Alternative Fuel Vehicle Loan Program

This loan program is not available to individual homeowners. It provides financing only to state government agencies, local government entities (such as counties and municipalities), schools, and educational institutions for purchasing medium-duty and heavy-duty electric vehicles. If your organization qualifies, contact the New Mexico Department of Energy, Minerals, and Natural Resources for loan application details.

This program does not create direct customer opportunities for contractors, as it finances vehicle purchases by public sector entities rather than private businesses or individuals. You may engage with government fleet managers and educational institutions that use these loans to electrify their vehicle fleets, but the loan fund itself is administered at the state level and does not include commercial contractors as eligible borrowers.

The Alternative Fuel Acquisition Loan Fund is a revolving loan fund capped at $5 million, administered by the New Mexico Department of Energy, Minerals, and Natural Resources to finance medium-duty and heavy-duty electric vehicle purchases. Eligible borrowers are state agencies, political subdivisions, and educational institutions. The program supports compliance with the New Mexico Alternative Fuels Acquisition Act and federal Energy Policy Act requirements, which mandate that 75% of light-duty vehicles acquired by state fleets meet efficiency or alternative fuel standards.