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Renewable Energy Production Tax Credit (Personal)

Eligibility 
Agricultural
Commercial
Industrial
Savings Category 
Photovoltaics
Maximum Rebate 

Wind and biomass: First 400,000 MWh annually for 10 years (i.e. 4,000,000/year)
Solar electric: First 200,000 MWh annually for 10 years (annual amount varies)
Statewide cap: 2,000,000 MWh plus an additional 500,000 MWh for solar electric

Program Info
Start Date 

1/1/2008

State 
New Mexico
Program Type 
Personal Tax Credit
Rebate Amount 

0.01/kWh for wind and biomass
0.027/kWh (average) for solar (see below)

Provider 
New Mexico Energy, Minerals and Natural Resources Department

Enacted in 2002, the New Mexico Renewable Energy Production Tax Credit provides a tax credit against the personal income tax of one cent per kilowatt-hour for companies that generate electricity from wind or biomass. Companies that generate electricity from solar energy receive a tax incentive that varies annually according to the following schedule:
* Year 1: 1.5¢/kWh
* Year 2: 2¢/kWh
* Year 3: 2.5¢/kWh
* Year 4: 3¢/kWh
* Year 5: 3.5¢/kWh
* Year 6: 4¢/kWh
* Year 7: 3.5¢/kWh
* Year 8: 3¢/kWh
* Year 9: 2.5¢/kWh
* Year 10: 2¢/kWh
According to the EMNRD, this incentive averages 2.7¢/kWh annually.

For wind and biomass generators, the credit is applicable only to the first 400,000 megawatt-hours (MWh) of electricity in each of 10 consecutive taxable years. For solar, the credit is applicable only to the first 200,000 MWh of electricity in each taxable year. To qualify, an energy generator must have a capacity of at least 1 megawatt and be installed before January 2018.

Total generation from both the [http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=N... corporate ] and personal tax credit programs combined must not exceed two million megawatt-hours of production annually, plus an additional 500,000 MWh produced by solar energy. 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 five 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 utilize the credit.

The renewable energy production tax credit [http://www.tax.newmexico.gov/SiteCollectionDocuments/rpd-41227.pdf claim form and instructions] provide additional information. Click [http://www.tax.newmexico.gov/SiteCollectionDocuments/Publications/FYI-Pu... here] for even more information.

Other Information 

System must be in compliance with all applicable performance and safety standards; generators must be certified by the New Mexico Energy, Minerals, and Natural Resources Department (EMNRD).