New Mexico Electric Laws and Incentives

State Incentives

Alternative Fuel Vehicle (AFV) Manufacturing Tax Credit

The Alternative Energy Product Manufacturers Tax Credit provides a credit against combined reporting taxes (gross receipts, compensating, and withholding) for manufacturing alternative energy products, which include 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. (Reference New Mexico Statutes 7-9J)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Grants

The Clean Energy Grants Program is administered by the Energy Conservation and Management Division of the New Mexico Energy, Minerals, and Natural Resources Department and provides grants for projects utilizing clean energy technologies (including alternative fuel vehicles and fueling infrastructure) and projects that provide clean energy education, technical assistance, and training programs. These grants are provided on a competitive basis to qualifying entities such as municipalities and county governments, state agencies, state universities, public schools, post-secondary educational institutions, and Indian nations, tribes, and pueblos. (Reference New Mexico Statutes 71-7-1 to 71-7-7)

State Laws and Regulations

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Acquisition Requirements

A minimum of 75% of state government and educational institution fleet vehicles purchased must be HEVs or bi-fuel or dedicated AFVs, which includes plug-in electric vehicles. Vehicles must meet or exceed the corporate average fuel economy standards issued by the National Highway Transportation Safety Administration of the U.S. Department of Transportation. Certified law enforcement pursuit vehicles and emergency vehicles are exempt from this requirement. (Reference Senate Bill 450, 2009, and New Mexico Statutes 13-1B-3)

Alternative Fuel Vehicle (AFV) Acquisition Loans

Up to $5 million is authorized for a revolving loan fund for AFV acquisitions by state agencies, political subdivisions, and educational institutions. The maximum amount of a loan to acquire a vehicle must not exceed the actual cost of acquiring the vehicle or $3,000, whichever is less. Projected fuel cost savings from using the AFV is considered when the loan repayment schedule is developed. (Reference New Mexico Statutes 13-1B)

Neighborhood Electric Vehicle (NEV) Access to Roadways

NEVs may operate at speeds of up to 25 miles per hour (mph) and may only be used on roads with speed limits of up to 35 mph. A local authority or the New Mexico Department of Transportation may prohibit the operation of NEVs on any road under its jurisdiction if the governing body determines that the prohibition is necessary in the interest of safety. (Reference New Mexico Statutes 66-1-4.12 and 66-3-1103)

Alternative Fuels Tax

The excise tax imposed on an alternative fuel distributed in New Mexico is $0.12 per gallon. Alternative fuels subject to the excise tax include liquefied petroleum gas, compressed natural gas, and liquefied natural gas. Alternative fuel purchased for distribution is not subject to the alternative fuel excise tax at the time of purchase or acquisition, but the tax is due on any alternative fuel at the time it is dispensed or delivered into the tank of a motor vehicle. Owners of alternative fuel vehicles with a Gross Vehicle Weight Rating (GVWR) not exceeding 54,000 pounds (lbs.) may pay an annual tax in lieu of the per gallon tax, according to the following schedule:

Alternative fuel distributed by or used for U.S. government, state government, or an Indian nation, tribe or pueblo purposes, is exempt from the excise tax. Alternative fuel distributors must be licensed by the state. (Reference New Mexico Statutes 7-16B)

Alternative Fuel Vehicle (AFV) Acquisition Requirements - Albuquerque

All motor vehicles purchased by the City of Albuquerque must be dedicated, flexible fuel, or dual-fuel AFVs. Alternative fuels are defined as fuels other than gasoline and 100% petroleum diesel and may include ethanol, biodiesel, natural gas, electricity, propane, or other alternative fuels approved by the city's Chief Administrative Officer. (Reference City of Albuquerque Executive Order 19, 2006)