Category: State Incentives, Tax Incentives
AGENCY: Taxation and Revenue Department
DESCRIPTION: The Alternative Energy Product Manufacturers Tax Credit provides up to a 5% credit of qualified expenditures for manufacturing equipment used in a manufacturing operation. The credit may be applied against gross receipts tax, compensating tax, withholding tax, E911 and TRS tax liabilities.
ELIGIBILITY: Manufacturers of certain alternative energy products may receive the tax credit. Alternative energy product means an alternative energy vehicle, fuel cell system, renewable energy system, or any component of an alternative energy vehicle, fuel cell system or renewable energy system, or components for integrated gasification combined cycle coal facilities and equipment related to the sequestration of carbon from integrated gasification combined cycle plants.
• If the credit amount exceeds the taxpayer’s liability, the excess can be carried forward for up to five years.
• To be eligible to claim a credit, the taxpayer shall employ at least one new full-time employee for every $500,000 of expenditures up to $30 million, and at least one new full-time employee for every $1 million of expenditures over $30 million.
• Visit the Taxation and Revenue Department homepage at http://www.state.nm.us/tax/home.htm or call the office of the Secretary at (505) 827-0951.