New Mexico 2025 EV Tax Credits Guide [+ Calculate Your Savings]
There’s no denying that electric vehicles (EVs) can be expensive upfront. Thankfully, there are federal and state incentives like rebates and tax credits to make EVs more financially appealing.
But what state EV incentive programs are in place in New Mexico?
Let’s see what current incentives are available in your area and whether or not you qualify for them.
Last Updated: January 2025
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What EV Incentives Are Available in New Mexico?
New Mexico has no direct incentives for electric vehicles at this time, but there are post-purchase incentives available from utilities and consumer organizations to offset the initial cost of transitioning to EVs. We also update this post regularly, so check back to see if new incentives are added.
Incentives for Purchasing an EV in New Mexico
Clean Car Tax Credit:
Previously owned vehicles must come with a dealer-provided warranty of at least one year against defects and repairs.
Eligibility: The tax credit applies to new and used light-duty electric, plug-in hybrid electric, and fuel cell vehicles that meet specific criteria:
- New Vehicles: Must have a base manufacturer’s suggested retail price (MSRP) of $55,000 or less.
- Used Vehicles: Must be at least two years old with a market value of $25,000 or less.
Credit Amounts: The credit amounts vary based on the type of vehicle and the year of purchase:
2024–2026:
- New EV: $3,000
- New Plug-in Hybrid/Fuel Cell Vehicle: $2,500
- Used EV: $2,500
- Used Plug-in Hybrid/Fuel Cell Vehicle: $2,000
2027:
- New EV: $2,200
- New Plug-in Hybrid/Fuel Cell Vehicle: $1,850
- Used EV: $1,850
- Used Plug-in Hybrid/Fuel Cell Vehicle: $1,480
2028:
- New EV: $1,470
- New Plug-in Hybrid/Fuel Cell Vehicle: $1,225
- Used EV: $1,225
- Used Plug-in Hybrid/Fuel Cell Vehicle: $980
2029:
- New EV: $960
- New Plug-in Hybrid/Fuel Cell Vehicle: $800
- Used EV: $800
- Used Plug-in Hybrid/Fuel Cell Vehicle: $640
Additional Requirements:
- Vehicles must be purchased or leased from a dealer licensed in New Mexico or on tribal lands within the state.
- Leased vehicles must have a lease term of at least three years.
- Previously owned vehicles must come with a dealer-provided warranty of at least one year against defects and repairs.
Other EV Incentives Offered in New Mexico
There are various post-purchase EV incentives available in New Mexico. These include:
- El Paso Electric (EPE) gives a $1,300 rebate for home charging hardware to its residential customers. Low-income households may qualify for up to $2,500 in assistance for purchasing and installing level 2 charging equipment, with various requirements for chargers to qualify.
- Powering New Mexico (PNM) offers residential customers a $500 rebate for buying a level 2 home charger.
- Xcel Energy’s EV adoption program has a variety of incentives for EV drivers, from purchase rebates or rental rates for home charging equipment to preferential rates for charging and extra assistance for low-income customers.
Visit our EV community on Facebook to connect with other electric vehicle owners in your area and find out if specific offers are available.
Now that you know what electric vehicle incentives are available in New Mexico, what else do you need to know about making the switch to all-electric transportation?
Read our guidance on how to prepare for an EV to make sure the models you’re considering will meet your real-world driving needs!
Get Your EV Questions Answered
Thinking about buying an electric car or truck but intimidated by all the jargon?
– Where can you charge on the road?
– What do you need to charge at home?
– What EV incentives are available in your state?
