The Alternative Energy Product Manufacturers Tax Credit provides credit against combined reporting taxes (gross receipts, compensating, and withholding) for qualified manufacturers of alternative energy products, including hydrogen and fuel cell vehicle systems, and electric and hybrid electric vehicles. The credit is limited to 5% of qualifying expenditures, and manufacturers must fulfill job creation requirements to be eligible. Qualified manufacturers must apply for and receive approval from the New Mexico Taxation and Revenue Department before they may claim the credit. For more information, including eligibility and application details, refer to the Alternative Energy Product Manufacturers Tax Creditwebsite. (Reference New Mexico Statutes 7-9J-1 through 7-9J-8)
Incentives
Incentives
These incentives are subject to change and users are encouraged to inquire directly with incentive administrators. The information on this page should not be viewed as an official or legally binding document. Other requirements or exceptions may apply. For more detailed information, please consult an IRS tax representative and/or official IRS publications.
Visit this page for information about vehicle eligibility for the Federal Clean Vehicle Tax Credit.
Select your location to learn more about incentives for the purchase and ownership of an electric car. EV incentives may include financial incentives such as tax credits and other rebates, free parking, access to high occupancy commuter lanes, insurance and utility incentives.
Xcel Energy offers an annual credit of $50 for customers who charge EVs during off-peak periods. For more information see the Xcel Energy Driving Toward an Electric Future website.
EPE offers a TOU rate to commercial and residential customers that own or lease EVs. Eligible customers must be able to separately meter electricity used for EV charging. For more information, see the EPE EV Rates website.
The New Mexico Environment Department (NMED) provides funding for eligible mitigation projects for nitrogen oxides (NOx) emissions. NMED will fund up to $20,000 per eligible dual-port Level 2 EVSE installation, and up to 75% of the cost of a direct current (DC) fast charger installation. Additional requirements may apply.
The program is funded by New Mexico’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including application details, visit the New Mexico Volkswagen Settlement website.
The Sustainable Building Tax Credit provides a renovation tax credit for the purchase and installation of EV make-ready infrastructure at existing buildings. Residential properties are eligible for a $500 tax credit, increasing to $1,000 if the infrastructure is for an income-eligible resident. Commercial properties are eligible for a tax credit of 50% of the cost up to $1,500, increasing to 100% of the cost up to $3,000 if the infrastructure is for affordable housing. To be eligible, commercial buildings may not be larger than 20,000 square feet and must install wiring capable of supporting Level 2 EV charging stations at 10% of parking spaces. This tax credit is available for renovations completed between January 1, 2022, and December 31, 2027. Annual funding limits apply, with funding available on a first-come, first-served basis. For more information and additional eligibility requirements, see the SBTC website. (Reference New Mexico Statutes 7-2-18.32)
EPE offers commercial customers rebates for the installation of qualified Level 2 and direct current fast (DC Fast) EVSE. Rebates are available in the following amounts:
Applicant Type Technology Incentive Amouonts
Workplace and Business Networked Level 2 EVSE 50% of eligible costs, up to $3,500
Multi-Unit Dwelling (MUD) Networked Level 2 EVSE 75% of eligible costs, up to $5,250
Commercial Networked DC Fast EVSE 50% of eligible costs, up to $104,000
Public Transit and Fleet Networked DC Fast EVSE Up to $26,000 per EVSE; up to $37,000 for service upgrades
Public Transit and Fleet Networked Level 2 EVSE Up to $3,000 per EVSE; up to $13,000 for service upgrades
Eligible EVSE must be UL2594 listed, ENERGY STAR certified, and have Wi-Fi or cellular capabilities. Additional eligibility requirements may apply. For more information, see the EPE Commercial Rebate Programs website.
PNM offers residential customers a $300 rebate for the purchase of a Level 2 ENERGY STAR certified EVSE. Customers that purchase a qualified EVSE may also be eligible for an additional electrical panel upgrade rebate of up to $1,000. For more information, including eligibility requirements, see the PNM EV Discounts and Rebates website.
Important Information About Tax Credits:
All-electric, plug-in hybrid, and fuel cell electric vehicles purchased new in 2023 or after may be eligible for a federal income tax credit of up to $7,500. Visit this page for information about vehicle eligibility.
The availability of the credit will depend on several factors, including the vehicle's MSRP, its final assembly location, battery component and/or critical minerals sourcing, and your modified adjusted gross income (AGI).
Qualified vehicles purchased before 2023 may be eligible for a similar tax credit of up to $7,500.
Pre-owned vehicles purchased in 2023 or after are eligible for a tax credit of up to $4,000.
State and/or local tax incentives may also apply.
The information on this page applies to the Clean Vehicle Credit available to individuals and businesses. For details about the credit available to businesses and non-profit organizations, see Commercial Clean Vehicle Credit (IRS).
Note: Some qualified manufacturers have yet to submit information on eligible vehicles that meet the requirements for vehicles placed in service on or after April 18, 2023. Please check back for updated information.
More information available here
The New Mexico Department of Energy, Minerals, and Natural Resources will develop a grant program to support grid modernization technologies. Technologies include advanced metering infrastructure, energy storage systems, and electric vehicle charging systems. (Reference House Bill 223, 2020)
Azusa Light & Water offers a TOU rate to residential customers that own or lease a PEV. For more information, see Azusa’s Plug-in Electric Vehicles website.
A tax credit is available for the purchase of a new qualified plug-in electric drive motor vehicle that draws propulsion using a traction battery that has at least five kilowatt-hours (kWh) of capacity, uses an external source of energy to recharge the battery, has a gross vehicle weight rating of up to 14,000 pounds, and meets specified emission standards. The minimum credit amount is $2,500, and the credit may be up to $7,500, based on each vehicle's traction battery capacity and the gross vehicle weight rating. The credit will begin to be phased out for each manufacturer in the second quarter following the calendar quarter in which a minimum of 200,000 qualified plug-in electric drive vehicles have been sold by that manufacturer for use in the United States. This tax credit applies to vehicles acquired after December 31, 2009. For more information, including qualifying vehicles and sales by manufacturer, see the Internal Revenue Service (IRS) Plug-In Electric Vehicle Credit website. Also refer to IRS Form 8936, which is available via the IRS Forms and Publications website.
The Xcel Energy EV Accelerate at Home program provides residential customers with a Level 2 EV charging station for a flat monthly fee. The fee includes EV charging station installation and maintenance by an Xcel Energy approved electrician. For more information, see the Xcel Energy Driving Toward an Electric Future website.
Xcel Energy offers residential customers a rebate of up to $500 for the installation of a dedicated electrical circuit to support a Level 2 EV charging station. Income-eligible applicants may receive a rebate of up to $2,500. For more information, see the Xcel Energy Driving Toward an Electric Future website.
EPE offers residential customers a $500 rebate to purchase a qualified Level 2 EVSE and a $2,300 rebate for low-income customers to purchase and install a qualified Level 2 EVSE. Low-income customers are households with income equal to or less than 200% of the federal poverty level. Eligible Level 2 EVSE must be ENERGY STAR certified, networked, and have Wi-Fi or cellular capabilities. For more information, see the EPE Residential Programs website.
