New Mexico drives towards sustainability with Clean Car Tax Credit

Michelle Lujan Grisham, Governor

Melanie A. Kenderdine, Cabinet Secretary Designate

Dylan Fuge, Deputy Cabinet Secretary

Rebecca “Puck” Stair, Energy Conservation and Management Division Director

FOR IMMEDIATE RELEASE:

Contact: Sidney Hill

Public Information Officer, EMNRD

sidney.hill@emnrd.nm.gov

May 15, 2024

New Mexico drives towards sustainability with Clean Car Tax Credit

SANTA FE – Today marks a significant milestone for New Mexico’s commitment to sustainability as the Clean Car Tax Credit comes into effect. Spearheaded by Governor Michelle Lujan Grisham, this tax credit, nestled with the omnibus tax package passed during the 2024 legislative session, offers substantial incentives for both individuals and businesses to embrace cleaner transportation alternatives.

Under this initiative, eligible individuals can receive up to $3,000 in tax credits towards the purchase or lease of new or used electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), or fuel cell vehicles. Additionally, there’s a provision for tax credits for the installation of electric vehicle chargers or fuel cell vehicle charging equipment.

"Incentivizing the adoption of electric vehicles and supporting the infrastructure for their use are significant steps towards achieving Gov. Lujan Grisham’s ambitious climate goals,” said Melanie A. Kenderdine, EMNRD Cabinet Secretary Designate of EMNRD. “This initiative reduces emissions and fosters economic growth in New Mexico, aligning two key objectives of the Governor.”

Administered by the Energy Conservation and Management Division of the Energy, Minerals and Natural Resources Department (EMNRD), the Clean Car Tax Credit program signals New Mexico’s proactive stance towards reducing emissions and fostering economic growth.

While the tax credit is available immediately, the online application is scheduled to open in late summer 2024. New Mexico residents who purchase a clean car between May 15, 2024, and the portal’s opening will still be eligible for the credit once the application portal is operational.

It is noteworthy that there is no cap on Clean Car tax credits, ensuring that all eligible New Mexicans can benefit from the from this program. Taxpayers can claim credits for vehicles purchased or charging equipment installed in 2024 when they file for tax year 2024 in early 2025.

For information on the application process and documents, individuals can visit the EMNRD website at: https://www.emnrd.nm.gov/ecmd/ .

"This tax credit brings clean cars into reach for many New Mexicans," says Rebecca “Puck” Stair , Director for the Energy Conservation and Management Division . "Clean cars are easy to maintain and are cheap to ‘fuel’ and own."

The tables below outline eligible credit amounts for specific vehicles and chargers:

Clean Car Tax Credit amounts:

Tax year of vehicle purchase

2024 - 2026

2027

2028

2029

New EV

$3,000

$2,200

$1,470

$960

Plug-in hybrid/Fuel Cell

$2,500

$1,850

$1,225

$800

Used EV

$2,500

$1,850

$1,225

$800

Plug-in hybrid/Fuel Cell

$2,000

$1,480

$980

$640

Charging Unit Tax Credit amounts:

Charging unit type

Amount

Direct current fast charger

$25,000

Fuel cell charging unit

$25,000

Other electric vehicle charging units (e.g. Level 2)

$400

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Sidney Hill

Public Information Officer

New Mexico Energy, Minerals and Natural Resources Department (EMNRD)

Email: sidney.hill@emnrd.nm.gov

Phone: 505-629-2900