Last DSIRE Review: 04/24/2012
||Corporate Tax Credit
|Eligible Renewable/Other Technologies:
||Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Municipal Solid Waste, Anaerobic Digestion
|Amount:||$0.01/kWh for wind and biomass
$0.027/kWh (average) for solar (see below)|
|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|
|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).|
|Carryover Provisions:||Prior to 10/1/2007: Excess credit may be carried forward five years
After 10/1/2007: Excess credit is refunded to the taxpayer|
N.M. Stat. § 7-2A-19|
3/4/2002, subsequently amended
Enacted in 2002, the New Mexico Renewable Energy Production Tax Credit provides a tax credit against the corporate income tax of one cent per kilowatt-hour 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: 1.5¢/kWh
- Year 2: 2¢/kWh
- Year 3: 2.5¢/kWh
- Year 4: 3¢/kWh
- Year 5: 3.5¢/kWh
- Year 6: 4¢/kWh
- Year 7: 3.5¢/kWh
- Year 8: 3¢/kWh
- Year 9: 2.5¢/kWh
- Year 10: 2¢/kWh
According to the EMNRD, this incentive averages 2.7¢/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 and be installed before January 2018.
Total generation from both the corporate and personal tax credit programs combined must not exceed two million megawatt-hours 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 five 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.
The renewable energy production tax credit claim form and instructions provide additional information. Click here for even more information.
New Mexico Energy, Minerals and Natural Resources Department
Energy Conservation and Management Division
1220 South St. Francis Drive
Wendell Chino Building, First Floor
Santa Fe, NM 87505
Phone: (505) 476-3372
Public Information |
Taxation and Revenue Department
Administrative Services Division - Joseph Montoya Bldg.
1100 South St. Frances Dr
PO Box 630
Santa Fe, NM 87504-0630
Phone: (505) 827-0369
Phone 2: (505) 827-0870
Web Site: http://www.tax.state.nm.us/