New Mexico Laws and Incentives for EVs

The list below contains summaries of all New Mexico laws and incentives related to EVs.

State Incentives

Alternative Fuel and Advanced Vehicle System Manufacturing Incentive

The Alternative Energy Product Manufacturers Tax Credit is a credit against combined reporting taxes (gross receipts, compensating, and withholding) for qualified manufacturers of alternative energy products, which includes 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 eligibility and application details, refer to the Alternative Energy Product Manufacturers Tax Credit Claim Form. (Reference New Mexico Statutes 7-9J)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Grants

The New Mexico Energy, Minerals, and Natural Resources Department administers the Clean Energy Grants Program, which provides grants for projects using clean energy technologies, including alternative fuel vehicles and fueling infrastructure, as well as 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. As of March 2013, funding for this program is unavailable. (Reference New Mexico Statutes 71-7)

Alternative Fuel Tax Exemption

Alternative fuel distributed by or used for U.S. government; state government; or Indian nation, tribe, or pueblo purposes; is exempt from the state excise tax. (Reference New Mexico Statutes 7-16B-5)

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. Vehicles must meet or exceed the federal corporate average fuel economy standards. Certified law enforcement pursuit vehicles and emergency vehicles are exempt from this requirement. The New Mexico Energy, Minerals and Natural Resources Department may grant additional exemptions based on the availability and suitability of vehicles, as well as fuel availability and cost.

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 per 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)

Alternative Fuel Definition

The definition of an alternative fuel includes natural gas, liquefied petroleum gas, electricity, hydrogen, fuel mixtures containing not less than 85% ethanol or methanol, and fuel mixtures containing not less than 20% vegetable oil, or a water-phased hydrocarbon fuel emulsion in an amount not less than 20% by volume. Biodiesel is defined as a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from agricultural plant oils or animal fats and meets current ASTM biodiesel standards. (Reference New Mexico Statutes 13-1B-2 and 57-19-27)

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 (or propane), compressed natural gas, and liquefied natural gas. Alternative fuel purchased for distribution is not subject to the 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. Alternative fuel distributors must be licensed by the state. In lieu of the per gallon tax, owners of alternative fuel vehicles with a gross vehicle weight rating (GVWR) not exceeding 54,000 pounds (lbs.) may pay an annual tax as follows:

For tax forms and instructions, refer to the New Mexico Taxation and Revenue Department website.

(Reference New Mexico Statutes 7-16B)