Note: The tax credits are fully subscribed. As of July 2016, there were 973 MW (2,148,000 MWh) of projects in the waiting queue for the wind/biomass tax credit and 1,103 MW (2,369,000 MWh) of projects in the waiting queue for the solar tax credit.
Enacted in 2002, the New Mexico Renewable Energy Production Tax Credit provides a tax credit against personal or corporate income tax. To qualify, an energy generator must have a capacity of at least 1 megawatt and be installed before January 2018.
Amount
The tax credit is $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:
According to the Energy, Minerals and Natural Resources Department, 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.
Aggregate Cap
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.
Excess Tax Credits
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.
| Implementing Sector: | State |
| Category: | Financial Incentive |
| State: | New Mexico |
| Incentive Type: | Personal Tax Credit |
| Web Site: | http://www.emnrd.state.nm.us/ecmd/CleanEnergyTaxIncentives/ProdTaxCredit.html |
| Administrator: | Taxation and Revenue Department |
| Start Date: | 01/01/2008 |
| Eligible Renewable/Other Technologies: |
|
| Incentive 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 |
| Technologies: | Wind (All), Biomass, Municipal Solid Waste, Landfill Gas, Anaerobic Digestion |
| Sectors: | Commercial, Industrial |
| Parameters: | The incentive is 0.01 $/kWh (10 years), The system has a maximum of 1.00 MW |
| Technologies: | Solar Thermal Electric, Solar Photovoltaics |
| Sectors: | Commercial, Industrial |
| Parameters: | The incentive is 0.03 $/kWh (10 years), The system has a maximum of 1.00 MW |
| Name: | N.M. Stat. § 7-2-18.18 |
| Date Enacted: | 4/3/2007 |
| Effective Date: | 1/1/2008 |
| Expiration Date: | 1/1/2018 |
| Name: | NMAC 3.13.19 |
| Name: | Public Information |
| Organization: | NM Taxation & Revenue Dept. |
| Address: |
1100 South St. Frances Dr Santa Fe NM 87504-0630 |
| Phone: | (505) 827-0369 |
| Name: | Erica Velarde |
| Organization: | Energy Conservation and Management Division |
| Address: |
1220 South St. Francis Drive Santa Fe NM 87505 |
| Phone: | (505) 476-3496 |
| Email: | erica.velarde1@state.nm.us |
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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