🚗 Everything You Need to Know About New Mexico EV Tax Credits (2025 Edition)
Electric vehicles are quickly becoming the future of transportation, and New Mexico is stepping up with strong incentives to support clean energy adoption. Thanks to New Mexico EV tax credits, residents can enjoy significant savings on new and used electric vehicles (EVs), plug-in hybrids, and even EV charging infrastructure. If you’re looking to go electric in the Land of Enchantment, here’s what you need to know.
💰 What Are New Mexico EV Tax Credits?
As of May 15, 2024, New Mexico offers refundable and transferable state tax credits for qualifying clean vehicles and charging equipment. These incentives are part of the Clean Car Tax Credit Program, designed to promote environmental sustainability and affordability for EV adoption statewide.
Key highlights:
- Available through December 31, 2029
- Applies to new and used EVs, PHEVs, and fuel cell vehicles
- Credits are stackable with federal tax incentives
- Income-based enhancements for low-income residents
📊 Credit Amounts Breakdown
🚘 For Vehicle Purchases or Leases
| Vehicle Type | Standard Credit | Income-Qualified Credit |
|---|---|---|
| New Electric Vehicle (EV) | $3,000 | $4,000 |
| New Plug-in Hybrid / Fuel Cell | $2,500 | $3,500 |
| Used EV (≥2 years old) | $2,500 | $3,500 |
| Used Plug-in Hybrid / Fuel Cell | $2,000 | $3,000 |
✅ Eligibility Notes:
- Must purchase from a licensed New Mexico dealer or on tribal land
- Vehicle must be registered in New Mexico
- Used vehicles must be at least 2 years old and have an MSRP below $25,000
🔌 EV Charger Tax Credit
If you’re installing an EV charger at home or for commercial use, you’re also eligible for additional savings:
| Charging Equipment | Credit Amount |
|---|---|
| Level 2 Home Charger | $400 |
| Commercial DC Fast Charger | Up to $25,000 |
These credits help offset installation costs and infrastructure expansion — a win-win for EV owners and clean energy advocates alike.
📅 Phased Reductions After 2026
While the current amounts are generous, New Mexico EV tax credits begin scaling down in 2027:
- By 2029, the new EV credit drops to $960
- Plan to purchase early to maximize your savings!
🧾 How to Apply for New Mexico EV Tax Credits
- Buy or lease an eligible vehicle through a qualified dealer.
- Visit CleanEnergyNM.org to request a Certificate of Eligibility (when the portal is live).
- Submit the certificate with your New Mexico state tax return.
- Refunds will be issued, even if you have no tax liability.
- Credits may also be transferred or sold — useful for those who don’t file state taxes.
🌟 Combine with Federal EV Tax Credit
Don’t forget — these state incentives can be combined with the federal EV tax credit:
- Up to $7,500 for new EVs (with domestic battery and assembly requirements)
- Up to $4,000 for used EVs
- Federal incentives expire after September 30, 2025, so act fast!
Quick Tip: Many dealerships apply the federal credit as an instant discount at the point of sale in 2024 and 2025.
🏠 Bonus: Sustainable Building Tax Credit
If you need to upgrade your home’s electrical system for EV charging, you might qualify for New Mexico’s Sustainable Building Tax Credit:
- $500 standard credit
- $1,000 for low-income households
This can be stacked with your charger credit and vehicle rebate for even more savings.
🌄 Why These Incentives Matter for New Mexico
New Mexico’s EV adoption rate is increasing, but it’s still behind the national average. These incentives are a critical tool to:
- Reduce transportation emissions
- Expand EV adoption in rural and underserved areas
- Support grid-friendly charging with local solar or wind energy
- Lower the barrier to entry for low- and moderate-income families
✅ Final Thoughts
Thanks to New Mexico EV tax credits, making the switch to an electric vehicle is more affordable than ever. Whether you’re buying new, going used, or just installing a charger at home, the state offers powerful tools to reduce your costs and support a cleaner future.
Don’t wait! The best rebates are available now through 2026 — and when stacked with federal incentives, you could save over $10,000 on your next EV purchase.
Ready to go electric in New Mexico?
👉 Check out our EV Buying Guide for New Mexico
👉 Compare the Best EVs Under $40K in 2025
👉 Find a Level 2 Charger with Free Shipping
