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New Mexico Approves Hybrid Car Tax Break

Tax break for New Mexicans buying new hybrid gas-electric vehicles will be continued for another three years under legislation approved by the House.

SANTA FE (AP) -- A tax break for New Mexicans buying new hybrid gas-electric vehicles will be continued for another three years under legislation approved by the House.

Currently, there is a one-time exemption from the state's 3 percent motor vehicle excise tax for people buying fuel-efficient hybrid vehicles. The exemption doesn't apply to purchases of used vehicles.

However, the tax break will expire at the end of June unless lawmakers extend it.

The legislation will keep the tax incentive in place until 2012. The bill was approved Tuesday by the House and goes to the Senate. Gov. Bill Richardson supports the measure.