BUSINESS INCENTIVES   

Incentives for Energy and Agriculture:

Renewable Energy Production Credit

Each qualified energy generator may earn an income tax credit of one cent ($.01) per kilowatt-hour for the first 400,000 megawatt-hours (=400,000,000 kilowatts) of electricity produced using a qualified energy source for 10 consecutive years, beginning with the first year of production.

Qualified energy generators are producers with at least 10 megawatts generating capacity located in New Mexico that produce electricity using a qualified energy resource and that sell that electricity to an unrelated person. Qualified energy resource means a resource that generates electrical energy by means of a fluidized bed technology (or similar low emissions technology) or zero-emissions generation technology that has substantial long-term production potential and that uses only biomass, solar light, solar heat, or wind.

Wind Energy Equipment Tax Deduction
New Mexico provides a gross receipts tax deduction for receipts from selling wind turbines, nacelles, rotors, blades and “related equipment” to a state or federal government entity. The deduction is primarily intended to aid those constructing wind farms financed by an industrial revenue bond [link] when the actual purchaser is a New Mexico county or government. By Taxation and Revenue Department Ruling, the deduction does not apply to towers supporting wind turbines.

Biomass-Related Equipment Tax Deduction

The value of biomass-related equipment such as: boiler, gasifier, furnace, turbine-generator, storage facility, feedstock processing or drying equipment, feedstock trailer or interconnection transformer and biomass materials used for processing into biopower, biofuels or bio-based products may be deducted in computing the compensating tax due.

Energy Efficiency and Renewable Energy Bonding Act

Enables the state to issue bonds for $20M in energy efficiency upgrades in state buildings and schools, pay back the bonds with energy savings, and use the net profits for renewable energy projects.

The Efficient Use of Energy Act

Requires public utilities to evaluate the potential for energy efficiency improvements and implement programs to increase energy efficiency.

Clean Energy Grants Program

Appropriates $3M for grants for clean energy projects and hydrogen energy technology for municipalities and other eligible community, tribal, and state entities.

Back to Incentives Index

More on New Mexico's Business Incentives at :