Program Overview
A New Mexico individual who has purchased a qualifying new or used electric vehicle – a battery electric vehicle (BEV), plug-in hybrid electric vehicle (PHEV), or hydrogen fuel-cell electric vehicle (FCEV) – from a New Mexico licensed motor vehicle dealer or a dealer located on tribal land may qualify for a Clean Car Income Tax Credit
Who is eligible?
- This State tax credit is available to individuals or businesses that purchase or lease a qualifying new or used clean vehicle before January 1, 2030. Qualifying vehicles include EVs, PHEVs, and FCEVs. For new cars, the MSRP must be $55,000 or less. For previously owned clean cars, the market value must be $25,000 or less and the vehicle year must be a maximum of two years prior to the calendar year the vehicle is purchased or leased.
- The vehicle must be purchased from a New Mexico licensed motor vehicle dealer, or a dealer located on tribal land in New Mexico.
What is offered?
The credit amounts vary based on the vehicle type and year. The maximum credit for a new clean car is $3,000 and the maximum credit for a previously-owned clean car is $2,500. See the table below for details.
How can I apply?
- Apply for a Certificate of Eligibility. Applications must be submitted no later than one year from the date of vehicle purchase.
How to Claim
Once a taxpayer has been certified and received a Certificate of Eligibility for a Clean Car Tax Credit from the Energy, Minerals and Natural Resources Department (EMNRD), the consumer may claim the Clean Car Income Tax Credit from the New Mexico Taxation and Revenue Department.
To claim the credit, attach Form TRD-41419 to your state tax return.
If you transfer the credit, notify the Taxation and Revenue Department within 10 days using Form TRD-41420.
What Incentives are Available as Part of the Clean Car State Tax Credit Program?
Tax Credit Amounts by Vehicle Type and Year
| Vehicle Type | 2024-2026 | 2027 | 2028 | 2029 |
|---|---|---|---|---|
| New EV | $3,000 | $2,220 | $1,470 | $960 |
| New PHEV or FCEV | $2,500 | $1,850 | $1,225 | $800 |
| Used EV | $2,500 | $1,850 | $1,225 | $800 |
| Used PHEV or FCEV | $2,000 | $1,480 | $980 | $640 |
Required Documents – New Vehicle Application Attachments
An application for new vehicle shall contain the following information as attachments:
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Purchase agreement, vehicle proof of purchase 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. Leased new vehicles must be for a minimum of 36 months (3 years).
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Vehicle’s registration in New Mexico.
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Vehicle purchase sticker, vehicle specification sheet, or the Monroney label that provides essential information about the car’s parts, pricing, origin, and performance. The Monroney label is your official, government-mandated source of truth about a new car’s price, equipment, and performance.
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Any additional information the Energy, Minerals and Natural Resources Department may require determining eligibility for the credit.
Required Documents – Previously Owned Vehicle Application Attachments
An application for previously owned motor vehicle certification of eligibility shall include:
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Proof of vehicle purchase 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.
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Vehicle’s registration in New Mexico;
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Vehicle purchase sticker, vehicle specification sheet, or the Monroney label that provides essential information about the car’s parts, pricing, origin, and performance. The Monroney label is your official, government-mandated source of truth about a new car’s price, equipment, and performance.
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Proof that the dealer provided at least a one-year warranty against defects and repairs for the previously owned vehicle.
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Any additional information the Energy, Minerals and Natural Resources Department may require determining eligibility for the credit.
Eligibility Guidelines
- 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.
- For a previously-owned vehicle to be eligible for the tax credit, the vehicle must have a model year that is at least two years prior to the calendar year in which the taxpayer purchased or leased the vehicle.
Frequently Asked Questions: Clean Car and Charging Units Tax Credit
1. What is the Clean Car Tax Credit?
This tax credit is a personal and business income tax credit for electric vehicles, plug-in hybrid electric vehicles and other zero-emission vehicles, as well as for home and commercial electric vehicle chargers.
2. What vehicles are eligible?
New or used electric, plug-in electric hybrid, and fuel cell motor vehicles are eligible. To be eligible for the tax credit, previously owned vehicles must have a model year that is at least two years prior to the calendar year in which the taxpayer purchased or leased the vehicle. Leased vehicles are also eligible provided the lease is for a term of at least three years.
A new vehicle must have a base manufacturer suggested retail price, before options and destination charges and before any taxes are imposed, of fifty-five thousand dollars ($55,000) or less.
A previously owned vehicle must have a market value of twenty-five thousand dollars ($25,000) or less, be certified by the certified by the dealer selling the motor vehicle and have a dealer-provided warranty of at least a one-year against defects and repairs.
A car is eligible only twice in its lifetime – once when it is sold new, and the second time when it is sold used. Any third or subsequent sales are not eligible for the tax credit.
