Electric Vehicles

The Bottom Line 

  • New Mexico, Federal, Utility and Manufacturer incentives for buying or leasing new or used Battery Electric, Plug-In Hybrids and Fuel Cell Vehicles.
  • Even if you do not pay Federal taxes you still may receive an immediate discount by transferring the tax credit to the dealer at time of purchase.
  • If you do not pay State taxes you may still receive the Clean Car tax credit.
  • Limited utility incentives for low-income residents. PNM waiver if utilities are included in your rent.
  • Greater selection of EVs qualify for the credit if they are leased or used. Make sure you understand the charging capacity and any charging constraints an older used car may have.
  • Very low maintenance costs. Fuel costs of less than $1/gal equivalent if you charge an EV at home. Charger incentives too.
  • The Federal tax credit is vulnerable to the whims of the Trump administration as early as 2025.
  • More information on incentives below.

Why Electric Vehicles? 

photo of many electric cars of different colors lined up and chargingElectric vehicles (EVs) produce lower lifetime emissions (even if the electricity is generated by fossil fuels) and have 60% of the maintenance costs, lower fuel costs ($1.35 per gallon-equivalent) and lower lifetime costs* compared to gas-powered vehicles.

EVs can easily accommodate the range requirements of most Americans (who on average travel less than 50 miles daily) and for homeowners at least, convenient overnight charging fills the “tank” by morning.

EVs will be even less expensive to drive as utilities roll out “time-of-use” rates and demand-response programs. For example, PNM’s 10 pm-5 am rates will “fill the tank” for about $3.As battery range and charging networks expand and as prices come down, EVs will become more attractive to rural New Mexicans as well.Technological innovation and entrepreneurial spirit are driving advances in cleaner battery materials, recycling and repurposing batteries for other uses after their 15-20 year-life span in vehicles.     *July 2023 Cost of Ownership Report
Learn from 350NM’s own Tom Solomon on why to buy an EV through this video and slideshow.
What is best for you?  An all electric vehicle (EV)? Or a hybrid electric vehicle (HEV: gas engine + electric motor charged by gas engine and braking) or a plug-in hybrid (PHEV: an HEV that can also be charged by plugging into electricity)? Check out this Wildgrid article to see what fits you best.
Want to try out an EV before buying? 
Companies like Turo, Sixt, Hertz, and Enterprise have electric car fleets, making it easy to set up a rental.  Rental advice.
Also check out EV Shows like those organized by National Drive Electric Week (Sep 22-Oct 1, 2023). You can talk to owners and take a look at vehicles. 350NM and other NM groups often organize shows around the state.
Questions about Teslas? Visit Tesla Owners Club of NM or email: mark.hawes@verizon.net.
Look for other NM EV clubs on PluginAmerica’s State Clubs Site.
University Volkswagen Mazda in Albuquerque always has at least one EV on its lot; for questions contact General Manager/Partner 
Bob Cockerham at Cell 505-991-1891 or bob@abqvwmazda.com. Leasing is another option.
PNM also has an Electric Car Guest Drive program periodically.

The largest source of CO2 emissions in the U.S. is transportation. Ideally, we’d all walk and bike more, or at least rely on public transportation. But given the long distances many New Mexicans travel this is not always practical. By driving electric we cut down on CO2 and reduce pollution that threatens the health of 45 million Americans who live close to busy roads and transportation hubs. Widespread transition to zero emission vehicles powered by clean electricity could save New Mexicans $3 billion in health care costs, 273 premature deaths, 7,380 asthma attacks and 32,300 lost workdays by 2050.

Electric Vehicles 101

Driving an EV feels different. It is quieter. The acceleration from 0 to 60 is mind-blowing. Regenerative braking, which charges your battery, slows the car faster than coasting a gas-powered car.

An EV requires a change of mindset about fueling up – remembering to plug it in at night if you have a charger at home or having to stop more often on a road trip.

Here are some other points to consider.

On road trips, you don’t usually run your battery down close to zero.  A good software system or app plans your stops so that you are charging anywhere from 20-80% of your battery’s capacity. Sometimes, at a fast charging station, the car is done before you’ve run to the bathroom and bought a snack.
Worried about Range? For most people nearly all of the time, range is simply not an issue. Level 2 home chargers can “fill up” your EV overnight. Public, work and apartment charging networks are growing steadily, and apps will direct you to chargers, tell you how many spots are open and how long it will take to charge. If your battery is low while you are out, you can make it last longer by driving slower and turning off heat/AC.  Range is increasing with each new generation of batteries, but as these articles show, a lot of us don’t actually need as much range as we think.

