New Mexico Laws and Incentives for Alternative Fuel Purchaser

The list below contains summaries of all New Mexico laws and incentives related to Alternative Fuel Purchaser.

State Incentives

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)

Biodiesel Tax Deduction

Entities and individuals that receive biodiesel consisting of 99% vegetable oil or animal fat are eligible for a tax deduction for the fuel, provided that it is used in a federally-certified fueling system. (Reference New Mexico Statutes 7-16A-10)

Utility/Private Incentives

Natural Gas Fleet Services

Clean Energy Fuels offers services to the natural gas vehicle industry that include competitive compressed natural gas pricing for larger fleet customers, as well as alternative fuel vehicle financing.

Laws and Regulations

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)