucking companies hiring from these groups — which is common in the industry — can claim credits through the Texas Workforce Commission.
SBA Lending Programs for Trucking
SBA 7(a) Loans
The SBA 7(a) loan program is widely used by trucking companies for equipment purchases, working capital, and fleet expansion. While not a grant, SBA 7(a) loans provide lower interest rates, longer repayment terms, and lower down payments than conventional commercial lending. Maximum loan amounts reach $5 million.
SBA 504 Loans
For trucking companies purchasing real estate (terminals, maintenance facilities) or major capital equipment, the SBA 504 program provides long-term, fixed-rate financing with as little as 10% down. This program is structured through Certified Development Companies and is well-suited for fleet owners making significant capital investments.
Fuel and Operating Cost Programs
Alternative Fuel Tax Credits
Trucking companies transitioning to compressed natural gas (CNG), liquefied natural gas (LNG), or electric vehicles may be eligible for federal alternative fuel tax credits. The federal Alternative Fuel Vehicle Refueling Property Credit can cover a portion of the cost of installing fueling or charging infrastructure.
USDA REAP for Rural Carriers
Trucking companies headquartered in rural areas may be eligible for USDA Rural Energy for America Program (REAP) grants and loan guarantees. REAP can fund energy efficiency improvements and renewable energy systems — including solar installations at truck terminals and energy-efficient facility upgrades. See our guide to rural business grants.
Certification and Contracting Opportunities
Trucking companies that hold certain certifications can access government hauling contracts:
- HUB Certification: Texas HUB certification provides procurement preferences for state contracts, including freight and logistics work for state agencies. Learn about HUB certification.
- DBE Certification: Disadvantaged Business Enterprise certification through TxDOT opens access to federally funded transportation contracts.
- Veteran-owned certifications: SDVOSB and VOSB certifications provide federal contracting preferences for logistics and transportation services.
How Trucking Companies Should Approach Funding
- Start with TCEQ emissions programs: If you operate older diesel trucks, TERP and DERI grants are the most direct grant funding available.
- Use workforce programs for driver training: Skills Development Fund and OJT can significantly reduce CDL training costs.
- Explore SBA lending for equipment: SBA 7(a) and 504 loans offer better terms than conventional truck financing.
- Get certified for government contracts: HUB and DBE certifications open access to state and federal hauling contracts.
Find Programs That May Fit Your Trucking Business
Trucking companies in Texas are often eligible for more programs than they realize — especially emissions reduction grants, workforce training funds, and government contracting opportunities.
Not sure which programs may fit your business? Our free screening report checks your business against 150+ verified programs — grants, tax credits, loans, and incentives — and shows you which ones may match. Start your free screening →