Purchase Price. The average transaction price of an electric vehicle in July 2023 was $53,469  vs. gas-powered vehicles at $48,334, according to Kelly Blue Book. As more auto and battery makers scale up and innovate, aspire to federal tax credit requirements and compete in the market, EV prices are likely to fall sooner than expected.


Lifetime costs (purchase, fuel and maintenance).
EVs save consumers $6,000–$10,000 in lifetime costs compared to gas-powered cars. Assuming cleaner car regulations, a 2023 modeling study of future New Mexico adoption of electric cars, SUVs and trucks projects $14,000 – $16,800 in lifetime savings starting with 2027 models for urban residents and $5,000 (manufacturer year 2027) – $13,600 (MY2030) for rural owners.
Energy Sage estimates that nationally, it costs about $6.73 to fully charge a Nissan Leaf, $10.47 to charge a Tesla Model 3 and $14.51 for an Audi e-tron. Click on the Vehicle Cost Calculator menu below to see how an EV might save you fuel costs compared to a gas vehicle based on your driving habits.

There has been concern about sourcing battery materials especially from countries with child labor and poor environmental oversight. Some car companies are addressing this through the Initiative for Responsible Mining Assurance, direct mining supervision and the development of alternate battery materials. Federal action and the growing market has sparked a rush of lithium mining in North America and the US, which ranks 5th in lithium reserves. (US and North America critical materials Reserves). Recently the world’s largest lithium reserve was discovered in Nevada. Demand for critical minerals will increase even without EVs as they are used in personal electronics (e.g, cell phones and laptops) and in nation security (e.g., satellites and missile systems)

However, it’s important to point out the larger picture. The amount of EV materials being mined is minuscule compared to all metal mined in the world, and the amount of materials consumed by a gas-powered car is 300-400 times greater than that of an EV battery. The fossil fuels industry extracts millions-of-years old carbon that is sent into the atmosphere where it is very expensive and technologically challenging to capture and where it causes global harm via air pollution and climate change.  EV battery materials, in contrast, have local impact, stay on earth and can be recycled, ultimately reducing demand.

Investments in recycling are robust, but even before recycling, EV batteries can be repurposed. EV batteries are not like short-lifespan cell phone batteries, because they have extensive thermal management to slow degradation from temperature changes. So EV batteries that degrade to 75-80% of their capacity (after 15-20 years, 100,000-200,000 miles) are being repurposed for home, industrial and grid energy storage.

EV Metrics and Terminology

Battery size or capacity is measured in kilowatt-hours (kWh). This tells you how much energy the battery holds.  The bigger, the better. A commuter car like a Nissan Leaf might have a relatively small battery on the order of 40 kWh, while upper end cars have batteries around 100 kWh.

Range is the distance an EV can go on one charge. The larger the battery, the higher the range, generally. However, many factors affect range including the weather, topography and how fast you drive. Regenerative braking adds charge back to your battery when you brake or coast. In general, most charging stops on long trips are mapped out for when you still have a decent amount of charge in your battery, so you are not recharging the whole battery every time. These can be timed with lunch and pit stops.

Efficiency or Mileage in Miles per Gallon equivalent (MPGe). This is calculated assuming that the energy content in 1 gallon of gasoline is equivalent on average to 33.7 kilowatt-hours of electricity. A car that uses 33.7 kWhr to drive 100 miles is rated at 100 MPGe. Electric cars are extremely efficient, having miles per gallons equivalents of over 100, compared to gas-powered cars, which averaged 25 mpg in 2020. Newer gas cars are rated just shy of 40 mpg.

Battery Electric Vehicle (BEV). A all electric car that is 100% battery-powered and needs a charger.

Hybrid Electric Vehicle (HEV). A car that has a gas engine as well as an electric motor and a small battery. It cannot be charged by plugging into an electrical supply.

Plug-In Hybrid Electric Vehicle (PHEV). A car that has a gas (or other fuel) engine, electric motor and a larger sized batter than an HEV. It can be charged by plugging into a charger.

Zero Emission Vehicle (ZEV). A vehicle that emits no harmful pollutants from its power source. 

Low Emission Vehicle (LEV). California’s definition.

eGallon. eGallon is the cost to drive an EV the same distance you could go on one gallon of gas.  eGallon=(mpg comparable gas car) X (average electricity used by a EV in kWh/100mi) X (Price of Electricity).  Assuming passenger car averages 24.2 mpg, 25.6 kWh/100mi for EV and 14.81 cents/kWh for PNM = $0.91/gallon.

