New Mexico’s newest tax credits for electric vehicles
New Mexicans can chip thousands of dollars off of buying a new or preowned electric vehicle with some of the state’s newest tax credits.
Combined with federal tax credits, that could mean over $10,000 in savings for a new EV and over $6,000 in savings for a used EV.
Gov. Michelle Lujan Grisham in March signed off on two new refundable personal and corporate income credits for electric vehicles as part of New Mexico’s tax package.
The tax credits are eligible for purchases of electric vehicles, plug-in hybrid electric vehicles or fuel cell vehicles. It’s also applicable for new leases that are at least three years long.
The tax credits, listed below, are the same for personal and corporate filers and are good through tax year 2029.
TAX YEARS 2024-2027
New EV: $3,000
New plug-in EV or fuel cell vehicle: $2,500
Used EV: $2,500
Used plug-in hybrid or fuel cell vehicle: $2,000
TAX YEARS 2027-2028
New EV: $2,200
New plug-in EV or fuel cell vehicle: $1,850
Used EV: $1,850
Used plug-in hybrid or fuel cell vehicle: $1,480
TAX YEARS 2028-2029
New EV: $1,470
New plug-in EV or fuel cell vehicle: $1,225
Used EV: $1,225
Used plug-in hybrid or fuel cell vehicle: $980
TAX YEAR 2029
New EV: $960
New plug-in EV or fuel cell vehicle: $800
Used EV: $800
Used plug-in hybrid or fuel cell vehicle: $640
Used cars are eligible for the tax credit if the model is at least two years older than the year it’s bought or leased. A pre-owned car also must have a market value of $25,000 or less.
New cars must have a suggested retail price of $55,000 or less before tax.
There are also tax credits for charging infrastructure.
There’s a $25,000 max tax credit for a direct current fast charger, which provides at least 50 kilowatts of power to charge, or fuel cell charging unit, or — if it’s less — the actual purchase and installation cost.
There’s a $400 tax credit for all other EV charging units, or the cost of purchase and installation, if it’s less.
If the tax credits for the cars or charging infrastructure exceed a taxpayer’s income tax liability, the remainder is refunded to the taxpayer.
Applications must be filed within a year of buying or entering a lease for the car or charging station with the New Mexico Energy, Minerals and Natural Resources Department.
The new state tax credits are on top of federal credits.
There’s a federal tax credit of up to $7,500 for new EVs, plug-in hybrids and fuel cell EVs. For pre-owned EVs, plug-in hybrid and fuel cell EVs, the federal tax credit is 30% of the sale price with a maximum credit of $4,000. That’s a nonrefundable credit.
And like New Mexico, there’s a federal tax credit for charging stations, available for infrastructure set up between 2022 and 2033. For consumers, the credit is 30% of the unit cost or $1,000, whichever is less. For businesses and some tax-exempt organizations, the tax credit is generally 6% of cost or $100,000, whichever is less.