Advanced Energy Tax Credit (Corporate)

September 27, 2018

Summary

Note: The deadline for qualifying for this tax incentive was 12/31/2015. This summary is here for informational purposes only.

A taxpayer that holds an interest in a qualified generating facility located in New Mexico and that files a New Mexico corporate income tax return may claim an advanced energy corporate income tax credit in an amount equal to 6% of the eligible generation plant costs of a qualified generating facilities (see § 7-2A-25).

“Eligible generation plant costs" means expenditures for the development and construction of a qualified generating facility, including costs related to permitting, site characterization and assessment, engineering, design, and site and equipment acquisition.

Eligible Technologies

"Qualified generating facility" means a facility that begins construction not later than December 31, 2015, and includes, among other technologies:

a solar thermal electric generating facility that begins construction on or after July 1, 2007 and that may include an associated renewable energy storage facility;
a solar photovoltaic electric generating facility that begins construction on or after July 1, 2009 and that may include an associated renewable energy storage facility;
a geothermal electric generating facility that begins construction on or after July 1, 2009; and
a recycled energy project if that facility begins construction on or after July 1, 2007.

Combined Reporting

Any balance of the advanced energy corporate income tax credit that the taxpayer is approved to claim may be claimed by the taxpayer as an “advanced energy combined reporting tax credit” (see § 7-9G-2). A taxpayer granted approval to claim an advanced energy combined reporting tax credit may claim an amount of available credit against the taxpayer's gross receipts tax, compensating tax, or withholding tax due to the state.

Carryover

Any unused credit may be carried forward for up to 10 years.

Process

The aggregate amount of all advanced energy tax credits that may be claimed with respect to a qualified generating facility cannot exceed $60,000,000. In order to claim the tax credit, developers must obtain a certificate of eligibility from the New Mexico Environment Department and submit the certificate to the New Mexico Taxation and Revenue Department.

Click here for more information, including forms to apply for the tax credit.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	New Mexico
Incentive Type:	Corporate Tax Credit
Web Site:	http://www.tax.newmexico.gov/Tax-Professionals/tax-credits-overview.aspx
Administrator:	Taxation and Revenue Department
Start Date:
Eligible Renewable/Other Technologies:	Geothermal Electric Solar Thermal Electric Solar Photovoltaics
Incentive Amount:	6% credit against personal, corporate, gross receipts, compensating, or withholding taxes
Maximum Incentive:	$60 million
Eligible System Size:	Solar and Geothermal: 1 Megawatt minimum Recycled Energy: 15 Megawatt maximum
Carryover Provisions:	10 years

Incentives

This program has 1 incentives

Technologies:	Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics
Sectors:	Commercial
Parameters:	The incentive is 6.00 %, The system has a maximum of 1.00 MW, The incentive has a minimum of $1000000.00

Authorities

Name:	N.M. Stat. § 7-9G-2
Date Enacted:	4/3/2007
Effective Date:	7/1/2007

Name:	N.M. Stat. § 7-2A-25
Date Enacted:	3/9/2009
Effective Date:	7/1/2009

Contact

Name:	Information Specialist
Organization:	New Mexico Taxation & Revenue Department
Address:	1100 South St. Francis Drive Santa Fe NM 87504
Phone:	(505) 827-0700

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.