NEMA stands for the National Electrical Manufacturers Association.  NEMA 14-50 is a charging plug for a 240 volt outlet carrying 50 amp. Read more here.

EV technology, policy and incentives are changing fast.  A very helpful organization for information about financial incentives, EVs and chargers is PlugIn America.  Here are some other resources to stay in the loop.

Shopping for new and used EVs

Selected buying guides, car databases for sellers and buyers, and resources on loans, FAQs, trends and news.

Incentives for New and Used EVs

Manufacturer and other rebates:

    • Edmonds Rebates and Incentives  – great site for finding rebates from manufacturers, banks and for specific groups like college students, USAA members.
    • ENERGY STAR Find Incentives and Rebates.
    • Electrek Electric Vehicle Price Guide – best EV Discounts from dealers in the US.
    • Costco Auto Program and Sam’s Club Auto Buying Program may have manufacturer rebates for members.
    • For dealers offering the $4,000 used EV point of sale tax credit, check out Albuquerque micro-dealer Magpie Motors. and Ever and Recharged for some cars.
    • Starting June 1, 2024, PNM is offering a limited number (225) of $4,000 rebates on EVs to its income qualified customers (<200% Federal Poverty Level) through participating dealers on EVs costing less than $55,000. If you rent and your utilities are included in your rent, ask your landlord to sign this waiver, allowing you to participate in the PNM program. PNM is also offering a $250 rebate on Ebikes ($1000 for income qualified customers) at several local shops.
    • El Paso Electric plans to offer 50 rebates of $4,000 for a new or used EV to income qualified customers (<200% Federal Poverty Level).
The Federal EV tax credit may be eliminated by the Trump Administration.Combine Federal and New Mexico state clean car tax credits tax credits (and other rebates) for EV savings. Note taxpayer income limits, MSRP caps and restrictions on EV eligibility in the Tax Credit Tables below. To receive the state tax credit: as soon as you purchase the EV, apply for a New Mexico Clean Car certificate from the state. You will need this certificate to obtain the NM Clean Car Tax Credit when you file your taxes.To transfer the Federal tax credit to the dealer for the maximum amount, see the “Transferring the Credit” section below.USED EVs: Save up to $6,500 for a used EV costing less than $25,000 with a model year that is at least 2 years old. NM state credits will decrease over time.  Search for eligible used EVs. The federal tax credit for preowned EVs may only be used by taxpayers once every 3 years. The credit may only be used once for the EV, which must be sold by a licensed dealer.  More details.

NEW EVs:  The combined tax credit is up to $10,500 for EVs under $55,000.  New EVs under $80,000 are eligible for the federal tax credit alone.  Manufacturers who have not qualified for the Federal tax credit may have lowered their prices to compete.  Search for new EVs eligible for the federal tax credit.

LEASING: If the EV you want does not qualify for tax credits, consider leasing. There are far fewer restrictions on leasing and on used cars. You may be able to transfer your tax credit (up to $7,500; no income limitations) to the leasing company to get a lower rate.

TRANSFERRING YOUR FEDERAL CREDIT FOR MAXIMUM SAVINGS: You may transfer your Federal tax credit at the time of sale to dealers who have registered with the IRS Energy Credits Online system. In exchange for your credit you will receive an immediate discount or a downpayment.

    • You are eligible for the maximum allowed federal tax credit, even if you do not pay taxes, but only if you transfer your credit to the dealer when you purchase the EV. Check with the dealer first to confirm that they accept transfers.  You have the option of filing for the credit at tax time instead, but if you do, you may not receive the full federal credit. An example: A $24,000 used car has a maximum federal credit of $4,000 (30% of $24,000 is $7,200, but the maximum credit is $4,000). If you transfer your credit to the dealer, you will get a $4,000 discount.  If  you do not transfer your credit and wait to claim it at tax time you will only get the $4,000 if you owe that much in taxes. If you only owe $1,000 you will only get $1,000. If you owe no federal taxes, you will get $0 for the credit.
    • Participating dealers will be able to tell you right away if the car qualifies after submitting information online to IRS. Make sure you get a confirmation of the IRS Seller report before you leave the dealership. 
    • You are responsible for determining if you meet the income eligibility limits (See Tax Credit Tables below). If you do not, you will have to pay the IRS back.
    • You still have to file a tax return later with Form 8936, the Vehicle Identification Number and the successful IRS Seller report.
    • The tax credits also apply to manufacturers who sell direct to consumers, like Tesla, Rivian and Lucid. This buying process may take place on line.
MORE INFORMATION: Plug In America Federal Tax Credit Checklist for EV Shoppers.

We are not tax experts, so do not rely on this website for tax advice!