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.

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.

Financial Incentive
HOV
Insurance Incentive
P
Parking Incentive
Private Charging Incentive
Utility Incentive
Utility Incentive

Plug-in hybrid-electric vehicles (PHEVs) purchased in or after 2010 may be eligible for a federal income tax credit of up to $7,500. New purchased or leased vehicles eligible. Phase out begins after 200,000 vehicles per manufacturer

Incentive Administrator: U.S. Dept. of Energy
Incentive: Financial Incentive

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)

Incentive Administrator: New Mexico Taxation and Revenue Department
Incentive: Financial Incentive

Fueling equipment for natural gas, liquefied petroleum gas (propane), liquefied hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed between January 1, 2015, and December 31, 2016, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Permitting and inspection fees are not included in covered expenses. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Consumers who purchased qualified residential fueling equipment prior to December 31, 2016, may receive a tax credit of up to $1,000. Unused credits that qualify as general business tax credits, as defined by the Internal Revenue Service (IRS), may be carried backward one year and carried forward 20 years. For more information about claiming the credit, see IRS Form 8911, which is available on the IRS Forms and Publications website. (Reference Public Law 114-113; 26 U.S. Code 30C and 38; and IRS Notice 2007-43 (PDF))

Incentive Administrator: IRS
Incentive: Financial Incentive

The New Mexico Energy, Minerals and Natural Resources Department’s Alternative Fuel Acquisition Revolving Loan Program provides loans to state agencies, political subdivisions, and educational institutions for AFV acquisitions. Funds must be used for the purchase of vehicles that operate on natural gas, propane, electricity, or hydrogen. The maximum amount of a loan per vehicle must not exceed the incremental cost of acquiring the vehicle or the following amounts:

Up to 14,000 lbs: $5,000

14,000 - 26,000 lbs: $10,000

Over 26,000 lbs: $20,000

Incentive Administrator: New Mexico Energy, Minerals and Natural Resources Department
Incentive: Financial Incentive

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.

Incentive Administrator: New Mexico Environment Department

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)

Incentive Administrator: New Mexico Department of Energy, Minerals, and Natural Resources

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.

Incentive Administrator: IRS
Incentive: Financial Incentive