34 Tex. Admin. Code § 3.76 - Driver Education Cars

(a) A motor vehicle dealer may take title in the dealership name to a motor vehicle tax-free if:

(1) he loans the motor vehicle free of charge to a public school for use in an approved standard driver training course; and

(2) the public school applies for exempt license plates at the time of registration.

(b) This exemption is not applicable to a loan of a motor vehicle to a private or parochial school or a nonprofit organization.