SANTA FE — Gov. Michelle Lujan Grisham’s proposal for a new tax credit to help New Mexicans purchase zero-emission cars and light trucks cleared its first committee today.
The House Energy, Environment and Natural Resources Committee voted 6-3 to recommend passage of House Bill 140.
The bill would create new temporary income tax credits for electric vehicles, plug-in hybrid electric vehicles and other zero-emission vehicles. The bill also proposes tax credits for home and commercial electric vehicle chargers.
The bill is sponsored by Reps. Dayan Hochman-Vigil and Yanira Gurrola and Sen. Bill Tallman.
“We know there’s consumer demand for these vehicles, and our complementary Clean Car Rules and these tax credits ensure these vehicles are more affordable and accessible to every New Mexican,” said Gov. Lujan Grisham.
“Every New Mexican deserves to benefit from the lower lifetime cost of ownership, freedom from pain at the gas pump, and improved air quality in their communities that comes with more alternate-fueled vehicles on our streets,” said Rep. Hochman-Vigil.
“New Mexicans expect us to do everything we can to make electric vehicles more affordable,” said Rep. Gurrola. “These tax credits reduce the cost of EV ownership and increase charging options more throughout our state.”
“Electric vehicles are the future of transportation, but the costs and lack of charging infrastructure prevent most New Mexicans from making the transition,” said Sen. Tallman. “Now is the time to provide simple subsidies to make zero-emission vehicles and charging infrastructure more accessible.”
The New Mexico Environmental Improvement Board in November approved new clean transportation standards that require automakers to increase the percentage of zero-emission vehicles delivered to New Mexico dealerships. The tax credits will make electric vehicles more affordable to New Mexicans as more of these vehicles become available in the state.
“The clean car tax credits proposed today will be a powerful tool to put zero-emission vehicles within reach for thousands of New Mexicans. That’s good for consumers, good for business, and good for our environment,” said Taxation and Revenue Secretary Stephanie Schardin Clarke.
“With this state tax credit, New Mexicans will soon have greater consumer choice as new and used clean vehicles will become even more affordable,” said Environment Department Cabinet Secretary James Kenney. “Owning or leasing an electric vehicle improves air quality while reducing water pollution and saves the driver money as compared to gas and diesel vehicles.”
Transportation emissions is the second largest source of greenhouse gas emission in New Mexico and these emissions contribute to the formation of smog – a pollutant that causes respiratory problems. In addition, New Mexico taxpayers have spent over $17.5 million since 2019 for the clean-up of hydrocarbons that were released into our environment. Another $32.9 million was paid by responsible parties since 2019 for the clean-up of hydrocarbons into our environment.
The proposed tax credits would be available on new and used electric, plug-in hybrid electric, and fuel cell vehicles, and would be in addition to any federal credits that might apply. The credit would be available on purchases and on leases of at least three years.
Under the bill, from 2024 through Jan. 1, 2026, taxpayers could claim an income tax credit of $3,000 for a new electric vehicle; $2,000 for a plug-in hybrid electric or fuel cell vehicle; $1,500 for a previously owned electric vehicle and $1,000 for a previously owned hybrid electric or fuel cell vehicle.
Credits would need to be approved by the Energy, Minerals and Natural Resources Department (EMNRD) and would be administered by the Taxation and Revenue Department.
“EMNRD welcomes the opportunity to support another tax credit program that will bolster our state’s efforts to reduce emissions and transition to a clean-energy future,” said EMNRD Deputy Secretary Dylan Fuge. “Our Energy Conservation and Management Division has experience administering similar programs and is confident we can quickly expand that infrastructure to support these new programs.”