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Advanced Energy Gross Receipts Tax Deduction

Retail Supplier
Savings Category 
Maximum Rebate 

60 million

Program Info
Start Date 


New Mexico
Program Type 
Sales Tax Incentive
Rebate Amount 

100% of gross receipts from sale and installation of an eligible facility

New Mexico Taxation and Revenue Department

New Mexico has a gross receipts tax structure for businesses instead of a sales tax. Businesses are taxed on the gross amount of their business receipts each year before expenses are deducted. Revenue generated by the sale and installation of a "qualified generating facility" may be deducted from gross receipts before the gross receipts tax is calculated. The deductions are allowed for a ten year period starting the year construction begins. Qualified generating facilities have a minimum nameplate capacity of 1 megawatt (MW) and include geothermal thermal electric, photovoltaic, solar thermal electric, and recycled energy systems.

To qualify for the exemption, the owner of a qualified generating facility must first obtain a certificate of eligibility from the Department of Environment. The owner must then present the certificate of eligibility to the Taxation and Revenue Department to obtain a nontaxable transaction certificate. The owner must then give the nontaxable transaction certificate to the seller of the equipment. House Bill 440 of 2011 amended this credit to allow it to be claimed on equipment leased in addition to equipment purchased.

Other Information 

Must be 1 MW-AC or larger