For a just and equitable energy transition to become reality, it needs robust support. The kind of transformative change required to construct and implement a zero-emission economy while ensuring those dependent upon extractive industries are not left behind will take careful and considerate work. HB 140 Clean Cars Income Tax Credit is a step in that direction. By creating personal and corporate tax credits for clean cars and clean car charging units, New Mexico is making electric vehicles and our clean energy future more viable and accessible.
The way HB 140 does this is by proposing credits ranging from $400 to $25,000. The credit itself will depend on the type of car or charging unit purchased. The tax credits would have operated for tax years 2024-2029, with a sunset provision at the end of 2030. Anyone who claimed the 2021 sustainable building tax credit for charging unit purchases or installation would have been ineligible for these credits.
Most New Mexicans seeking to outfit their home with an electric vehicle charging unit will qualify for the $400 credit. When combined with utility rebates and federal tax incentives, it nearly zeroes out the purchase price of a standard Level 2 home charger. This is substantial progress toward making electric vehicle ownership an affordable reality.
While electric vehicles have had a higher initial cost than their emitting counterparts, they have proven to have a reduced cost over their lifetime. It has been shown that electric vehicle owners save an average of $7,383 over 10 years of vehicle ownership. HB 140 supports New Mexicans in purchasing the annually increasing number of new electric vehicles that will be delivered to New Mexico under recently adopted Advanced Clean Cars II and Advanced Clean Trucks standards.
Transportation, including passenger vehicles, is the second highest source of climate pollution in the state. Pollution disproportionately harms lower-income communities, communities of color, children, elders, and anyone with respiratory conditions. Zero-emission cars and trucks are the swiftest way to reduce the transportation sector’s pollution and climate emissions. By incentivizing the purchase of electric vehicles, HB 140 will save lives by reducing air pollution, helping to address the climate crisis, and saving New Mexicans money.
HB 140 did not pass but was amended into the tax omnibus bill, SB 252 Adjust Income Tax Brackets. SB 252 was signed into law by the Governor on March 6th, 2024.