Incentives Directory

Renewable Energy Production Tax Credit

AGENCY: Energy, Minerals, and Natural Resources Department
DESCRIPTION: To encourage the growth of and investment in renewable sources of energy, the state of New Mexico allows a certain amount of credit for those eligible against their corporate income tax.
ELIGIBILITY: A person is eligible for the Renewable Energy Production Tax Credit if he or she holds title to a qualified energy generator or leases property upon which a qualified energy generator operates from a county or municipality under authority of an Industrial Revenue Bond.
STRUCTURE:
• The tax credit is equal to a penny per kilowatt-hour of the first 400,000 megawatt-hours of electricity produced by the qualified energy generator.
• A taxpayer eligible for this credit will be eligible for 10 consecutive years beginning on the date the qualified energy generator begins producing electricity.
• A person that holds title to a facility generating electricity from a qualified energy resource pursuant to an IRB is eligible for certification for this credit. QUALIFICATIONS/CRITERIA:
• A qualified energy generator is a facility with at least 10 megawatts generating capacity located in the state that produced electricity using a qualified energy resource and sells that electricity to an unrelated person.
• A qualified energy resource is a resource that generates electrical energy by means of a fluidized bed technology or similar low-emissions technology or a zero emissions generation technology that has substantial long term production potential and that uses only solar light, solar heat, wind, or biomass.
• This credit may be deducted from the taxpayer’s New Mexico corporate income tax liability for a taxable year. If the amount of the tax credit claimed exceeds the taxpayer’s corporate income tax liability, the excess may be carried forward for up to five consecutive taxable years.
• See HB 950 2005 and .
• Visit the department’s homepage at http://www.emnrd.state.nm.us/EMNRD/MAIN/index.htm or call (505) 476-3200.

Category: State Incentives, Tax Incentives

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