Bill Summary – FastDemocracy

SB0008

SENATE BILL 8

56th legislature - STATE OF NEW MEXICO - second session, 2024

INTRODUCED BY

Bill Tallman and Natalie Figueroa

AN ACT

RELATING TO ELECTRIC MOTOR VEHICLES; CREATING THE ELECTRIC VEHICLE INCOME TAX CREDIT; CREATING THE ELECTRIC VEHICLE CHARGING UNIT INCOME TAX CREDIT; REQUIRING AN ADDITIONAL REGISTRATION FEE FOR ELECTRIC AND PLUG-IN HYBRID ELECTRIC VEHICLES; PROVIDING THAT THE ADDITIONAL REGISTRATION FEES BE DISTRIBUTED TO THE STATE ROAD FUND AND THE TRANSPORTATION PROJECT FUND.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. A new section of the Income Tax Act is enacted to read:

"[NEW MATERIAL] ELECTRIC VEHICLE INCOME TAX CREDIT.--

A. A taxpayer who is not a dependent of another individual and who, on or after May 15, 2024 and prior to January 1, 2029, purchases an electric vehicle or enters into a new lease of at least three years for an electric vehicle may claim a nonrefundable credit against the taxpayer's tax liability imposed pursuant to the Income Tax Act. The tax credit provided by this section may be referred to as the "electric vehicle income tax credit".

B. The electric vehicle income tax credit shall be in an amount equal to three thousand two hundred fifty dollars ($3,250).

C. A taxpayer who seeks to claim the tax credit provided by this section shall apply for certification of eligibility from the energy, minerals and natural resources department on forms and in the manner prescribed by that department. Completed applications for the tax credit shall be considered in the order received. Except as provided in Subsection G of this section, only one electric vehicle income tax credit shall be allowed for each electric vehicle purchased or leased. The application shall include proof of purchase or lease, the electric vehicle's registration or application for registration and any additional information that the energy, minerals and natural resources department may require to determine eligibility for the credit. Applications for certification of an electric vehicle income tax credit shall be made no later than one calendar year from the date on which the electric vehicle is purchased or the lease is entered into.

D. If the energy, minerals and natural resources department determines that a taxpayer meets the requirements to claim a tax credit pursuant to this section, that department shall issue to the taxpayer a dated certificate of eligibility providing the amount of the tax credit for which the taxpayer is eligible and the taxable year in which the credit may be claimed. The aggregate amount of electric vehicle income tax credits that may be certified in any taxable year is ten million dollars ($10,000,000). If a taxpayer applies for and meets the requirements for a tax credit pursuant to this section, but the maximum aggregate amount of credits have been certified for that taxable year, the energy, minerals and natural resources department shall issue the taxpayer a certificate of eligibility for the next taxable year in which there are available certifications.

E. To receive a tax credit provided by this section, a taxpayer shall apply to the department on forms and in the manner prescribed by the department. The application shall include a certificate of eligibility issued pursuant to this section. A taxpayer shall not be allowed to claim more than one tax credit provided by this section per taxable year.

F. A certificate of eligibility for an electric vehicle income tax credit may be sold, exchanged or otherwise transferred to another taxpayer for the full value of the credit. The parties to such a transaction shall notify the energy, minerals and natural resources department of the sale, exchange or transfer within ten days of the sale, exchange or transfer.

G. Married individuals filing separate returns for a taxable year for which they could have filed a joint return may each claim only one-half of the electric vehicle income tax credit that would have been claimed on a joint return.

H. A taxpayer allowed an electric vehicle income tax credit shall report the amount of the tax credit to the department on forms and in a manner required by the department.

I. As used in this section:

(1) "electric vehicle" means a new motor vehicle registered or purchased in New Mexico that derives all or part of the vehicle's power from electricity stored in a battery that:

(a) has a capacity of not less than six kilowatt-hours;

(b) is capable of powering the vehicle for a range of at least forty miles; and

(2) "motor vehicle" means a vehicle with four wheels that:

(a) is required under the Motor Vehicle Code to be registered in this state;

(b) is made by a manufacturer;

(c) has a base manufacturer suggested retail price, before options and destination charges, of fifty- five thousand dollars ($55,000) or less, before any taxes are imposed;

(d) is manufactured primarily for use on public streets, roads or highways;

(e) has not been modified from the original manufacturer specifications;

(f) is rated at not less than two thousand two hundred pounds unloaded base weight and not more than nine thousand seven hundred fifty pounds unloaded base weight; and

(g) has a maximum speed capability of at least sixty-five miles per hour."

