Advanced Energy Gross Receipts Tax Deduction (New Mexico)

Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place	New Mexico
Name	Advanced Energy Gross Receipts Tax Deduction
Incentive Type	Sales Tax Incentive
Applicable Sector	Commercial, Construction, Installer/Contractor, Retail Supplier
Eligible Technologies	Solar Thermal Electric, Photovoltaics, Geothermal Electric
Active Incentive	Yes
Implementing Sector	State/Territory
Energy Category	Renewable Energy Incentive Programs
Amount	100% of gross receipts from sale and installation of an eligible facility
Equipment Requirements	Solar and Geothermal: 1 Megawatt minimum Recycled Energy: 15 Megawatt maximum
Start Date	2010-07-01
Maximum Incentive	60 million
Program Administrator	Taxation and Revenue Department
References	DSIREDatabase of State Incentives for Renewables and Efficiency

Summary

New Mexico has a gross receipts tax structure for businesses instead of a sales tax. Businesses are taxed on the gross amount of their business receipts each year before expenses are deducted. Revenue generated by the sale and installation of a "qualified generating facility" may be deducted from gross receipts before the gross receipts tax is calculated. The deductions are allowed for a 10-year period starting the year construction begins. Qualified generating facilities have a minimum nameplate capacity of 1 megawatt (MW) and include geothermal thermal electric, photovoltaic, solar thermal electric, and recycled energy systems.

To qualify for the exemption, the owner of a qualified generating facility must first obtain a certificate of eligibility from the Department of Environment. The owner must then present the certificate of eligibility to the Taxation and Revenue Department to obtain a nontaxable transaction certificate. The owner must then give the nontaxable transaction certificate to the seller of the equipment. This credit can be claimed on equipment leased in addition to equipment purchased.

Incentive Contact

Contact Name	Information Specialist
Department	New Mexico Taxation & Revenue Department
Address	1100 South St. Francis Drive
Place	Santa Fe, New Mexico
Zip/Postal Code	87504
Phone	(505) 827-0700
Website	http://www.tax.newmexico.gov

Authorities (Please contact the if there are any file problems.)

Authority 1:	N.M. Stat. § 7-9-114
Date Effective	2010-07-01
Date Enacted	2010-03-08

• Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.