House Bill 140 is Gov. Lujan Grisham’s plan to further subsidize the deployment of electric vehicles. It does so by creating two new refundable (meaning they are often not tax reductions, but spending) personal and corporate income tax credits for a six-year period beginning in tax year 2024 through tax year 2029.
First, the bill creates the refundable electric vehicle income tax credit for each electric vehicle (EV) purchase and second, it creates an electric vehicle charging unit income tax credit to cover the cost of purchasing and
installing an electric vehicle charging unit. The credit amounts for each year is as follows.
What is surprising (to us) is how modest the vehicle subsidy is ($3,000 starting out for three years) and declining over time through 2029. On the other hand the subsidy for a charging station is up to $25,000 per unit. The cost to taxpayers per year is estimated to be approximately $40 million annually.
While we see this subsidy as completely unnecessary, with New Mexico having another massive $3.5 billion surplus thanks to oil and gas, there is plenty of money available for broader tax reductions.
These subsidies primarily benefit the wealthy. According to a study published in the Energy Research Social Science Journal, the majority of EV owners are white, own a home, have multiple vehicles, and have a higher income compared to the general population. About 60% of EV owners have an annual income of more than $100,000, while only 20% have an annual income of less than $50,000.