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New Mexico

New Mexico

Incentives/Policies for Renewables & Efficiency

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Renewable Energy Production Tax Credit (Corporate)   

Last DSIRE Review: 05/24/2013
Program Overview:
State: New Mexico
Incentive Type: Corporate Tax Credit
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Municipal Solid Waste, Anaerobic Digestion
Applicable Sectors: Commercial, Industrial
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
Start Date:7/1/2002
Expiration Date:1/1/2018
Web Site: http://www.emnrd.state.nm.us/ecmd/CleanEnergyTaxIncentives/ProdTa...
Authority 1:
Date Enacted:
Date Effective:
Expiration Date:
N.M. Stat. ยง 7-2A-19
3/4/2002, subsequently amended
7/1/2002
1/1/2018
Authority 2:
NMAC 3.13.19
Summary:

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.


 
Contact:
  Harold Trujillo
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
E-Mail: harold.trujillo@state.nm.us
 
  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/
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.