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HB 136 : ELECTRONIC VEHICLE INCOME TAX CREDIT

An Act Relating To Taxation; Creating The Electric Vehicle Income Tax Credit; Creating The Electric Vehicle Charging Unit Income Tax Credit And The Electric Vehicle Charging Unit Corporate Income Tax Credit.

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MILD HB 136
ELECTRONIC VEHICLE INCOME TAX CREDIT

Legislative URL:
HB 136 on nmlegis.gov
Emergency Clause:
No
Germane:
N/A
Location:
SFC
Action:
HPREF [5] HTPWC/HTRC-HTPWC [13] DP-HTRC- DP/a - PASSED/H (36-24) [15] SFC API.
Issue(s):
,

Related Legislators

Bill Sponsor:

Related Documents

Downloads:
Introduced
HTPWC Committee Report
HTRC Committee Report
Fiscal Impact Report
Final House Vote
Final House Vote
Summary

This piece of legislation creates three new tax credits with respect to electric vehicles as follows. All three are available until January 1, 2020.

 

The first is an “electric vehicle income tax credit” for taxpayers who purchase or lease a qualified electric vehicle. The credit is $2,500. The purpose of the credit is “to encourage consumers to purchase or lease qualified electric vehicles that may help to decrease the presence of greenhouse gas, carbon monoxide and ozone precursor emissions in the environment.”

 

The bill defines a “qualified electric vehicle” as a motor vehicle with four wheels that meets 7 criteria, including that it is manufactured primarily for use on public streets, roads or highways; is purchased or leased new; and meets speed, weight and battery capacity qualifications.

 

The second credit is the “electric vehicle charging unit income tax credit” for taxpayers who purchase and install an electric vehicle charging unit that passed inspection by a state-authorized construction-permitting governmental entity. The purpose is to “encourage businesses to purchase and install electric vehicle charging units to provide the infrastructure necessary to support the acceptance of electric vehicles that may help to decrease the presence of greenhouse gas, carbon monoxide and ozone precursor emissions in the environment.

 

The credit may not exceed the lesser of $3,000 or 30% of the cost to purchase and install the unit, or, if the unit is powered primarily by solar power, the lesser of $5,000 or 30% of the cost to purchase and install the unit. The unit may not be installed on residential property.

 

The third is the “electric vehicle charging unit corporate income tax credit” and is the same as the prior credit except that it applies to the corporate income and franchise tax rather than the regular income tax.

 

The New Mexico Taxation and Revenue Department (TRD) must compile an annual report on each of the tax credits detailing the number of taxpayers approved for the credit, the aggregate amount of credits approved and any other information necessary to evaluate the effectiveness of the credit. Beginning in 2018 and every five years after that, TRD must also prepare an analysis of the effectiveness and cost of the credit.

 

A benefit of this measure may be that the credits would encourage more people to buy electric cars and more businesses to install charging units. Questions might concern whether the credit are sufficient to provide the intended incentive.

 

Date of Summary:  1/22/2014

Outcome:

HB 136 passed the House (36-24), but died in the Senate Finance Committee.

Updated 7/31/14