New Mexico Administrative Code
Title 3 - TAXATION
Chapter 13 - BUSINESS TAX CREDITS
Part 19 - RENEWABLE ENERGY PRODUCTION TAX CREDIT
Section 3.13.19.7 - DEFINITIONS

A. "Applicant" means a business entity that holds title to a qualifying energy generator or leases property upon which a qualified energy generator operates from a county or municipality pursuant to an industrial revenue bond, or plans to develop a qualified energy generator and will hold title to the qualified energy generator or lease property upon which the qualified energy generator operates from a county or municipality pursuant to an industrial revenue bond at the time the division certifies that the facility is a qualified energy generator, and that applies to receive the renewable energy production tax credit pursuant to this part for itself or on other taxpayers' behalf.

B. "Biomass" means agricultural or animal waste; thinnings from trees less than 15 inches in diameter; slash and brush; lumber mill or sawmill residues; and salt cedar and other phreatophytes removed from watersheds or river basins;

C. "Confidential information" means information included in the renewable energy production tax credit application package or that the department requires the applicant to submit as part of the approval process that the applicant requests in writing to be held confidential.

D. "Department" means the energy, minerals and natural resources department.

E. "Director" means the director or head of the department's energy conservation and management division.

F. "Division" means the department's energy conservation and management division.

G. "Five percent ownership" means New Mexico corporate income taxpayers that individually or collectively, directly or indirectly, own at least five percent of a qualified energy generator or of the total capitalized cost to construct a qualified energy generator; and are entitled to receive at least five percent of cash distributed to owners of the qualified energy generator over its useful life.

H. "Generating capacity" means a qualified energy generator's nominal rated electrical power output (nameplate capacity) in megawatts during optimum resource conditions, as the generator's manufacturer specifies. Generating capacity shall be at least 10 megawatts. If the prevailing resource conditions at a project site are insufficient for a qualified energy generator to attain full nameplate capacity output at the time the division issues the certification, the power output shall be that which corresponds to at least 10 megawatts nominal rating according to the equipment manufacturer's published performance ratings for those prevailing conditions.

I. "Interconnection agreement" means an agreement allowing the applicant to interconnect the qualified energy generator, of a specified type and size, to a suitable electric transmission or distribution line.

J. "Land rights agreement" means an agreement providing the applicant with control of land and the rights necessary to construct and operate a qualified energy generator.

K. "Notice of allocation" means a form the division prescribes that an applicant completes indicating the allocation of its or another entity's right to claim the tax credit to one or more taxpayers and each taxpayer's interest in the qualified energy generator.

L. "Power purchase agreement" means an agreement that binds an applicant to provide power at a specified price and a buyer to purchase power from the qualified energy generator.

M. "Project finance agreement" means an agreement that binds a capable entity to provide the financing necessary for a qualified energy generator's construction.

N. "Qualified energy generator" means a facility with at least 10 megawatts generating capacity located in New Mexico that produces electricity using a qualified energy resource and that sells electricity to an unrelated person.

O. "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: solar light, solar heat, wind, or biomass.

P. "Renewable energy production tax credit application package" or "application package" means the application documents submitted by an applicant to the division for certification to receive the renewable energy production tax credit.

Q. "Secretary" means the head of the department.

R. "Tax credit" means the renewable energy production tax credit.

S. "Unrelated person" means a person who is not a partner or joint venture participant who owns more than 50 percent of the profit interest or capital interest in the partnership or joint venture; shareholder who owns more than 50 percent of the shares, subsidiary, or parent company; or a trade or business that is under common control. If a corporation is a member of an affiliated group of corporations filing a consolidated tax return, the division will treat the corporation as selling electricity to an unrelated person if another member of the affiliated group sells the electricity to the person.