The New Mexico Clean Car Tax Credit

Governor Lujan Grisham is making clean cars like electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) more accessible by bringing more volume to the state, implementing a tax credit for New Mexico residents who purchase or lease lower-emitting cars, and building out EV charging infrastructure across the state. These efforts will make zero-emission vehicle (ZEV) ownership more accessible to low-income and disadvantaged communities, which often cannot access low-emission transportation’s financial, health, and environmental benefits.   

Learn more about the New Mexico Clean Cars Tax Credit below and this informational flyer.   

Eligible Vehicles 

The New Mexico Clean Cars Tax Credit covers any light-duty electric, plug-in hybrid, or fuel cell vehicle that is: 

  • Purchased or leased from a dealer licensed in New Mexico or on tribal lands in New Mexico. 
  • Registered and titled in New Mexico. 
  • Up to $55,000 in base MSRP for new vehicles. 
  • Up to $25,000 in value and at least 2 years old for pre-owned vehicles. 

The table below outlines the credits. The sooner you purchase an eligible vehicle, the more money you’ll get back! These credits are refundable, so you’ll get the credit even if you have no tax liability.  Check out the U.S. Department of Energy’s website to learn more about currently available EV and PHEV makes and models. 

Credits for EVs, PHEVs, and Fuel Cell Vehicles, 2024–2029 

 2024–2026  2027  2028  2029  
New EV Credit  $3,000   $2,220   $1,470   $960   
New PHEV/Fuel Cell Credit  $2,500   $1,850   $1,225   $800   
Pre-Owned EV Credit $2,500   $1,850   $1,225   $800   
Pre-Owned PHEV/Fuel Cell Credit  $2,000   $1,480   $980   $640   

Charging Stations 

Homeowners and businesses are also eligible to receive one $400tax credit per level 2 charger installed. Charging stations must be installed by a licensed electrician and connected to your local electricity network. Learn more about the different levels of chargers

Type of Credit Eligible Chargers Credit Amount 
Residential Charger Credit  Level 1 Level 2 Up to $400 
Commercial Charger Credit Direct current fast charging (DCFC) Hydrogen fueling Up to $25,000 

How to Apply 

Almost every taxpayer in New Mexico can apply for the Clean Cars Tax Credit. Both individuals and businesses are eligible to apply. 

Step 1: Apply for your credit online with the Energy, Minerals and Natural Resources Department using the online portal [**coming soon**]  

To apply, you’ll need: 

  • Proof of purchase from a licensed dealer in New Mexico. 
  • New Mexico title and registration. 

Step 2: Talk to your car dealer about transferring the credit to the dealer, so they can discount the amount from your purchase price, or pay up front and then claim it on your New Mexico income tax return when you file taxes later.  

Step 3: Check out other incentives in the next section. 

Additional Incentives 

You may be able to get even more money back through incentives that local utility companies and the federal government offer. 

Utilities 

Most of the utility companies that serve New Mexico also offer incentives for residents who install charging stations. Find your local utility company below and check out their website to learn more!  

  • PNM (serves greater Albuquerque, Rio Rancho, Los Lunas and Belen, Santa Fe, Las Vegas, Alamogordo, Ruidoso, Silver City, Deming, Bayard, Lordsburg and Clayton.) 
  • Xcel Energy (serves Artesia, Carlsbad, Clovis, Dexter, Eunice, Hagerman, Hobbs, Jal, Lake Arthur, Loving, Portales, Roswell, Texico, and Tucumcari) 
  • El Paso Electric (serves 10,000 square mile area from Hatch, New Mexico to Van Horn, Texas, including Las Cruces) 
  • New Mexico Rural Electric Cooperatives (serves many rural communities across the state) 

Federal 

The federal government offers up to $7,500 in New Clean Vehicles Tax Credit for clean vehicles purchased in 2023 or after. You can apply for this credit in addition to the New Mexico credit. 

Learn More 

Got questions? Check out our FAQs or email emnrd.taxcredits@emnrd.nm.gov 

Explore these resources to learn more about the benefits of going electric: