Agricultural Biomass Income Tax Credit (Corporate)

March 08, 2023

Summary

H.B. 171 of 2010 created a tax credit for agricultural biomass from a dairy or feedlot transported to a facility that uses agricultural biomass to generate electricity or make biocrude or other liquid or gaseous fuel for commercial use. For the purposes of this tax credit, agricultural biomass means wet manure. The Energy, Minerals and Natural Resources Department may adopt additional specifications for agricultural biomass through a rule making process.

The credit is effective for biomass originating between January 1, 2011, and January 1, 2030. The credit is worth $5 per wet ton. Eligible projects must apply to the Taxation and Revenue Department for the credit. The Taxation and Revenue Department is authorized to distribute $5,000,000 in credits annually and will award a qualification document to eligible projects on a first-come, first-served basis.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	New Mexico
Incentive Type:	Corporate Tax Credit
Web Site:	https://www.emnrd.nm.gov/ecmd/tax-incentives/agricultural-biomass-income-tax-credit/#gsc.tab=0
Administrator:	Taxation and Revenue Department
Start Date:	1/1/2011
Eligible Renewable/Other Technologies:	Biomass
Incentive Amount:	$5 per wet ton
Maximum Incentive:	Statewide annual limit of $5 million in total credits
Equipment Requirements:	The biomass must originate from a dairy or feedlot and be transported to a facility that uses agricultural biomass to generate electricity or make biocrude or other liquid or gaseous fuel for commercial use.
Carryover Provisions:	Unused credit may be carried forward for up to 4 years.

Authorities

Name:	House Bill 0171
Date Enacted:	3/8/2010
Effective Date:	1/1/2011
Expiration Date:	12/31/2019

Name:

New Mexico Title 3 Chapter 4 Part 20

Contact

Name:	New Mexico Energy, Minerals and Natural Resources
Address:	1220 South St. Francis Drive Santa Fe NM 87505
Phone:	(505) 476-3310

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.