AN ACT
RELATING TO TAXATION; EXTENDING THE
RENEWABLE ENERGY PRODUCTION TAX CREDIT TO INCLUDE BIOMASS AS A QUALIFIED ENERGY
RESOURCE; CHANGING ELIGIBILITY REQUIREMENTS FOR CERTIFICATION.
BE IT ENACTED BY THE LEGISLATURE OF
THE STATE OF NEW MEXICO:
Section 1. Section 7-2A-19 NMSA 1978 (being Laws 2002,
Chapter 59, Section 1) is amended to read:
"7-2A-19. RENEWABLE ENERGY PRODUCTION TAX
CREDIT--LIMITATIONS--DEFINITIONS--CLAIMING THE CREDIT.--
A. A taxpayer that owns a qualified energy
generator certified by the energy, minerals and natural resources department is
eligible for a tax credit in an amount equal to one cent ($.01) per
kilowatt-hour for the first four hundred thousand megawatt-hours of electricity
produced by the qualified energy generator using a qualified energy resource in
the taxable year. A taxpayer shall be
eligible for the tax credit for ten consecutive years, beginning on the date the
qualified energy generator begins producing electricity. The tax credit provided in this section may
be referred to as the "renewable energy production tax credit".
B. As used in this section:
(1) "biomass" means agricultural or
animal waste; thinnings from trees less than fifteen inches in diameter, slash
and brush; lumbermill or sawmill residues; and salt cedar and other
phreatophytes removed from watersheds or river basins;
(2) "qualified energy generator" means
a facility with at least ten megawatts generating capacity located in New
Mexico that produces electricity using a qualified energy resource and that
sells that electricity to an unrelated person; and
(3) "qualified energy resource" means a
resource that generates electrical energy by means of a fluidized bed
technology or similar low-emissions technology or a zero-emissions generation
technology that has substantial long-term production potential and that uses
only the following energy sources:
(a) solar light;
(b) solar heat;
(c) wind; or
(d) biomass.
C. A taxpayer may request certification of
eligibility for the renewable energy production tax credit from the energy,
minerals and natural resources department, which shall determine if the
applicant is a qualified energy generator; provided that the department may
certify the eligibility of an energy generator only if the total amount of
electricity that may be produced annually by all qualified energy generators
that are certified will not exceed two million megawatt-hours. Applications shall be considered in the order
received. The energy, minerals and
natural resources department may estimate the annual power-generating potential
of a generating facility for the purposes of this section. The energy, minerals and natural resources
department shall issue a certificate to the applicant stating whether the
applicant is an eligible qualified energy generator and the estimated annual
production potential of the generating facility, which shall be the limit of
that facility's energy production eligible for the tax credit for the taxable
year. The energy, minerals and natural
resources department may issue rules governing the procedure for administering
the provisions of this subsection.
D. To claim a renewable energy production tax
credit, a taxpayer that has been certified as eligible pursuant to Subsection C
of this section shall submit to the taxation and revenue department the
certificate issued by the energy, minerals and natural resources department,
documentation of the amount of electricity produced by the taxpayer's facility
in the taxable year and any other information the taxation and revenue
department may require to determine the amount of the tax credit due the
taxpayer.
E. Once a taxpayer has been granted a renewable
energy production tax credit for a given facility, that taxpayer shall be
allowed to retain its original date of application for tax credits for that
facility until either the facility goes out of production for more than six
consecutive months in a year or until the facility's ten-year eligibility has
expired.
F. The renewable energy production tax credit
may be deducted from the taxpayer's New Mexico corporate income tax liability
for the taxable year. If the amount of
the tax credit claimed exceeds the taxpayer's corporate income tax liability,
the excess may be carried forward for up to five consecutive taxable
years."
HB 146
Page 3