SECTION 2. A new section of the Income Tax Act is enacted to read:

"[NEW MATERIAL] ELECTRIC VEHICLE CHARGING UNIT INCOME TAX CREDIT.--

A. A taxpayer who is not a dependent of another individual and who, on or after May 15, 2024 and prior to January 1, 2029, purchases and installs an electric vehicle charging unit in New Mexico may apply for, and the department may allow, a nonrefundable credit against the taxpayer's tax liability imposed pursuant to the Income Tax Act. The tax credit provided by this section may be referred to as the "electric vehicle charging unit income tax credit".

B. The electric vehicle charging unit income tax credit shall not exceed three hundred dollars ($300) or the cost to purchase and install an electric vehicle charging unit, whichever is less.

C. A taxpayer who seeks to claim the tax credit provided by this section shall, no later than one calendar year from the date on which the electric vehicle charging unit is purchased and installed, apply for certification of eligibility from the energy, minerals and natural resources department on forms and in the manner prescribed by that department. Completed applications shall be considered in the order received. An application for certification of eligibility shall include a receipt for the purchase of the electric vehicle charging unit, a copy of the data sheet that specifies the connector type, plug type, voltage and current of the electric vehicle charging unit and any additional information that the energy, minerals and natural resources department may require to determine eligibility for the credit.

D. If the energy, minerals and natural resources department determines that a taxpayer meets the requirements to claim a tax credit pursuant to this section, that department shall issue a dated certificate of eligibility to the taxpayer providing the amount of the tax credit for which the taxpayer is eligible and the taxable year in which the credit may be claimed. The aggregate amount of electric vehicle charging unit income tax credits that may be certified as eligible in any taxable year is one million dollars ($1,000,000). If a taxpayer applies for and meets the requirements for a tax credit pursuant to this section, but the maximum aggregate amount of credits have been certified for that taxable year, the energy, minerals and natural resources department shall issue the taxpayer a certificate of eligibility for the next taxable year in which there are available certifications.

F. Married individuals filing separate returns for a taxable year for which they could have filed a joint return may each claim only one-half of the electric vehicle charging unit income tax credit that would have been claimed on a joint return.

G. A taxpayer allowed a tax credit pursuant to this section shall report the amount of the tax credit to the department on forms and in a manner required by the department.

H. As used in this section:

(1) "electric vehicle" means a motor vehicle subject to the registration fee pursuant to Section 66-6-2 or 66-6-4 NMSA 1978 that derives all or part of the vehicle's power from electricity stored in a battery that:

(a) has a capacity of not less than six kilowatt-hours;

(b) is capable of powering the vehicle for a range of at least forty miles; and

(2) "electric vehicle charging unit" means a device that:

(a) is used to provide electricity to an electric vehicle;

(b) is designed to create a connection between an electricity source and the electric vehicle;

(c) uses the electric vehicle's control system to ensure that electricity flows at an appropriate voltage and current level; and

(d) is installed on residential property located in the state."

SECTION 3. A new section of the Motor Vehicle Code is enacted to read:

"[NEW MATERIAL] ADDITIONAL REGISTRATION FEE--ELECTRIC AND PLUG-IN HYBRID ELECTRIC VEHICLES.--

A. For registration of vehicles subject to the registration fees imposed by Sections 66-6-2 and 66-6-4 NMSA 1978, there is imposed an additional annual fee of one hundred twenty dollars ($120) for which an electric vehicle with a gross vehicle weight of twenty-six thousand pounds or less is registered.

B. For registration of vehicles subject to the registration fees imposed by Sections 66-6-2 and 66-6-4 NMSA 1978, there is imposed an additional annual fee of sixty dollars ($60.00) for which a plug-in hybrid electric vehicle with a gross vehicle weight of twenty-six thousand pounds or less is registered.

C. All fees collected pursuant to this section shall be paid to the state treasurer to the credit of the motor vehicle suspense fund with distribution in accordance with Section 66-6-23 NMSA 1978.

D. As used in this section:

(1) "electric vehicle" means a motor vehicle that derives all of the vehicle's power from electricity stored in a battery that:

(a) has a capacity of not less than six kilowatt-hours;

(b) is capable of powering the vehicle for a range of at least forty miles; and

(2) "plug-in hybrid electric vehicle" means a motor vehicle that derives part of the vehicle's power from electricity stored in a battery that:

(a) has a capacity of not less than six kilowatt-hours;

(b) is capable of powering the vehicle for a range of at least forty miles; and

SECTION 4. Section 66-6-23 NMSA 1978 (being Laws 1978, Chapter 35, Section 358, as amended) is amended to read:

"66-6-23. DISPOSITION OF FEES.--

A. After the necessary disbursements for refunds and other purposes have been made, the money remaining in the motor vehicle suspense fund, except for remittances received within the previous two months that are unidentified as to source or disposition, shall be d