5% of taxpayer's qualified expenditures
Determined by New Mexico Department of Taxation and Revenue
The Alternative Energy Product Manufacturers tax credit may be claimed for manufacturing alternative energy products and components, including renewable energy systems, fuel cell systems, and electric and hybrid-electric vehicles. Alternative energy components include parts, assembly of parts, materials, ingredients or supplies that are incorporated directly into end-use products.
The total amount of the credit is approved by the Taxation and Revenue Department and is not to exceed five percent of the taxpayer’s qualified expenditures. A qualified expenditure is the purchase of manufacturing equipment made after July 1, 2006.
The alternative energy product manufacturers tax credit may only be deducted from the taxpayer's modified combined tax liability which is the total liability for the reporting period for the gross receipts, compensating tax, and withholding tax. Any portion of the alternative energy product manufacturers tax credit that remains unused at the end of the taxpayer's reporting period may be carried forward for five years. Click [http://www.tax.state.nm.us/forms/year99/crsforms.htm here] for the forms required to claim the tax credit.