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Agricultural Biomass Income Tax Credit (Personal)

Eligibility 
Agricultural
Maximum Rebate 

Statewide annual limit of 5 million in total credits

Program Info
Start Date 

1/1/2011

State 
New Mexico
Program Type 
Personal Tax Credit
Rebate Amount 

5 per wet ton

Provider 
New Mexico Energy, Minerals and Natural Resources Department

[http://www.nmlegis.gov/Sessions/10%20Regular/final/HB0171.pdf House Bill 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, 2020. 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 million in these credits annually and will award a qualification document to eligible projects on a first come, first served basis. The qualification document may be submitted by the taxpayer with that taxpayer's personal income tax return or may be sold, exchanged or otherwise transferred to another taxpayer. The taxpayers involved in a credit transfer must notify the Taxation and Revenue Department within ten days of the sale, exchange or transfer. If a tax payer cannot claim all the credit they have been awarded for the year, they may carry forward any unused credit for a maximum of four consecutive years.

Other Information 

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.