The administration of New Mexico Governor Michelle Lujan Grisham has outlined new priorities for state credits towards the purchase of electric vehicles, aiming to support low-income residents and small businesses. Taxation and Revenue Department Secretary Stephanie Schardin Clarke presented the plan during a legislative hearing, which would provide tax credits and refunds for low-income residents looking to purchase an electric or plug-in electric vehicle. The proposed credits would apply to both new and used vehicles, following federal incentives.
The initiative seeks to ensure that individuals with the lowest incomes and tax liability have equal opportunities to participate in the transition towards electric vehicles. Secretary Schardin Clarke also expressed support for corporate income tax credits to encourage small businesses to adopt electric vehicles, excluding large vehicle fleets. These measures are part of Governor Lujan Grisham’s plans to pursue tax credits for electric vehicles during the upcoming legislative session in January 2024, although specific bills have not yet been introduced.
This move comes after the governor vetoed a package of tax credits proposed by Democrats in the legislative majority earlier this year. The package aimed to address climate change and reduce fossil fuel consumption, including a credit of up to $4,000 towards the purchase of electric vehicles. Governor Lujan Grisham’s veto indicated that she was not satisfied with the provisions of the proposed credits. Secretary Schardin Clarke stated that the appropriate size of tax credits for electric vehicles is still under consideration.
In addition to discussing tax credits, Monday’s hearing also explored the implications of proposed rules for automakers to increase the availability of electric cars and trucks in New Mexico. Republicans in the legislative minority criticized the plan, arguing that it would be impractical for residents in rural areas and could harm local vehicle dealerships.
It is worth noting that last year’s Inflation Reduction Act already provided a federal tax credit of up to $7,500 towards certain electric vehicles. Starting in 2024, individuals purchasing new or used electric or plug-in hybrid vehicles will be eligible for U.S. government income tax credits at the time of purchase.
Governor Lujan Grisham’s initiative seeks to expand access to electric vehicles for low-income residents and promote their adoption among small businesses in New Mexico. The proposal will likely face further discussions and potential revisions as it progresses through the legislative process.
