Tax credits, new EV standards meeting the climate emergency
New Mexico is making big progress on clean transportation, which ranks behind only oil and gas among climate polluters in the state. After the hottest year on record, action couldn’t come soon enough.
At her Transportation Symposium in October, Gov. Michelle Lujan Grisham issued an executive order to electrify the state’s vehicle fleet by 2035. This will save the state money on maintenance and gasoline.
The governor also announced her commitment to a robust state tax credit for electric vehicles in the 2024 legislative session. The bill that passed the Legislature last session allocated $10 million annually until 2028 to provide buyers with a credit that could be discounted directly by auto dealers at point of purchase or received as cash back on your tax return if you don’t have a tax liability. The bill included an increased $4,000 credit to lower-income buyers and $2,500 to other consumers.
Last year, the governor rightly said we hadn’t gone big enough on our climate tax credits. So it’s exciting to see her meet the moment of the climate emergency by including not just new but used cars and advocating for the credit at the point of sale.
In November the New Mexico Environmental Improvement and Albuquerque-Bernalillo Air Quality Control boards passed Clean Cars and Trucks standards. Clean Cars and Trucks, which require automakers to provide increasing percentages of EVs to New Mexico, will literally save lives, preventing 144 premature deaths and 80,547 health incidents, according to a recent study by ERM.
The standards also require reduced tailpipe pollution from trucks. Kids exposed to transportation pollution have higher rates of asthma and missed days at school. The cleaner our vehicles are, the better off our climate is and the healthier the families living along transportation corridors are.
As for buying your EV, with federal and possible utility and state EV credits, lower- and middle-income families could see as much as $15,500 off the price of a car, say a $28,000 Nissan Leaf. EV drivers can then expect up to $16,000 in additional savings on operations and fuel over the lifetime of the car.
Worried about charging? Remember that 80% of EV owners charge at home. The lion’s share of most people’s daily driving is easily covered by their overnight charge. PNM has lower electric rates for those who charge EVs — 3 cents/ Kwh if you charge after 10 p.m. — which can be done even on a regular plug. The Sustainable Buildings Tax Credit gives up to $1,000, depending on income, to homeowners for charger installation. And PNM rebates $500 toward a fast charger with an option for up to $2,000 for installation, depending on income. Check out ev.pnm.com to find out what you’re eligible for.
For those worried about taking long trips, the governor’s transportation summit also highlighted the EV charger buildout taking place throughout the state thanks to $38 million in federal funding. You can see the network of 675 charging stations on the NMDOT website.
To further help, the Construction Industries Board this month is considering building requirements to include EV charges, in addition to further energy efficiency requirements that will save occupants money, not to mention slow emissions.
EVs are affordable, reliable, low-maintenance, and cost the equivalent of about 75 cents per “gallon” to drive, but, and maybe more importantly, they keep the air clean for our kids and protect our climate for our grandkids.
If you’re worried about climate change, take that first step and join us, the governor, her administration and so many neighbors in electrifying your car and your home. Let’s act, for our families, for our future.