3. What chargers are eligible?
Each level of charging offers different charging speeds and convenience, catering to various use cases and requirements of EV owners. When considering an EV charger for home or business use, it’s essential to assess your charging needs, available electrical infrastructure, and budget to choose the most suitable option. Here is an overview of the different levels of EV chargers:
Level 1: Chargers are eligible for the Clean Car Charging Unit Tax Credit:
Level 1 chargers use a standard 120-volt AC outlet, typically found in residential settings. These chargers are slow, inexpensive or free to install and can be convenient for overnight charging or in situations where faster charging isn’t necessary. Level 1 chargers typically deliver around 2 to 5 miles of range per hour of charging, depending on the vehicle’s battery capacity.
Level 2: Chargers are eligible for the Clean Car Charging Unit Tax Credit:
Level 2 chargers use a 240-volt AC outlet and are faster than Level 1, making them suitable for home charging and some public charging stations. Level 2 chargers typically deliver around 10 to 60 miles of range per hour of charging, depending on the charger’s power output and the vehicle’s capabilities. They are commonly found in residential garages, workplaces, and public charging stations.
Level 3: Charging (DC Fast Charging or DC Quick Charging) are eligible for the Clean Car Charging Unit Tax Credit:
Level 3 chargers use direct current (DC) and are significantly faster than Level 1 and Level 2 chargers. They are primarily installed in public charging stations along highways, at rest stops, or in commercial areas. Level 3 chargers can deliver high power and charge EV batteries to 80% or more in under an hour, making them suitable for long-distance travel. However, Level 3 chargers require special equipment, a special connection to the electrical grid, and are more expensive to install than Level 1 and Level 2 chargers.
4. How much are the tax credits?
The tax credits vary depending on the type of vehicle and the taxable year in which the vehicle was purchased. See tables below for details on rebate amount for vehicles and chargers.
Vehicles:
| Tax year of vehicle purchase | 2024 – 2026 | 2027 | 2028 | 2029 | |
| New | EV | $3,000 | $2,200 | $1,470 | $960 |
| Plug-in hybrid/Fuel Cell | $2,500 | $1,850 | $1,225 | $800 | |
| Used | EV | $2,500 | $1,850 | $1,225 | $800 |
| Plug-in hybrid/Fuel Cell | $2,000 | $1,480 | $980 | $640 |
Charging Unit:
| Charging unit type | Amount |
| Direct current fast charger | $ 25,000.00 |
| Fuel cell charging unit | $ 25,000.00 |
| Other electric vehicle charging units (e.g. Level 2) | $ 400.00 |
5. Who is eligible to receive the EV tax credit?
Vehicles:
Taxpayers who are not dependents of another individual and who purchase or lease (for at least three years) an electric, plug-in hybrid electric, or fuel cell motor vehicle are eligible.
Please note: to qualify for the tax credit, a person must have purchased the EV (new or used) through a dealer licensed by the New Mexico Motor Vehicle Division, or a dealer located on tribal land within New Mexico. You cannot get the credit if you purchase the car from another individual.
Chargers:
The program offers a tax credit toward the purchase and installation of qualifying electric vehicle charging equipment, and for the installation of charging units connected to electric facilities needed to serve their electric vehicle charging equipment. (Note: Level 3 charging units must be installed by a licensed electrician and connected to a utility network).
6. If I sell my used EV, do I get the tax credit?
If you sell your used electric, plug-in hybrid or fuel cell vehicle, you, as the seller, would not be eligible to claim the clean car income tax credit for that transaction. The tax credit is available to taxpayers who purchase or lease qualifying vehicles. Same with chargers. Sellers are not the recipients of Clean Car Tax Credit.
7. When are the tax credits available?
Vehicles and chargers purchased on or between May 15, 2024 through December 31, 2029, are eligible.
8. How do I get the tax credit?
Once a taxpayer who has been certified and received a certificate of eligibility for a Clean Car Tax Credit from the Energy, Minerals and Natural Resources Department (EMNRD), the consumer may claim the Clean Car Income Tax Credit from the New Mexico Taxation and Revenue Department.
To claim the credit, the taxpayer must attach to the Personal Income Tax return (PIT-1), Fiduciary Income Tax return (FID- 1), Corporate Income Tax (CIT-1), or Sub-Chapter S Corporate Income Tax return (S-Corp) the following:
- a completed Schedule CR (PIT-CR, FID-CR, CIT-CR, or S-Corp-CR);
- a completed clean car claim form, the TRD-41419;
- a copy of the certificate of eligibility from EMNRD certifying the purchase and approving the taxpayer for the credit.
