New Mexico EV incentives, tax credits and rebates

Current EV incentives in New Mexico

New Mexico residents have several financial incentives designed to ease the transition to electric vehicles and support the use of EV charging equipment. While vehicle incentives aim to lessen the purchase price of the EV itself, equipment charging incentives focus on ensuring EV owners have functional and accessible charging solutions.

The state doesn’t offer direct rebates for purchasing electric vehicles, but you can get a Clean Car Tax Credit up to $3,000 when purchasing a new EV. You can also take advantage of state tax credits when purchasing and installing EV charging equipment.

Local utilities, such as Public Service Company of New Mexico (PNM) and El Paso Electric (EPE), offer rebates to help offset the cost of purchasing and installing qualifying chargers. These rebates can range from a few hundred to thousands of dollars, making it more affordable to install efficient home charging stations.

Electric vehicle purchase incentives in New Mexico

New Mexico offers tax credits for purchasing a new or used electric vehicle. You can also take advantage of federal tax credits to reduce the cost of switching to electric.

New Mexico’s Clean Car Tax Credit lets you access a tax credit of up to $3,000 when purchasing a new EV and up to $2,500 when purchasing a used EV. New Mexico residents also can take advantage of the federal Plug-In Electric Drive Vehicle Tax Credit. This program offers federal income tax credits of up to $7,500 if you purchase a new EV.

Qualifying for the federal EV tax credit requires purchasing a vehicle for personal use. To be eligible, your modified adjusted gross income must not exceed set limits. Additionally, the vehicle MSRP can’t exceed $70,000 for vans, SUVs and pickup trucks or $55,000 for other vehicles.

The vehicle must also have a battery capacity of at least seven kilowatt hours, weigh less than 14,000 pounds and undergo final assembly in North America.

» LEARN: What are tax credits?

EV charging equipment incentives in New Mexico

EV charging equipment incentives are available for New Mexico residents through the federal government, state government and local utility companies.

The Alternative Fuel Vehicle Refueling Property Tax Credit is a federal incentive that gives you a tax credit of up to $1,000 if you install qualified vehicle refueling and recharging equipment at your home or business.

New Mexico offers the 2021 Sustainable Building Tax Credit, which provides up to a $1,000 tax credit for installing qualifying charging equipment. You can also get a Clean Car Tax Credit of up to $400 to help offset the cost of installing a qualifying charger.

If you’re a PNM customer, you may also qualify for up to a $500 rebate for the purchase of a qualifying EV home charger, plus up to $1,000 toward installation of the equipment. Income-qualified PNM customers can earn up to a $750 equipment rebate plus up to $3,500 to cover installation costs. Similar programs are also available through other New Mexico utilities, including El Paso Electric and Xcel Energy.

For example, EPE offers up to a $500 rebate for standard residential customers who apply for a qualifying smart Level 2 charging station — or up to $600 for low-income customers. Additional rebates are available if home wiring or panel upgrades are required as part of the installation process. Contact your utility provider to find out what incentives you may qualify for and eligible charging equipment.

How much can EV incentives save you in New Mexico?

Potential savings with EV incentives in New Mexico depend on several factors, so your exact rebate amount or property tax savings will vary. Here are some examples of potential savings available in New Mexico if you purchase a new Tesla Model Y, buy a used Chevy Bolt EV and install a home charger.

Example savings