The Alternative Energy Product Manufacturers tax credit may be claimed for manufacturing alternative energy products and components, including renewable energy systems, fuel cell systems, and electric and hybrid-electric vehicles. Alternative energy components include parts, assembly of parts, materials, ingredients, or supplies that are incorporated directly into end-use products. In 2011 S.B. 233 added "products extracted from or secreted by a single cell photosynthetic organism" to the list of eligible alternative energy products.
The total amount of the credit is approved by the Taxation and Revenue Department and is not to exceed 5% of the taxpayer’s qualified expenditures. A qualified expenditure is the purchase of manufacturing equipment made after July 1, 2006.
To be eligible to claim a credit, the taxpayer must employ at least one new full-time employee for every $500,000 of expenditures up to $30,000,000, and at least one new full-time employee for every $1,000,000 of expenditures over $30,000,000.
The alternative energy product manufacturers tax credit may only be deducted from the taxpayer's modified combined tax liability, which is the total liability for the reporting period for the gross receipts, compensating tax, and withholding tax. Any portion of the alternative energy product manufacturers tax credit that remains unused at the end of the taxpayer's reporting period may be carried forward for 5 years.
|Incentive Type:||Industry Recruitment/Support|
|Administrator:||New Mexico Energy, Minerals and Natural Resources Department|
|Eligible Renewable/Other Technologies:||
|Incentive Amount:||Determined by New Mexico Department of Taxation and Revenue|
|Maximum Incentive:||5% of taxpayer's qualified expenditures|
|Terms:||5-year tax credit carryover|
|Name:||N.M. Stat. § 7-9J-1 et seq.|
|Date Enacted:||4/3/2007, subsequently amended|
|Organization:||New Mexico Energy, Minerals and Natural Resou|
1220 S. St. Francis Drive
Santa Fe NM 87505
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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