A credit claim that is over the taxpayer’s liability shall be refunded. The credit can be sold, exchanged, or otherwise transferred to another taxpayer for the full value of the credit. The credit shall be claimed within three taxable years of the end of the year in which EMNRD certifies the credit. You may file your return and attach all the necessary documents to claim the credit through the Department’s electronic filing system, the Taxpayer Access Point (TAP), located at https://tap.state.nm.us/tap
For questions regarding this process, please contact Taxation and Revenue Department:
Website: www.tax.newmexico.gov
E-mail: businesscredit.mgr@tax.nm.gov
Telephone: (505) 827-0792
Mailing Address: Business Credit Claims Processing Unit, P.O. Box 5418, Santa Fe, NM, 87502-5418
9. Is this a point-of-sale rebate?
No. This is not an instant rebate, rather a tax credit incentive.
10. What if the credit is higher than the amount of tax I owe? Are the credits available in cash, or transferable?
Excess tax credits can be refunded to the taxpayer if they exceed their income tax liability. Additionally, Clean Car Tax Credit certificates of eligibility can be sold, exchanged, or transferred to others, with notification required to the Taxation and Revenue Department within ten days of the transaction.
11. I purchased a used vehicle from a private seller; does my purchase qualify for tax credit?
To qualify for the tax credit, a person must have purchased the EV (new or used) from a qualified dealer in New Mexico or a registered dealer on tribal lands. For example, you cannot get the tax credit if you purchase the car from an individual.
12. For used EV purchases, does a car dealer need to provide at least a one-year extended manufacturer’s warranty against defects and repairs?
A previously owned vehicle must have a market value of twenty-five thousand dollars ($25,000) or less, be certified by the certified dealer selling the motor vehicle and have a dealer-provided warranty of at least a one-year against defects and repairs.
13. Is Carmax a licensed dealers of clean car sales/leases?
Yes. Carmax has a brick-and-mortar location where customers can go in test drive and purchase. Carmax’s New Mexico license is set to expire 04/30/2026. ECAM cannot state if Carmax’s license will be renewed once it expires.
14. Is Carvana a licensed dealers of clean car sales/leases?
Yes.
15. How do I apply?
Clean Vehicle Tax Credit – Out-of-State Pickup FAQ
16. If I purchase a clean vehicle and the sales contract identifies the seller as a New Mexico dealer or a dealer located on tribal land, am I still eligible for the state tax credit if the vehicle is delivered to or picked up in another state?
A: Yes, if the sales contract or purchase agreement identifies the seller as a New Mexico dealer or a dealer located on tribal land, and the transaction is finalized within New Mexico. The key factor is where the sale is legally completed, not where the vehicle ends up. So if you’re buying from a qualifying dealer and the paperwork is done in New Mexico, you’re eligible to apply for the tax credit incentive.
17. I am purchasing a clean vehicle from a New Mexico dealer, but I plan to pick it up in another state. Am I still eligible for the New Mexico Clean Vehicle Tax Credit?
A: Yes. You may qualify for the state tax credit as long as the sales transaction is finalized in New Mexico and the seller is a licensed New Mexico dealer or a dealer located on tribal land within the state. The location of vehicle pickup or delivery does not affect eligibility.
18. What does it mean for the sale transaction to be finalized in New Mexico?
A: The purchase agreement must be executed in New Mexico, and the seller must be licensed by the New Mexico Motor Vehicle Division (MVD) to sell vehicles in the state.
19. Does it matter which state I pick up the vehicle from?
A: No. You may take delivery of the vehicle in any state, such as Colorado, Arizona, Texas, or others. As long as the sales transaction is completed in New Mexico through a qualifying dealer, you remain eligible.
20. What if the vehicle is shipped to me outside of New Mexico?
A: You are still eligible for the credit if the sale transaction is conducted through a qualifying New Mexico dealer and the transaction is finalized within the state.
21. How can I confirm if the dealer qualifies?
A: Review your purchase agreement to ensure the seller is listed as a licensed New Mexico dealer or a dealer located on tribal land operating within New Mexico. If you are unsure, contact the dealer directly or consult the New Mexico Motor Vehicle Division.
https://eservices.mvd.newmexico.gov/partner/_/
22. Do I need to register the vehicle in New Mexico to qualify for the tax credit?
A: Yes. The vehicle must be registered in New Mexico and applicable taxes must be paid to the state.
23. If I purchase a vehicle online, will I qualify for a tax credit?
A: Probably. To qualify for a tax credit via an online vehicle purchase in New Mexico:
- The dealership must be licensed in New Mexico, or be a dealer located on tribal land, operating within the jurisdiction of the New Mexico Motor Vehicle Division.
- The dealer’s New Mexico license number must be clearly indicated on the purchase agreement, affirming that the transaction was conducted in accordance with state regulations.
If you’re unsure whether your purchase will qualify, it’s best to contact the dealer directly or consult the New Mexico Motor Vehicle Division for guidance. https://eservices.mvd.newmexico.gov/partner/_/