Advanced Energy Tax Credit (Personal)

Summary

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

A taxpayer who holds an interest in a qualified generating facility located in New Mexico and who files an individual New Mexico income tax return may claim an advanced energy income tax credit in an amount equal to 6% of the eligible generation plant costs of a qualified generating facility.

“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.

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, an entity that holds an interest in a qualified generating facility may request a certificate of eligibility from the New Mexico Environment Department (NMED). To claim the advanced energy income tax credit, a taxpayer must submit with the taxpayer's New Mexico income tax return a certificate of eligibility from the NMED stating that the taxpayer may be eligible for advanced energy tax credits.

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