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Alternative Energy Product Manufacturers Tax Credit

Eligibility 
Commercial
Industrial
Savings Category 
Geothermal Electric
Solar Thermal Electric
Solar Photovoltaics
Wind (All)
Biomass
Municipal Solid Waste
Fuel Cells using Non-Renewable Fuels
Landfill Gas
Wind (Small)
Anaerobic Digestion
Fuel Cells using Renewable Fuels
Maximum Rebate 

5% of taxpayer's qualified expenditures

Program Info
Sector Name 
State
Administrator 
New Mexico Energy, Minerals and Natural Resources Department
State 
New Mexico
Program Type 
Industry Recruitment/Support
Rebate Amount 

Determined by New Mexico Department of Taxation and Revenue

Summary 
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. In 2011 S.B. 233 added "products extracted from or secreted by a single cell photosynthetic organism" to the list of eligible alternative energy products.

The total amount of the credit is approved by the Taxation and Revenue Department and is not to exceed 5% of the taxpayer’s qualified expenditures. A qualified expenditure is the purchase of manufacturing equipment made after July 1, 2006.

To be eligible to claim a credit, the taxpayer must employ at least one new full-time employee for every $500,000 of expenditures up to $30,000,000, and at least one new full-time employee for every $1,000,000 of expenditures over $30,000,000. 

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 5 years.