NMSA 1978, § 7-2-18.36 — 7-2-18.36

Clean car income tax credit. (Repealed effective January
1, 2031.)

# A.

A taxpayer who is not a dependent of another individual and who, beginning on
the effective date of this section and prior to January 1, 2030, purchases an electric
vehicle, plug-in hybrid electric vehicle or fuel cell vehicle or enters into a new lease of at
least three years for one of these vehicles may claim a tax credit against the taxpayer's
tax liability imposed pursuant to the Income Tax Act in an amount provided in
Subsection B of this section. The tax credit provided by this section may be referred to
as the "clean car income tax credit".

# B.

The amount of the tax credit shall be in an amount equal to:
(1) for taxable years beginning January 1, 2024 and prior to January 1, 2027:
(a) three thousand dollars ($3,000) for a new electric vehicle;
(b) two thousand five hundred dollars ($2,500) for a new plug-in hybrid
electric vehicle or fuel cell vehicle;
(c) two thousand five hundred dollars ($2,500) for a previously owned electric
vehicle; and
(d) two thousand dollars ($2,000) for a previously owned plug-in hybrid
electric vehicle or fuel cell vehicle;
(2) for a taxable year beginning January 1, 2027 and prior to January 1, 2028:
(a) two thousand two hundred twenty dollars ($2,220) for a new electric
vehicle;
(b) one thousand eight hundred fifty dollars ($1,850) for a new plug-in hybrid
electric vehicle or fuel cell vehicle;
(c) one thousand eight hundred fifty dollars ($1,850) for a previously owned
electric vehicle; and
(d) one thousand four hundred eighty dollars ($1,480) for a previously owned
plug-in hybrid electric vehicle or fuel cell vehicle;
(3) for a taxable year beginning on January 1, 2028 and prior to January 1,
2029:
(a) one thousand four hundred seventy dollars ($1,470) for a new electric
vehicle;
(b) one thousand two hundred twenty-five dollars ($1,225) for a new plug-in
hybrid electric vehicle or fuel cell vehicle;
(c) one thousand two hundred twenty-five dollars ($1,225) for a previously
owned electric vehicle; and
(d) nine hundred eighty dollars ($980) for a previously owned plug-in hybrid
electric vehicle or fuel cell vehicle; and
(4) for the taxable year beginning January 1, 2029:
(a) nine hundred sixty dollars ($960) for a new electric vehicle;
(b) eight hundred dollars ($800) for a new plug-in hybrid electric vehicle or
fuel cell vehicle;
(c) eight hundred dollars ($800) for a previously owned electric vehicle; and
(d) six hundred forty dollars ($640) for a previously owned plug-in hybrid
electric vehicle or fuel cell vehicle.

# C.

For 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.

# D.

A taxpayer shall apply for certification of eligibility for the tax credit from the
energy, minerals and natural resources department on forms and in the manner
prescribed by that department. Except as provided in Subsections I and J of this
section, only one tax credit shall be certified per taxpayer per taxable year, and only one
tax credit shall be certified per previously owned motor vehicle. The energy, minerals
and natural resources department may promulgate rules governing the procedure for
administering the provisions of this subsection.

# E.

An application for certification of eligibility shall include proof of vehicle 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, the vehicle's registration or application for title and registration in New Mexico
and any additional information the energy, minerals and natural resources department
may require to determine eligibility for the credit. If the energy, minerals and natural
resources department determines that the taxpayer meets the requirements of this
section, that department shall issue a dated certificate of eligibility to the taxpayer
providing the amount of tax credit for which the taxpayer is eligible and the taxable
years in which the credit may be claimed. The energy, minerals and natural resources
department shall provide the department with the certificates of eligibility issued
pursuant to this subsection in an electronic format at regularly agreed upon intervals.

# F.

Applications for certification of the 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.

# G.

A certificate of eligibility for the tax credit may be sold, exchanged or otherwise
transferred to another taxpayer for the full value of the credit. The parties to such a
transaction shall notify the department of the sale, exchange or transfer within ten days
of the sale, exchange or transfer in an electronic format prescribed by the department.

# H.

That portion of the tax credit claimed by a taxpayer that exceeds the taxpayer's
income tax liability in the taxable year in which a clean car income tax credit is claimed
shall be refunded to the taxpayer.

# I.

Married individuals filing separate returns for a taxable year for which they could
have filed a joint return may each claim only one-half of the tax credit that would have
been claimed on a joint return.

# J.

A taxpayer may be allocated the right to claim the tax credit in proportion to the
taxpayer's ownership interest if the taxpayer owns an interest in a business entity that is
taxed for federal income tax purposes as a partnership or limited liability company and
that business entity has met all of the requirements to be eligible for the credit. The
total credit claimed by all members of the partnership or limited liability company shall
not exceed the allowable credit pursuant to this section.

# K.

A taxpayer allowed to claim the tax credit shall claim the tax credit in a manner
required by the department. The credit shall be claimed within three taxable years of
the end of the year in which the energy, minerals and natural resources department
certifies the credit.

# L.

As used in this section:
(1) "electric vehicle" means a motor vehicle that derives all of the vehicle's
power from electricity stored in a battery that:
(a) has a capacity of not less than twenty-five kilowatt-hours;
(b) is capable of powering the vehicle for a range of at least one hundred
miles; and
(c) is capable of being recharged from an external source of electricity;
(2) "fuel cell vehicle" means a motor vehicle that:
(a) uses a fuel cell to produce electricity that is used to drive an electric motor;
and
(b) is capable of powering the vehicle for a range of at least one hundred
miles;
(3) "motor vehicle" means a vehicle with four wheels that:
(a) is required under the Motor Vehicle Code [Chapter 66, Articles 1 to 8
NMSA 1978] to be registered in this state and that is registered in this state;
(b) is made by a manufacturer;
(c) is manufactured primarily for use on public streets, roads or highways;
(d) has not been modified from the original manufacturer specifications;
(e) is rated at not less than two thousand two hundred pounds unloaded base
weight and not more than nine thousand seven hundred fifty pounds unloaded base
weight;
(f) has a maximum speed capability of at least sixty-five miles per hour; and
(g) is purchased from or leased 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;
(4) "new" means a motor vehicle that has 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;
(5) "plug-in hybrid electric vehicle" means a motor vehicle that derives part of
the vehicle's power from electricity stored in a battery that:
(a) has a capacity of not less than six kilowatt-hours;
(b) is capable of powering a vehicle for a range of at least thirty miles; and
(c) is capable of being recharged from an external source of electricity;
(6) "previously owned" means a motor vehicle that is not new, that has a
market value of twenty-five thousand dollars ($25,000) or less, that is certified by the
dealer selling the motor vehicle and for which the dealer provides at least a one-year
extended manufacturer's warranty against defects and repairs; and
(7) "tribal land" means all land owned by a tribe and located within the exterior
boundaries of the tribe's reservation or grant and all land held by the United States in
trust for the tribe.