Clean Car / Charging Unit Tax Credit
Clean Car and Charging Unit Tax Credit
Welcome to the New Mexico Energy, Minerals and Natural Resources Department online application website for clean car income tax credit and clean car charging unit income tax credit.
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Vehicles
A New Mexico individual who has purchased or enters a new lease of a qualifying new or used vehicle on or after May 15, 2024, and prior to January 1, 2030, from a New Mexico licensed motor vehicle dealer or a dealer located on tribal land, may be eligible to apply for clean car income tax credit certification. Applications for certification of the state tax credit shall be made no later than one year from the date on which the vehicle is purchased or the lease is entered into.
Qualifying vehicles are:
Either a battery electric vehicle (BEV), plug-in hybrid electric vehicle (PHEV), or hydrogen fuel-cell electric vehicle (FCEV)
A new clean car vehicle that has a base manufacturer suggested retail price (MSRP), before destination charges and before any taxes are imposed, of fifty-five thousand dollars ($55,000) or less.
OR
A previously owned clean car vehicle, that has a market value of twenty-five thousand dollars ($25,000) or less, for which the dealer provides at least a one-year extended manufacturer’s warranty against defects and repairs; and the vehicle year shall not exceed a maximum of two years prior to the calendar year in which the taxpayer purchased or leased the vehicle.
Definition:
Warranty may be purchased bundled in total vehicle cost, through dealer, or may be purchased as a separate transaction. Buyer’s warranty document must clearly state warranty length of minimum one year and 100% coverage for labor, and parts.
Manufacturer Suggested Retail Price (MSRP): is total vehicle price minus destination charge, regulatory fees, tax, title, and license fees.
A new lease means when a taxpayer enters into a new lease agreement of at least three years for a clean car vehicle.
A previously owned motor vehicle to be eligible for the tax credit, the vehicle shall have a model year that is at least two years prior to the calendar year in which the taxpayer purchased or leased the vehicle.
Qualifying model year used vehicle:
Previously Owned Vehicle | |
Purchase Year | Model Year |
2024 | 2022 or newer |
2025 | 2023 or newer |
2026 | 2024 or newer |
2027 | 2025 or newer |
2028 | 2026 or newer |
2029 | 2027 or newer |
Chargers
A New Mexico individual who has purchased and installed a clean car charging unit designed for charging electric vehicles, plug-in hybrid electric vehicles, or fuel cell vehicles between May 15, 2024, and prior to January 1, 2030, may be eligible to apply for clean car charging unit income tax credit certification. Applications for the state tax credit shall be made no later than one year from the date the charging unit is purchased or, if the unit is installed, the installation date.
Qualifying chargers are:
- A level one (1) and two (2) electrical vehicle charger used to provide electricity to an electric vehicle or plug-in hybrid electric vehicle.
- A level three (3) direct current fast charger must provide at least 50 kilowatts of direct current electrical power for charging an electric vehicle.
- A fuel cell charging unit is a facility or unit that dispenses liquefied or compressed hydrogen for fuel cell vehicle refueling.
Applicants must submit clean car or charging unit application to the Department for processing. Applications require supporting documentation at the time of data entry. If applications do not have complete set of required supporting documents, the application will be electronically returned to applicant for completion. In these cases, the applicant will be notified by email of the reason(s) why the Department rejected the application. The applicant may amend the application to remedy the rejection by resubmitting the application package with the requested items. Resubmitted applications must amend the signature page. The resubmitted application will be placed back at the beginning of the queue as if it were a new application.
An applicant who completes an application via the web portal will receive a confirmation email that the application submission was successful. That email message will include a unique link to check the status of the application. Please allow 3-4 weeks for application processing. When a certificate of eligibility for the clean car income tax credit is available for retrieval, the Department will send the applicant an email notification. Once you have received your certificate of eligibility from the Department, you may then claim your clean car income tax credit against your tax liability with Taxation Revenue Department.
Clean Car Required Documents:
An application for new or leased vehicle must include the following information as attachments:
(1) Purchase agreement, or proof of purchase from, or proof of new lease through, a dealer licensed by the motor vehicle division of the department pursuant to Section 66-4-2 NMSA 1978 or a dealer located on tribal land within New Mexico.
(2) The vehicle’s registration in New Mexico.
(3) Vehicle purchase sticker or vehicle specification sheet.
(4) Any additional information the energy, minerals, and natural resources department may require determining eligibility for the credit.
An application for previously owned motor vehicle certification of eligibility must include:
(1) Proof of purchase from, or lease through, a dealer licensed by the motor vehicle division of the department pursuant to Section 66-4-2 NMSA 1978 or a dealer located on tribal land within New Mexico.
(2) The vehicle’s registration in New Mexico.
(3) Vehicle purchase sticker or vehicle specification sheet.
(4) Proof that the dealer provided at least a one-year warranty against defects and repairs for the previously owned vehicle.
(5) Any additional information the energy, minerals and natural resources department may require in determining eligibility for the credit.
Clean Car Charging Unit Required Documents:
An application for a clean car charging unit personal income tax credit must contain the following information as attachments:
(1) Proof of clean car charging unit purchase.
(2) Post-installation digital photo of the operating clean car charging unit.
(3) Clean car charging unit specification sheet containing:
(a) For an electrical charging unit: connector type(s), plug type(s), manufacturer, model, serial number, voltage, and amperage of the electric vehicle charging unit, and whether the electrical current is alternating or direct.
(b) For a fuel cell charging unit: technical specifications on the fuel dispensing unit and fuel storage system, including operational pressures of the fuel cell charging unit.
(c) The specification sheet must match the charging unit submitted for the tax credit.
(4) A copy of any applicable building code authority inspections, including permit number, issuance date, and date of inspection, noted on a physical form, or a photo of inspection sticker or a web-based report approved by the applicable building code authority, or similar document if applicable.
(5) Any additional information the energy, minerals and natural resources department may require in determining tax credit eligibility.
Links:
Online application portal: https://wwwapps.emnrd.nm.gov/ECMD/CleanCarSubmissions/
Auto Dealer Job Aid Clean Car (temporarily unavailable)
Job Aid Clean Car Charging Unit Tax Credit (temporarily unavailable)
Locate additional FAQs: https://www.emnrd.nm.gov/ecmd/faq/
Rule 3.3.36 NMAC, Clean Car Tax Credit, Personal Income Tax
Rule 3.3.37 NMAC, Clean Car Charging Unit Tax Credit, Personal Income Tax Credit
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Rule 3.4.24 NMAC, Clean Car Charging Unit Tax Credit, Corporate Income Tax