The bill would create new temporary income tax credits for EVs, plug-in hybrid electric vehicles and other zero-emission vehicles
Santa Fe, N.M.—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 on Tuesday.
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.
Sen. Tallman added, “Electric vehicles are the future of transportation, but the costs and lack of charging infrastructure prevent most New Mexicans from making the transition. 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 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.