Incentives aim to spur adoption of clean transportation alternatives
SANTA FE – The New Mexico Energy, Minerals and Natural Resources Department (EMNRD) is inviting public input on proposed rules for the state's new Clean Car Tax Credit program.
Enacted during the 2024 legislative session, the program is designed to incentivize the adoption of electric vehicles (EVs) and the installation of EV chargers across New Mexico.
“Some vehicles will be automatically eligible for the tax credit. The public comment period and rulemaking will clarify eligibility and requirements for other cars. We are excited about receiving public input before the credit rule is finalized. This will help ensure a robust, responsive, and impactful program,” said Rebecca “Puck” Stair, director of EMNRD’s Energy Conservation and Management Division (ECAM), which will administer the Clean Car Tax Credit.
EMNRD will accept public comments for thirty days, after which it will incorporate relevant feedback, publish the final rules, and begin processing tax credit applications.
'This initiative represents a significant step forward in the Lujan Grisham administration’s continuing efforts to support affordable transportation for New Mexicans while also reducing greenhouse gas emissions,' said ECAM Director Stair. 'By incentivizing the adoption of clean cars and supporting the infrastructure needed for charging, we aim to build a more sustainable future for all New Mexicans.”
Additional information on eligibility, the public comment period, and the proposed rule can be viewed on the EMNRD website.
The proposed rules are based on provisions in the law authorizing the Clean Car Tax Credits. These provisions allow for both personal and business income tax credits for electric vehicles, plug-in hybrid electric vehicles (PHEVs), fuel cell vehicles, and qualifying EV chargers for home and commercial use.
New vehicles must have a base manufacturer 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. The credits apply to vehicles and chargers purchased between May 15, 2024, and December 31, 2029.
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.