New Mexico Governor Announces Plan For EV Tax Credits

The Roundhouse in Santa Fe. Post file photo

From the Office of the Governor:

  • Issues executive order transitioning state fleet to ZEVs by 2035 

ALBUQUERQUE – Gov. Michelle Lujan Grisham announced today her intention to pursue tax credits for electric vehicles during the upcoming legislative session.

The governor made the announcement during her Symposium on the Future of Transportation in New Mexico. In addition, the governor signed today an executive order directing the state fleet to transition to zero-emission vehicles (ZEVs) by 2035.

“The fact of the matter is that consumers and dealers want better access to electric vehicles, and the actions we’ve taken through Clean Car rules and now tax credits are leveling the playing field,” Gov. Lujan Grisham said. “I also took action today to make sure the state is ‘walking the walk’ when it comes to widely adopting low- and zero-emission vehicles by requiring the state fleet to be zero-emission by 2035.”

The governor’s proposed tax credits would apply to new and used electric vehicles to help meet the state’s and the country’s climate goals. Part of New Mexico’s electric vehicle transition funding comes from President Biden’s Bipartisan Infrastructure law, which is expected to allocate an estimated $38.6 million to the state supporting the use of electric vehicles.   

“By convening more than 300 stakeholders from auto dealers to environmental advocates, the Governor is moving not only the conversation forward but the actions being taken around the state to increase the availability of vehicles and charging infrastructure,” said Martin J. Chavez, Infrastructure Advisor to the Governor.  

“If we are going to move the state forward into a lower-carbon future, these tax credits are vitally important,” said Sen. Benny Shendo, Chair of the Senate Tax, Business and Transportation Committee. “I’m grateful to the governor for her support of this important initiative.” 

“Tax credits are a critical piece of making sure that electric vehicles are not only accessible but also affordable,” said Rep. Dayan Hochman-Vigil, Chair of the House Transportation, Public Works and Capital Improvements Committee. “Thank you to Gov. Lujan Grisham for supporting tax credits in the upcoming session, and I’m looking forward to working with my colleagues to get these across the finish line.”  

The state’s transition to clean cars is well underway. Gov. Lujan Grisham and the New Mexico Energy, Minerals and Natural Resources Department secured $700 million through Charging Fuel Infrastructure Grants, the legislature secured $10 million in America Recovery Plan Act funding, and earlier this year, the governor announced the state’s move toward adopting Advanced Clean Cars and Trucks rules reducing more than 76 million metric tons of carbon dioxide emissions when fully implemented.   

The executive order signed by the governor directs departments to purchase zero-emission vehicles (ZEVs) for all new acquisitions where one or more options are available. Agencies with 10 or more vehicles will work with the Transportation Services Department to develop and submit a data-driven strategic plan to the Office of the Governor that includes proposed annual ZEV acquisition and charging equipment deployment targets annually. The executive order allows for some exceptions, including law enforcement and firefighting vehicles.

The signed order:

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