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

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

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

Commercial buildings may receive a tax credit of up to $1,500 for the purchase and installation of EVSE make-ready infrastructure, or up to $3,000 if the infrastructure is in an affordable housing building. To

be eligible, buildings may not be larger than 20,000 square feet and must install wiring capable of supporting Level 2 EVSE at 10% of parking spaces. This tax credit is available for all taxable years prior to January 1, 2030. Additional restrictions may apply. (Reference New Mexico Statutes 7-2-18.32)

Incentive Administrator: State of New Mexico
Incentive: Financial Incentive

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.

Incentive Administrator: Powering New Mexico
Incentive: Financial Incentive

Important Information About Tax Credits:

Congress recently passed new legislation—the Inflation Reduction Act of 2022—which changes credit amounts and requirements for clean energy vehicles.

Preliminary guidance from the Internal Revenue Service addresses two important issues regarding vehicles purchased in 2022:

  • If you entered into a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022, (for example, because the vehicle has not been delivered), you may claim the EV credit based on the rules that were in effect before August 16, 2022.
  • If you purchase and take possession of a qualifying electric vehicle between August 16, 2022 and December 31, 2022, final assembly of the vehicle had to be completed in North America, otherwise the same rules in effect prior to the enactment of the Inflation Reduction Act apply (including those involving the manufacturing caps on vehicles sold).


The Department of Energy has provided a list of Model Year 2022 and early Model Year 2023 electric vehicles that may meet the final assembly requirement. Because some models are built in multiple locations, there may be vehicles on the list that do not meet the final assembly requirement in all circumstances.

To identify the manufacture location for a specific vehicle, please search the vehicle identification number (VIN) of the vehicle on the VIN Decoder website for the National Highway Traffic Safety Administration (NHTSA). The website, including instructions, can be found at VIN Decoder.

We will provide more information when IRS releases additional guidance on the credits

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

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

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.

Incentive Administrator: Azusa Light & Water
Incentive: Private Charging Incentive, Utility Incentive

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