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New Mexico

New Mexico

Incentives/Policies for Renewables & Efficiency

Printable Version
Alternative Energy Product Manufacturers Tax Credit   

Last DSIRE Review: 11/21/2014
Program Overview:
State: New Mexico
Incentive Type: Industry Recruitment/Support
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Fuel Cells, Municipal Solid Waste, Batteries, Hybrid Electric Vehicles, Electric Vehicles, products extracted from or secreted by a single cell photosynthetic organism, Anaerobic Digestion, Fuel Cells using Renewable Fuels
Applicable Sectors: Commercial, Industrial
Amount:Determined by New Mexico Department of Taxation and Revenue
Maximum Incentive:5% of taxpayer's qualified expenditures
Terms:5-year tax credit carryover
Start Date:07/01/2006
Web Site:
Authority 1:
Date Enacted:
Date Effective:
N.M. Stat. ยง 7-9J-1 et seq.
4/3/2007, subsequently amended

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. 

  Sandra Ely
New Mexico Energy, Minerals and Natural Resources Department
Energy Conservation and Management Division
1190 St. Francis Drive
Rm. N2150
Santa Fe, NM 87505
Phone: (505) 827-0351
Web Site:
NCSU - home
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 2014 - 2015 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.