Hometown News

To target this tax relief to lower and moderate-income New Mexicans, the law placed 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.

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 EMNRD’s website at 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.

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.