New Mexico Administrative Code
Title 3 - TAXATION
Chapter 13 - BUSINESS TAX CREDITS
Part 19 - RENEWABLE ENERGY PRODUCTION TAX CREDIT
Section 3.13.19.8 - GENERAL PROVISIONS

Universal Citation: 3 NM Admin Code 3.13.19.8

Current through Register Vol. 35, No. 18, September 24, 2024

A. Only those taxpayers that meet the requirements of 3.13.19.14 NMAC are eligible for a tax credit.

B. A proposed project shall meet these required milestones. If a project fails to meet a milestone, the division shall reject the application.

(1) Applicant submits a complete renewable energy production tax credit application package to the division.

(2) Construction of a qualified energy generator shall commence within 12 months of the application's approval. The applicant shall meet this requirement by entering into a construction contract and by the placement of a permanent, physical part of the facility, such as a poured concrete foundation. Applicant shall submit to the division a copy of the contract accompanied by a letter certifying that such construction has occurred.

(3) A qualified energy generator shall generate electrical power and achieve commercial operation, demonstrating at least 10 megawatts generating capacity, within 24 months of the division's approval of the application.

(4) Within 24 months of the application's approval, the applicant shall submit to the division:
(a) the name of the qualified energy generator;

(b) electric output meter readings documenting commercial operation and indicating at least 10 megawatts output;

(c) a copy of the bill of sale or other documentation sufficient to evidence a sale of the power indicating the amount of electrical energy produced, precise time period of production, and the name of the buyer of the electricity; and

(d) records to verify that the applicant is selling to unrelated persons.

C. NMSA 1978, Section 7-2A-19 limits the power production of a qualified energy generator eligible for a tax credit to 400,000 megawatt-hours per year. It also limits the eligible power production of all qualified energy generators to 2,000,000 megawatt-hours per year. When the 2,000,000 megawatt-hours limit is reached based on the total of applications approved, the division will no longer approve applications, but will accept them for future consideration in the event that approved facilities are not completed on schedule and tax credit becomes available. The division shall keep a record of the order of receipt of all applications.

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