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Combined Heat and Power Partnership

Renewable Energy Production Tax Credit (Corporate)

dCHPP Glossary (PDF) (2 pp, 53K)

Date Last Updated11/16/2012
Incentive TypeTax
State/FederalNM
Incentive Administrator/Contact OfficeNew Mexico Energy, Minerals and Natural Resources Department
Incentive Initiation Date7/1/2002
Incentive Expiration Date1/1/2018
Incentive Size and Funding SourceThe New Mexico Renewable Energy Production Tax Credit provides a tax credit against the corporate income tax of $0.01 per kilowatt-hour for companies that generate electricity from biomass and wind. Companies that generate electricity from solar energy receive a tax incentive that averages $0.027/kWh; it varies annually according to the following scale:
  • Year 1: $0.015/kWh.
  • Year 2: $0.02/kWh.
  • Year 3: $0.025/kWh.
  • Year 4: $0.03/kWh.
  • Year 5: $0.035/kWh.
  • Year 6: $0.04/kWh.
  • Year 7: $0.035/kWh.
  • Year 8: $0.03/kWh.
  • Year 9: $0.025/kWh.
  • Year 10: $0.02/kWh.
For biomass and wind generators, the credit is applicable only to the first 400,000 MWh of electricity in each of the 10 consecutive taxable years. For solar, the credit is applicable only to the first 200,000 MWh of electricity in each taxable year.

Total generation from both the corporate and personal tax credit programs combined must not exceed 2 million MWh of production annually. Taxpayers cannot claim both the corporate and the personal tax credit for the same renewable energy system.

For electricity generated prior to October 1, 2007, excess credit may be carried forward for up to 5 consecutive taxable years. For electricity generated on or after October 1, 2007, excess credit shall be refunded to the taxpayer in order to allow project owners with limited tax liability to fully use the credit.
Eligible RecipientCompanies that generate electricity from a biomass, solar or wind system installed before January 2018.
Eligible FuelBiogas; Woody Biomass; Landfill Gas; Municipal Solid Waste; Other
Eligible Project Size (MW)1.0 MW or greater
Minimum Efficiency Required (%)Does Not Specify
Application Form(s)Tax Credit Claim Form (PDF) (5 pp, 218K)
Resource Website(s)

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