Renewable Energy Production Tax Credit (Corporate) (New Mexico)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place New Mexico

Name Renewable Energy Production Tax Credit (Corporate)
Incentive Type Corporate Tax Credit
Applicable Sector Commercial, Industrial
Eligible Technologies Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Municipal Solid Waste, Anaerobic Digestion
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 0.01/kWh for wind and biomass

0.027/kWh (average) for solar (see below)


Carryover Provisions Prior to 10/01/2007: Excess credit may be carried forward 5 years

After 10/01/2007: Excess credit is refunded to the taxpayer



Eligible System Size Minimum of 1 MW capacity per facility

Equipment Requirements System must be in compliance with all applicable performance and safety standards; generators must be certified by the New Mexico Energy, Minerals, and Natural Resources Department (EMNRD).
Start Date 2002-07-01
Expiration Date 2018-01-01






Maximum Incentive Wind and biomass: First 400,000 MWh annually for 10 years (i.e., 4,000,000/year)

Solar electric: First 200,000 MWh annually for 10 years (annual amount varies) Statewide cap: 2,000,000 MWh plus an additional 500,000 MWh for solar electric











Program Administrator Taxation and Revenue Department
Website http://www.emnrd.state.nm.us/ecmd/CleanEnergyTaxIncentives/ProdTaxCredit.html
Date added to DSIRE 2002-03-11
Last DSIRE Review 2014-08-27



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

Enacted in 2002, the New Mexico Renewable Energy Production Tax Credit provides a tax credit against the corporate income tax of $0.01 per kilowatt-hour (kWh) for companies that generate electricity from wind or biomass. Companies that generate electricity from solar energy receive a tax incentive that varies annually according to the following schedule:


  • Year 1: $0.015 per kWh
  • Year 2: $0.02 per kWh
  • Year 3: $0.025 per kWh
  • Year 4: $0.03 per kWh
  • Year 5: $0.035 per kWh
  • Year 6: $0.04 per kWh
  • Year 7: $0.035 per kWh
  • Year 8: $0.03 per kWh
  • Year 9: $0.025 per kWh
  • Year 10: $0.02 per kWh

According to the EMNRD, this incentive averages $0.027 per kWh annually.


For wind and biomass generators, the credit is applicable only to the first 400,000 megawatt-hours (MWh) of electricity in each of 10 consecutive taxable years. For solar, the credit is applicable only to the first 200,000 MWh of electricity in each taxable year. To qualify, an energy generator must have a capacity of at least 1 megawatt (MW) and produce electricity on or before January 1, 2018.


Total generation from both the corporate and personal tax credit programs combined must not exceed 2,000,000 MWh of production annually, plus an additional 500,000 MWh produced by solar energy. Taxpayers cannot claim both the corporate and the personal tax credit for the same renewable energy system.


For electricity generated prior to October 1, 2007, excess credit may be carried forward for up to 5 consecutive taxable years. For electricity generated on or after October 1, 2007, excess credit shall be refunded to the taxpayer in order to allow project owners with limited tax liability to fully utilize the credit.


Incentive Contact

Contact Name Harold Trujillo
Department New Mexico Energy, Minerals and Natural Resources Department
Division Energy Conservation and Management Division
Address 1220 South St. Francis Drive
Address 2 Wendell Chino Building, First Floor
Place Santa Fe, New Mexico
Zip/Postal Code 87505
Phone (505) 476-3372


Email harold.trujillo@state.nm.us

Contact Name Public Information
Department Taxation and Revenue Department
Division Administrative Services Division - Joseph Montoya Bldg.
Address 1100 South St. Frances Dr
Address 2 PO Box 630
Place Santa Fe, New Mexico
Zip/Postal Code 87504-0630
Phone (505) 827-0369
Phone 2 (505) 827-0870


Website http://www.tax.state.nm.us/
     

Authorities (Please contact the if there are any file problems.)

Authority 1: N.M. Stat. § 7-2A-19
Date Effective 2002-07-01
Date Enacted 03/04/2002, subsequently amended
Expiration Date 2018-01-01

Authority 2: NMAC 3.13.19
Date Effective 2003-03-15



















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"