The New Mexico Energy, Minerals and Natural Resources Department is accepting applications for the state’s Clean Car Tax Credit.
According to a press release, the tax credit, enacted during the 2024 legislative session, offers an income tax credit of up to $3,000 to individuals or businesses who purchase or lease an electric vehicle, plug-in hybrid electric vehicle or fuel cell vehicle. It also offers a credit of up to $25,000 for purchasing and installing a qualified vehicle charger for home or commercial use.
“With these tax credits in place, we are able to support more New Mexicans when they choose to drive low- or zero-emission vehicles,” EMNRD Secretary Designate Melanie Kenderdine said. “This is part of the Lujan Grisham administration’s overall effort to support affordable, environmentally friendly transportation options for all of our state’s residents.”
To aid lower and moderate-income New Mexicans, the law places a limit on the purchase price of qualifying vehicles and allows the credit to be claimed for used vehicles.
New vehicles must have a base manufacturer’s suggested retail price of $55,000 or less, while previously owned vehicles must have a market value of $25,000 or less and come with a dealer-provided warranty of at least one year against defects and repairs.
“These credits will make electric vehicles accessible to more New Mexicans, which will support New Mexico’s transition to clean, reliable transportation,” Taxation and Revenue Secretary Stephanie Schardin Clarke said.
The credits apply to vehicles and chargers purchased between May 15, 2024, and Dec. 31,
2029. Federal tax credits are also available for the purchase of electric vehicles and may be
combined to greatly reduce the purchase cost of an electric vehicle.
Eligible taxpayers are individuals who purchase or lease for at least three years qualifying vehicles through a licensed dealer in New Mexico or on tribal lands. To be eligible, chargers must be installed by a licensed electrician and connected to a utility network.
Visit CleanEnergy.nm.gov to learn more and apply for the tax credit. After purchasing a qualifying vehicle or charging system, taxpayers can use the online portal to submit their application.
“We created the online portal to streamline the processing of Clean Car Tax Credit applications,” said Rebecca “Puck” Stair, director of EMNRD’s Energy Conservation and Management Division, which is administering the tax credit program. “All of the information about the program — including which vehicles and chargers qualify and instructions for filling out and submitting the application — is available in this single location.”
Once an application is approved, ECAM will issue a Certificate of Eligibility, which the taxpayer must then submit to the New Mexico Taxation and Revenue Department when filing their state income tax return. If the credit exceeds the amount of taxes owed, the taxpayer will receive a refund for the excess amount.
The tax credits are transferable, which means the taxpayer receiving the credit can sell it to another individual. In some cases, taxpayers will be able to transfer the credit to the car dealer, in effect getting a discount on the car’s purchase price at time of sale.
“It will be up to individual dealers to decide if they want to transfer the credit from the consumer at the time of purchase,” Stair said. “So we have a process in place to accommodate that. The information for that process is also available on the online portal.”